Google's Pixel

The entire purpose of Google’s Pixel phones and Pixel Watch is to sell you software.

At an event on Thursday in Brooklyn, Google (GOOG, GOOGL) will introduce its most recent Pixel 7 and Pixel 7 Pro smartphones as well as its first-ever wristwatch, the aptly called Pixel Watch.

The show should feature a lot of discussion about how Google’s hardware outperforms products from rivals like Apple thanks to the company’s AI capabilities. The Pixel Watch will also provide the tech giant a chance to demonstrate why it paid $2.1 billion to acquire Fitbit in 2021.

However, experts claim that Google’s hardware strategy isn’t intended to undercut Apple’s (AAPL) sales or outwit its ecosystem partner Samsung. Instead, the focus is on demonstrating to large-scale producers what is achievable when the appropriate hardware and software are used together.

According to Tuong Nguyen, senior principal analyst at Gartner, “I think of the Google devices as loss leaders,” he told Yahoo Finance. “Hardware isn’t being produced just for the purpose of producing hardware. It is done to highlight their own expertise and services.

an extra benefit? Google’s hardware increases the number of people who sign up for its services and enables it to collect more information about how users interact with those platforms. Google can more effectively target you with advertisements the more it knows about how you use its services and the more information it can gather about your web searches.

According to Counterpoint Research, Google has been releasing its own smartphones since 2010, but it’s still not quite as well known as Samsung, which claims 21% of the worldwide market share, or Apple, which holds 16% of the market.

And that not only benefits Google but also, in time, companies like Samsung and its Android companions, while giving the impression that Apple is stagnant, at least in terms of software.

Google is a leader in software
The performance of Google’s earlier Pixel smartphones was never particularly noteworthy. Their cameras, at least in terms of component quality, lagged behind Samsung’s and Apple’s. The software prowess of Google is outstanding.

When Google’s Night Sight software for the Pixel was released in 2018, its low-light images outperformed the competition. In the years since, Google has pushed various software capabilities, such as calling tools that help you negotiate automated phone centre call lines and close interaction with Google Assistant. However, Google isn’t releasing these software updates to discredit manufacturers of Android-powered devices like Samsung. Google is instead attempting to show off the full capability of Android smartphones.

According to Ramon Llamas, research director for mobile devices and AR/VR at IDC, “this is all about displaying how the Android experience can be, or this is how the Wear OS experience can be, and here is how they can all function together in concert.”

There are other businesses using similar strategy than Google. If you’re looking for a large software distributor that created its own hardware to promote its products, look no further than Microsoft (MSFT) and its Surface series of products. With the intention of showcasing what Microsoft has to offer, the business releases its own laptops, laptop-tablet hybrids, foldable cellphones, and hybrid all-in-one desktop at a premium price.

With the exception of the Duo, each of those demonstrates how a simple design aesthetic and Microsoft’s Windows 11 operating system can combine to create genuinely appealing PCs. It also worked. You can, at least in part, thank Microsoft for the beautiful systems that manufacturers like Dell, Lenovo, HP, and ASUS are producing.

Not just appearances, either. Another factor is Google’s Tensor processor, which was created expressly for the company’s AI-based software.

Nguyen stated, “It’s about establishing an example for other vendors. “In this instance, Android is used by suppliers. I believe the entire Tensor chip was a statement to the effect that “Hey, here is why you need a specialised AI/ML processor in a personal device.

The Pixel Watch should adhere to the same principles, offering users dependable design and software designed to strengthen the Wear OS brand and encourage third-party hardware partners to consider new, intriguing ways to combine Google’s software and their own hardware.

greater Google data
Of course, Google’s primary business is in advertising. It also attempts to increase consumer usage of its range of services so that the Silicon Valley juggernaut has a large enough data set to effectively target you with advertisements.

Because of this, Google pre-installs its Maps, Gmail, Google Search, and Assistant apps on third-party Android smartphones. Additionally, it explains why Google paid Apple between $8 billion and $12 billion by the year 2020 to maintain its position as Safari’s default search engine. Additionally, it makes it much simpler to contact customers by installing those apps on its own smartphones.

It’s also a way to make sure you stick around for the long run with Google. Google aims to keep you on their platform and services, much as how Apple’s sizable ecosystem of devices and apps keeps users hooked on their products.

by Yahoo Finance’s tech editor, Daniel Howley. DanielHowley should be followed.

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