Seoul: Analysts from Korea's Dah Sing Securities Co. said that Google does not plan to restart smart phone production. The acquisition has no effect on Samsung.
South Korea's local securities company said on Friday that Google as a search engine giant does not intend to continue to develop in the field of smart phones, this acquisition of HTC mobile phone business will not affect Samsung Electronics.
On Thursday, Google announced that it will acquire HTC's mobile phone business for $1.1 billion and take over the team's 2,000 employees.
This is not the first time Google has acquired a handset manufacturer. Google bought Motorola in 2011, but sold it to Lenovo just three years later.
Park Jang-ho, an analyst at Korea's Daishin Securities, said, "This acquisition will not have a big impact on Samsung Electronics, because Google should not restart its smart phone business anymore."
“As the international smartphone market matures, the status of Apple and Samsung cannot be shaken. Now companies that want to get involved in this industry have no chance,†he added.
The expected growth of the smart phone market this year is only 5%. Apple, Samsung, and Huawei are now the market leaders. The three companies accounted for 40% of the market.
HTC was also one of the most competitive mobile phone manufacturers before 2010. However, its market share this year was only 0.7%, ranking it 30th.
Analysts said that Google does not want to intervene in the highly competitive smartphone market, but is trying to develop new business opportunities in other areas and use them in conjunction with mobile phones. Such as virtual reality, augmented reality, smart home, automatic driving and so on.
Park said: "Google wants to ensure that it can vigorously develop new technologies in the future through this acquisition, including VR, AR and autonomous driving."
Google’s commercial rivals Apple and Samsung are already using their manufacturing technology to develop new businesses.
Apple's new flagship mobile phone iphone x is equipped with AR functionality. They also gave the AR Kit to developers when they updated ios11 this month.
Samsung also opened businesses in various fields including smart homes, virtual reality and autonomous driving, with a view to combining them with their own smartphones.
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