HTC will come up with another flagship phone, even after billion-dollar deal with Google

HTC will continue to exist as a smartphone maker into 2018.

HTC and Google have just made official a $1.1 billion agreement whereby a substantial proportion of HTC’s smartphone design and engineering team will move to work for Google. While the specific details of the deal have not yet been disclosed, one question has been answered preemptively by HTC’s press release: the company’s own-brand smartphone business will carry on with at least one more flagship.

“This agreement also supports HTC’s continued branded smartphone strategy, enabling a more streamlined product portfolio, greater operational efficiency and financial flexibility. HTC will continue to have best-in-class engineering talent, which is currently working on the next flagship phone, following the successful launch of the HTC U11 earlier this year.”

A streamlined product portfolio basically means HTC will cut all but the most profitable and successful models, which have traditionally been its premier-tier flagship devices such as the U11. Financial flexibility refers to the fact that HTC has been operating at a substantial loss for many months now, and shedding the salaries of the staff Google is acquiring while adding $1.1 billion in cash will indeed give the company more breathing room.

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