Google is focusing on hardware that can make a big difference to the Android ecosystem.
The recent flurry of Google product launches could be part of a large-scale defense strategy. Sources interviewed by The Information say Mountain View CEO Sundar Pichai sees hardware as the best way to “protect” against the dangers of the ever-changing mobile market.
Google focuses on hardware
Sundar Pichai is concerned that Apple is taking market share away from Android partners like Samsung and competition regulators could reverse a long-standing deal that makes Google the iPhone’s default search engine, said Google assistant VP Sissy Xiao.
This may come at the cost of supporting non-Google products. While Android support remains unchanged, the American giant may be slowing down its investment in its car assistant and third-party hardware in general. Sissy Xiao and other executives were reportedly already working on transferring employees from Assistant and Google TV.
According to The Information, Google declined to comment. That being said, the company would have reasons to take that kind of risk with the hardware. If Android is not going to lose its dominance, the slightest loss of speed could mean a big loss in revenue, even if the iPhone search deal goes uncontested. In contrast, Xiao said the Android Automotive platform used by BMW, Volvo and other automakers is currently approaching $1 billion in revenue, a very small fraction of the $257.6 billion Google earned in 2021..
which could have big implications for the Android ecosystem
The big question will be whether Google can step up its hardware efforts enough to insulate itself from these potential problems. While Mountain View recently relaunched its smartphone lineup brilliantly with last year’s Pixel 6 and Pixel 7, it’s still too early to tell if sales have improved. In 2021, Google shipped 4.5 million smartphones, which is far from the market leaders. And if things are going really well with the giant’s plug-in speakers – second only to Amazon’s – the company has just released its first home smartwatch. It is also returning to the tablet market after a break of several years.
There are also concerns that Google has its own bookmarks. The information claims that Google continues to provide better services to its “premium”Android partners such as Samsung, OnePlus and Xiaomi. This could overshadow other brands that don’t have similar access to Assistant and other essential features. If you care about the health of the Android ecosystem in the long run, this shift in strategy may not sound very encouraging.