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Google Moves Pixel Launch To August

Google plans to employ its in-house Tensor processor and AI integration to outperform Apple’s iPhone, moving the Pixel debut date to August.

Take Away Points:

  • Google moved the release of its Pixel smartphone to August in order to gain market share ahead of Apple’s iPhone debut.
  • Google’s approach combines artificial intelligence (AI) with hardware and software, boosting Pixel’s attractiveness with in-house tensor processors and AI features like Night Sight.
  • Google’s coordinated strategy under Rick Osterloh is to improve its ecosystem and compete more successfully in the hardware sector, despite difficulties with Android partners.

Google’s Hardware Initiative

Alphabet Inc.’s Google is making a significant move in the hardware marketaiming to outshine Apple’s annual iPhone launch. The company held its hardware event on Tuesday, with Rick Osterloh, a long-time executive and former president of Motorola, taking center stage. Osterloh, who joined Google in 2016, now leads the unified teams developing hardware and the Android operating system. This reorganization has expanded its influence within the company, signaling Google’s long-term commitment to competing in the hardware space.

Google has moved up its annual flagship Pixel smartphone launch to August from October, preempting Apple’s iPhone debut. This strategic timing aims to capture attention during a typically quiet period for the industry. “For the first time, I feel Alphabet is taking its hardware and the smartphone side pretty seriously,” said Mandeep Singh, an analyst with Bloomberg Intelligence. “That is a reflection of Rick’s leadership and what he has done.”

The company has invested heavily in its Pixel line, including designing its own chip and sponsoring NBA playoffs games. Despite these efforts, Google continues to trail Apple at the high end of the market, with Samsung Electronics Co. dominating much of the rest of the segment in the US. However, Google’s Pixel phone sales are starting to show improvement.

AI Integration and Strategy

Google’s strategy involves tying together the development of hardware, software, and services, echoing Apple’s successful approach. The latest wave of generative artificial intelligence (AI) features has the potential to revive consumer interest in smartphones. Samsung has positioned its Galaxy lineup as an AI-first offering, and Apple has signaled its intention to sell iPhones based on new AI features it calls Apple Intelligence.

Google’s Pixel line has stood out due to its embrace of AI in its camera software, delivering groundbreaking advancements like Night Sight. The development of the Tensor mobile chip, designed in-house, gives Google a differentiating feature against other Android contenders. By holding its hardware showcase ahead of Apple’s event, Google is “frontrunning Apple and also making a statement that we are likely way ahead of what Apple will show for the iPhone 16 at least,” Singh said.

Ben Wood, Chief Analyst at CCS Insight, noted, “The scope of Osterloh’s role is considerable. It not only applies to Android but also to other key platforms, such as Chrome. It could signal the realization by Google that it needs a more cohesive approach across platforms, particularly as the AI ​​battle intensifies.”

Market Dynamics and Challenges

Google’s strategy to integrate AI into its hardware offerings aims to capitalize on the current push to monetize AI through devices. However, this approach presents challenges, particularly in maintaining relationships with hardware giants like Xiaomi Corp. that rely on the Android operating system. Android President Sameer Samat emphasizes the importance of strict information-sharing boundaries to ensure projects with the Pixel team and partners like Samsung don’t overlap.

“It allows us to take some of our AI innovation and actually bring it to more of the ecosystem more quickly,” Samat said.

Osterloh has been proactive in maintaining partnerships, traveling to South Korea to meet his Samsung counterpart, TM Roh, and attending Samsung’s Unpacked product launch event in July. He promised to bring Google’s AI-powered experiences “to all Android devices.” This collaboration aims to ensure smooth integration of Google’s AI innovations across the Android ecosystem.

Despite the complexity of switching from Apple to Android devices, any gains Google makes in hardware are likely to come at the expense of Android partners. Singh noted that this could pressure those brands to “move faster” and ultimately strengthen Google’s ecosystem.