Google announced its very own smartphone – the Pixel and Pixel XL – at the Made By Google event along with other hardware on 4 Oct. With the Pixel, Google has entered that premium smartphone segment which was so far the playing ground of Apple and a lot of Android, and in effect Google’s, partners such as Samsung, LG, Sony, Huawei and others. It wouldn’t be wrong to say that Google phone partners must’ve been caught offguard after Google decided to go on its own. But is it really a bad thing?
After-effects of Pixel
“With the launch of Pixel range of smartphones, Google has embarked upon tightening its grip on the Android ecosystem. With this Google is now directly competing with its smartphone hardware partners. However, we feel in the long run there will not be any conflict with these partners,” said Navkendar Singh, head of mobile devices research, India and South Asia at IDC India.
According to him this move by Google should be seen as Google making the first version of the hardware itself and integrating the software and hardware vertically with the express objective of creating the best possible Android experience. It is only a matter of time before its hardware partners start offering similar features in 2017.
Anshul Gupta, research director at Gartner, says that with the Pixel, Google is trying to make a statement that it is now serious about hardware and software, and just like Apple it wants to have a control over both.
Gupta feels that Pixel won’t really compete with the likes of Apple or Samsung with the first version just yet. “There will be some repercussions of this launch, but not that Google Pixel is really going to compete with the likes of Apple or Samsung. It’s more about how you are going to sell the device. With the Nexus, only the online channels were used for selling. Samsung and Apple have been investing in developing their offline channels, so unless you have presence in the retail shops in India, there will be a small proportion of people who will opt for the Pixel.”
Croma and Reliance Digital seem to be the only offline partners that Google announced would stock Pixel in its availability slide. But Apple and Samsung devices are sold at a lot more outlets, thanks to its years of investments in offline channels.
According to Raja Lahiri, partner Grant Thornton India LLP, it is too early to say if the Pixel launch would really shake up the market as Pixel has to prove itself in the real world. “There is no doubt that existing players will feel the heat as Google Pixel is launched, because it adds to the competition. A lot will depend on what is the differentiating factor on the phone compared to existing players.” said Lahiri.
Singh also touched upon the importance of channels and relationship with carriers, while saying that the Pixel would compete with flagships from Apple and Samsung. “Since now Google is becoming a full fledged hardware player, it has to now manage inventory, build relationships with carriers, develop channels, sourcing components, making supply chain deals and managing distribution, all on its own. This can take a lot of time and effort,” he said.
What about Google Home?
The other star product of the evening was clearly Google Home, Google’s $129 answer to Amazon’s Echo. According to Gupta, Echo and Home have different user interface approaches. “Voice initiated UI on Alexa is mature in terms of usage and also Echo uses around seven microphones, as compared to two on the Home. Lot of things are yet to be seen in real world cases,” said Gupta.
Amazon Echo has just about started selling in the UK, apart from being available for the US. Conversational home assistants belong to a relatively new product category. Singh feels that there is enough scope for both Amazon and Google to exist in this space and grow and innovate. According to Gupta, the market is too nascent for these products and there will definitely be more vendors coming into this space, including Apple.
“Google Home’s smaller size, more aesthetic design, high degree of customisation, powered by Google Search, ability sync to multiple devices and integration with smart home ecosystem platform, it will be interesting to see how it holds up against Alexa which has lead time of almost a year in the market and more affordable Alexa Dot,” said Singh.
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