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Apple faces new competition as Google strengthens Android XR ecosystem: Details

This partnership between Google and HTC signals a new era of innovation in XR technology, setting the stage for an intriguing battle in the world of virtual and augmented reality.

Written By: Saumya Nigam @snigam04 New Delhi Published : Jan 24, 2025 16:22 IST, Updated : Jan 24, 2025 16:22 IST
Android XR
Image Source : FILE Android XR

Google has entered into a significant USD 250 million deal with HTC to acquire its XR (Extended Reality) headset unit. This bold move has been taken to challenge Apple’s dominance in the VR and AR market. The Taiwanese tech giant confirmed the news on January 23, stating that the deal is expected to conclude in the first quarter of this year. This is not the first collaboration between the two companies; HTC previously sold its smartphone operations to Google in a USD 1 billion deal in 2017.

HTC’s legacy and transition

Once a global leader in touchscreen smartphones, HTC experienced a downturn after the rise of Chinese manufacturers, similar to Nokia and Blackberry.

The 2017 deal with Google signalled a shift in HTC’s focus, and now, with the XR unit sale, the company is further realigning its strategy. HTC will retain non-exclusive rights to its intellectual property, allowing it to use the technology in the future.

Strengthening the Android XR ecosystem

Google has expressed confidence that this deal will serve as a cornerstone for developing the Android XR platform, enhancing its ecosystem of headsets and smart glasses. HTC’s Vice President, Lu Chia-te, emphasized that this agreement is not an exclusive buyout, leaving room for future collaboration and innovation from HTC.

Competition heats up in the XR market

Apple and Meta currently dominate the XR landscape, with Apple holding a significant 55.2% market share, according to IDC reports. The Apple Vision Pro is set to gain even more traction in 2024, while Meta’s Quest 3 continues to present tough competition. Google’s entry into the market through this HTC deal is expected to intensify the rivalry, creating an exciting and competitive environment in the XR space.

 

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