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Why a 3-year HTC Nexus deal would be huge

Posted: , by Michael H.

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Why a 3-year HTC Nexus deal would be huge
A new report has come out that claims HTC may have signed an exclusive deal to produce all Nexus phones for the next three years. It has yet to be confirmed, but it got me thinking because I have been a long-time fan of the Nexus program and the devices it produces. A deal like this would not only be unorthodox, but very important move for both Google and HTC alike.

History has proven that HTC can make solid devices. The HTC One lineup, although not terribly impressive in terms of sales, has been critically acclaimed in many ways year after year. Sure, HTC has made some missteps with cameras and designs that are a little bit too similar (as in almost identical) to Apple devices. And, HTC has also had a history of making solid Nexus devices with the Nexus One and Nexus 9. 

Out of the twelve mobile Nexus devices in the history of the program, I've owned all except the Nexus S, 2013 Nexus 7, and Nexus 5X. The HTC-made Nexus 9 is my current tablet, and in my time with all of the devices, the Nexus One is likely still my second favorite Nexus phone of all time (behind the Nexus 6P and just slightly ahead of the Nexus 5). I'll admit that could be due to the fact that it was the very first Android device I bought after growing bored with the iPhone 3G. It was my introduction to the Android world, which means it will always hold a special place for me, but it was also a damn good phone for its time. 

HTC and Google make a good pair, that's not really in question. But, HTC becoming the sole manufacturer for Nexus phones for three years would be a very big move. Assuming the early rumors are true, it would mean two devices this year, and there's no reason to believe the Nexus program would stray from the one-big, one-small lineup going forward. That would ultimately mean six Nexus phones by HTC over the next three years. This would be a big move for a few different reasons. 

Long-term is new


First of all, there has never been an officially known long-term Nexus deal before. In fact, no manufacturer has been a Nexus phone partner for more than two years in a row. Samsung got the closest to an unofficial long-term deal by being the only manufacturer to make Nexus devices three years in a row. Samsung was the first with back-to-back phone offerings with the Nexus S in 2010 and the Galaxy Nexus in 2011, completing its trifecta with the Nexus 10 tablet in 2012. LG was the only other manufacturer with back-to-back Nexus phones with the Nexus 4 and Nexus 5 in 2012 and 2013, respectively, then finished its trio with the Nexus 5X this year. Asus also had a back-to-back in the tablet space with the 2012 and 2013 Nexus 7s. 

If this deal means six HTC Nexus phones over the next three years, that would put HTC at five total Nexus devices after this year alone, and at a total of eight by the end of the run. Even if we were to see a new tablet or two from a former Nexus partner, that would effectively make HTC the biggest name in the Nexus game. 


HTC's needs partners


This brings me to the second reason a move like this would be so huge: HTC itself. As I mentioned earlier, HTC has had a fall from grace. The company was once one of the major players in the mobile market and was legitimately considered to be a potential threat to Samsung's dominance. But after a couple years of bad management and too many devices, HTC has fallen hard. Over the past couple of years, there was serious conversation over whether HTC might go under or be bought out by another company. 

Why a 3-year HTC Nexus deal would be huge

Google was rumored to be interested in buying HTC at one point, as was Facebook. The company seems to be on a bit more solid ground right now, but not by much. The HTC smartphone lineup still hasn't been too successful, but the HTC Vive virtual reality system has been getting a lot of buzz. Of course, that buzz might not prove much about HTC itself, because the Vive is really more the result of Valve development and HTC manufacturing. 

That alone could be kind of telling though. If HTC really has signed an exclusive deal to be the Nexus manufacturer, it shows faith by Google that the company is a worthy partner. From HTC's side of the table, a deal like this could be an admission that HTC can't go at it alone. The company may realize that without help it can't stand up to bigger players like Lenovo/Motorola, Xiaomi, and Huawei, let alone the top dogs of Samsung and Apple. 

HTC partnered with Google for the Nexus 9 in 2014 and now with Valve for the Vive this year, and both look to be wins for HTC. The Vive is getting solid early reviews; beating the Oculus Rift to market should be helpful; and Valve has the gaming pedigree to trust. The Nexus 9 wasn't a very popular tablet, but the interesting thing about the Nexus program is that when devices are done well (which the Nexus 9 hardware was), the praise goes to the manufacturing partner, but when a device disappoints (which the Nexus 9 did in sales), the blame tends to go to Google for its restricted release strategy.

The future of Nexus


That leads to the last reason why this potential deal could be important: what could it mean for the future of the Nexus program. If this is true, it would indicate Google really is sticking behind the Nexus program and may not be planning to build its own devices. But, it also could mean that Google understands how it has painted itself into a corner with Android and Nexus. 

Why a 3-year HTC Nexus deal would be huge

On one hand, Google probably would like to make its own Android hardware. The company has proven it can make good hardware with the Chromebook Pixel and Pixel C, but going deeper into making its own Android phones is a dangerous proposition. Android manufacturing partners were troubled by Google owning Motorola because they didn't want a giant like Google as a competitor, not to mention Google would be able to more deeply integrate and optimize the hardware and software in ways other manufacturers couldn't. Ultimately, Google allegedly made a deal to keep Samsung happy which meant that Google sold Motorola and Samsung would lighten its oppressive Android UI skinning. 

On the other hand, manufacturers reportedly don't like being Nexus partners all that much. The Nexus program is a lot of work for very little payoff. Consider it from the manufacturer perspective: you work with Google developing a device which you build with Google's supervision, then the device gets an extremely limited release, not much marketing, and is often sold at a reduced price. That's a lot of work for not much profit. 

The best examples of Nexus partners have been those who aren't necessarily aiming for profit, but rather want the exposure that it brings. Samsung was too big for the Nexus program, even going so far as to take over the Samsung Galaxy Nexus branding with its own name and its Galaxy branding. However, LG, Asus, and Huawei have all gotten nice boosts by being associated with the Nexus brand. 

Conclusion


A three-year deal with HTC might actually give Google the best of all scenarios in the Nexus program. Google isn't doing the manufacturing, so other OEMs won't get annoyed, but its partner also isn't in position to demand too much. And, maybe best of all, it allows Google to have a long-term strategy for the Nexus program that it could never quite do before. At best, Google has been able to focus on one or two areas that it would want to refine, like adding the fingerprint scanner and improving the cameras in this year's Nexus phones. 

With three years to plan how each Nexus device will evolve and three years to work with the same manufacturing partner on seeing through that plan, Google can have a aim higher. Also, having that time to work with one partner could allow Google to add optimizations that it normally couldn't. Now, it's just a matter of seeing if having a small partner like HTC get this treatment is enough to anger other Android partners.

41 Comments
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posted on 09 Mar 2016, 09:44 1

2. Mxyzptlk (Posts: 11302; Member since: 21 Apr 2012)


They need OIS or a better DIS in their cameras because the Moto X spanks the Nexus 6P in the camera. It's not on the level of the iPhone of course, but it's still good the Moto X is.

HTC needs to be watched closely so we don't get another Nexus 9 on our hands.

posted on 09 Mar 2016, 11:24 8

17. vincelongman (Posts: 4104; Member since: 10 Feb 2013)


For video yes

But for photos the 6P is second only to the S6 and G4/V10

posted on 09 Mar 2016, 13:34

25. IgorEfremenko (Posts: 70; Member since: 30 Nov 2011)


Not to troll, just curious. What's wrong with Nexus 9?

posted on 09 Mar 2016, 19:44 1

30. joey_sfb (Posts: 5338; Member since: 29 Mar 2012)


Using a Nvidia's Denver SOC. Good in theory. Still good overall, but not awesome like one would expect.

http://www.anandtech.com/show/8701/the-google-nexus-9-review/4

posted on 09 Mar 2016, 20:13

31. CoryMeetsWorld (Posts: 170; Member since: 17 Oct 2014)


You are a idiot

posted on 10 Mar 2016, 11:29 1

43. jas0n (Posts: 54; Member since: 01 Mar 2016)


AN. you are AN idiot.

posted on 09 Mar 2016, 09:48 3

3. NexusX (Posts: 482; Member since: 16 May 2013)


nexus is still niche device. google is only selling them to promote their own services.

there is not a lot of incentives for OEM to make phones for google because there isn't alot of money in it for them and they can't promote their own services (their version of android and bloatwares)

that's why as soon and Samsung and HTC became big players in the industry, they stopped making nexus

Partnering with Google is just HTC's last resort to stay relevant in the industry.

posted on 09 Mar 2016, 09:55 10

4. cGmC11 (Posts: 136; Member since: 02 Apr 2012)


Google...Take my money for the next 3 years !!!

posted on 09 Mar 2016, 10:02 6

5. Mrmark (Posts: 268; Member since: 26 Jan 2013)


I am hyped about this also!

posted on 09 Mar 2016, 10:03 6

6. MartyK (Posts: 777; Member since: 11 Apr 2012)


Hopeful they will place the front facing speaker back.. This will help them a lot.

posted on 09 Mar 2016, 10:13 1

7. Odeira (Posts: 242; Member since: 29 Jun 2012)


HTC puts absolutely CRAPPY cameras on their devices - no, really, check it; even 1983 Nikons shoot clearer photos than most new HTC's! - this can't be good.

posted on 09 Mar 2016, 10:19 3

9. carlemillward (unregistered)


But Google is in charge of what camera is used and the uses stock camera software. Do you think Huawei chose the camcorder IMX377?

posted on 09 Mar 2016, 10:47

14. Odeira (Posts: 242; Member since: 29 Jun 2012)


The OEM STILL has the final word. Huawei could've opted for an equally performing Samsung ISOCELL at their own volition, mind you. Same for HTC and everyone else...

posted on 09 Mar 2016, 11:27 4

18. vincelongman (Posts: 4104; Member since: 10 Feb 2013)


Rumors are Google's taking full control for the next Nexus phones

BTW HTC's camera hardware is great, their camera software is what let's them down

posted on 09 Mar 2016, 20:14

33. CoryMeetsWorld (Posts: 170; Member since: 17 Oct 2014)


You are pathetically stupid.

posted on 09 Mar 2016, 21:11 1

37. VZWuser76 (Posts: 3776; Member since: 04 Mar 2010)


In regards to Nexus devices, Google is the customer, the OEM they use is the supplier, so Google has final say on how the device ends up, it's just in the past they took a more off the shelf approach rather than opting for a completely custom device like they did with the 6p. Earlier devices were based off OEM models (Nexus S was based off the Galaxy S, Nexus 4 was based off the LG Optimus, etc.). The 6p is further away from any Huawei phone than any previous Nexus was from their OEM counterparts.

posted on 09 Mar 2016, 20:13

32. CoryMeetsWorld (Posts: 170; Member since: 17 Oct 2014)


Wow aren't you completely stupid and ignorant about HTC cameras. Typical loser troll.

posted on 10 Mar 2016, 01:44

38. Mxyzptlk (Posts: 11302; Member since: 21 Apr 2012)


Someone is butthurt.

posted on 09 Mar 2016, 10:15

8. Ezio2710 (Posts: 184; Member since: 22 Aug 2015)


So , next 3 years the nexus price would be high

posted on 09 Mar 2016, 10:19 4

10. XDAdam (Posts: 108; Member since: 03 Feb 2016)


Maybe I'm in the minority here, but I dont like the sound of a 3-year exclusive contract. That means that the phones will probably all look similar year after year (unless Google instructs HTC to make dramatic changes every year). And lets face it, HTC has not had the best consistent track record.

I would however, be completely fine with HTC making the lower end of the Nexus phones for the next 3 years while other companys get a chance to to make the secondary/more premium Nexus phones (I'm thinking Samsung, Sony and LG).

posted on 09 Mar 2016, 10:29

12. NexusX (Posts: 482; Member since: 16 May 2013)


agreed, i don't understand why the author is so excited about this.

is the article saying HTC makes better devices than LG and Huawei? if that is the case, why are they digging a deeper hole year after year?

posted on 09 Mar 2016, 11:39 2

19. sumpil (Posts: 42; Member since: 02 Feb 2016)


Well HTC has sometimes proven to make better devices than LG and Huawei in terms of Build quality,Sound and Design.

The only reason why HTC is not doing well because they don't have enough money to Market their products and in turn not many people know them around the world.

posted on 09 Mar 2016, 13:25

22. korean411 (Posts: 78; Member since: 04 May 2009)


Yup I agree . They don't have the money or spend spend the money ro have a marketing team to market their product. This move actually is the best decision HTC has made in the last 3-4 yrs. because Google can do all the marketing for them as well as making them a good phone.

posted on 09 Mar 2016, 13:26

23. LionStone (Posts: 724; Member since: 10 Dec 2010)


bingo!

posted on 09 Mar 2016, 18:28

29. MySchizoBuddy (Posts: 147; Member since: 23 Aug 2011)


HTC used to be a leader during the windows phone days every one knows this company.

posted on 09 Mar 2016, 20:42

36. CoryMeetsWorld (Posts: 170; Member since: 17 Oct 2014)


No. Everyone knows Apple and Samsung. Ask people on the street if they know HTC most will tell you now.

posted on 09 Mar 2016, 20:15

34. CoryMeetsWorld (Posts: 170; Member since: 17 Oct 2014)


Having a similar looks is a good thing. Or are you to stupid to realise that?

posted on 10 Mar 2016, 02:23

40. Suo.Eno (Posts: 480; Member since: 17 Feb 2013)


You're not alone. Posted my bit below.

posted on 09 Mar 2016, 10:21 1

11. Subie (Posts: 458; Member since: 01 Aug 2015)


Great article Michael H!

posted on 09 Mar 2016, 10:45

13. Orion78 (Posts: 78; Member since: 27 Mar 2014)


Well HTC and Google better produce then. I'm due for an upgrade this year and hopefully with the phablet version it's 5.7or bigger. Or else I'm going the Lenovo/Moto route.

posted on 09 Mar 2016, 10:57

15. Tondern (Posts: 97; Member since: 23 Feb 2015)


Let's have a close look at the M10 to get a feel of HTCs capabilities this year. But initially, this sounds like sweet music to my ears if Google can keep HTC's usual bad decisions in check.

posted on 09 Mar 2016, 11:01

16. legiloca (Posts: 1205; Member since: 11 Nov 2014)


and realizing we're now in the mostly matured state of Android compared to when HTC released its 1st Nexus, this could call for GGWP to all other OEMs

posted on 09 Mar 2016, 12:26

21. BattleBrat (Posts: 1432; Member since: 26 Oct 2011)


I don't mind as long as we get FULL HTC build quality not the midrange feeling crap like the Nexus 9 (I have one) although I like HTC Sense

posted on 09 Mar 2016, 13:36

26. jove39 (Posts: 1818; Member since: 18 Oct 2011)


HTC did terrible job with Nexus 9...I won't be surprised if HTC did another flop job.

posted on 09 Mar 2016, 20:15

35. CoryMeetsWorld (Posts: 170; Member since: 17 Oct 2014)


HTC did a great job with the Nexus 9. You are just an idiot embarrassment troll.

posted on 09 Mar 2016, 15:28

27. HighOnAndroidFTW (Posts: 185; Member since: 26 Apr 2015)


HTC were dominate back in the OG EVO days, and the thunderbolt, DNA, etc. They had the best phones on the market period. They made bead choices with making several of them exclusives to only a certain carrier which was SO STUPID. Buy they have the potential to come back. And maybe with the stern hand of Google laying down the lines to color within they could hit a home run..

Hopefully, we'll have to wait and see though. Until then, Samsung is killing it. LG is doing well and Motorola is only gaining traction and digging in by the quarter...

posted on 09 Mar 2016, 17:08

28. cleatglitch (Posts: 62; Member since: 25 May 2013)


did i read that correct...look like iphone

posted on 10 Mar 2016, 02:21

39. Suo.Eno (Posts: 480; Member since: 17 Feb 2013)


It's good for HTC but not so much for the Nexus program and obviously the rest of the incumbents as a whole. In fact have to say that I am a tad disappointed with this development. It's not turning out the way lots of people expected since day 1. That partnering OEMs should have equal chance at doing a Nexus.

posted on 10 Mar 2016, 05:07

41. belovedson (Posts: 977; Member since: 30 Nov 2010)


Well let's see what happens . Htc is due to make a good phone. When I mean good I mean good I owned the m9,7, and plenty of other htc devices. If they want to succeed the formula isn't difficult

Nexus device

1080p or higher Samsung amoled screen
Good body to screen ratio
Isocell or top for the line Sony sensor
Wireless charging improved charging
3500 mah battery
Microsd
Unlocked for all us carriers
Boot loader and easily unlocked and root access

Bonus and not necessary

Waterproof
Shatterless screen
Stereo speakers
Ir sensor

Body looks decent. Most of us use cases.
399 for 16gb

No hocus pokus hardware. No new camera sensor

posted on 10 Mar 2016, 10:14

42. tokuzumi (Posts: 929; Member since: 27 Aug 2009)


Waits for everyone to think that HTC will include expandable storage on their Nexus devices, since it was done 7 years ago. I think the HTC Nexus devices will be excellent from a hardware perspective. Hopefully, this will help HTC all around, as they overall have great devices, but they just don't generate the excitement that devices like the S7 and G5 generate.

posted on 10 Mar 2016, 11:34

44. jas0n (Posts: 54; Member since: 01 Mar 2016)


as long as HTC makes a good phone and doesnt sandbag it so as not to cut into it's own flagship sales. and as long as they swap out premium materials for premium specs. im over the aluminum back fad.

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