HTC, the Taiwanese handset-maker known for making Windows Mobile phones and the first Google (NSDQ: GOOG) Android device, is acquiring San Francisco-based lifestyle design firm One & Company Design (One & Co). Terms of the deal were not disclosed. One & Co. and HTC first began working together in 2006 on the HTC Touch Diamond, which received praise for its industrial design and use of materials. HTC’s Chief Innovation Officer Horace Luke said: “Design is key, it is why you love or hate something. Integrating iconic design into HTC products is an inspiring and dynamic challenge that requires a unique combination of consumer insight, creativity, innovation and an appetite to take risks; attributes that embody One & Co.”

One & Co will maintain its name and client base, which also covers a wide range of industries from footwear to snowboarding, furniture and housewares, but will continue to work with HTC, which has its North American headquarters in Bellevue, Wash. The choice to buy a design firm and not one of the many handset manufacturers that are for sale is interesting. Perhaps, the company feels going forward the race will be won in looks and creativity, rather than solely based on a phone’s components and engineering. Release.