Google's Pixel 4 Phone, Smart Speakers Nod to Hardware Hopes -- Update
16 October 2019 - 9:18AM
Dow Jones News
By Rob Copeland
Google showed off additions to its line of smartphones, wireless
earbuds and other personal electronics in its latest attempt to
recharge a business-segment laggard.
The products, shown in New York on Tuesday, run the gamut in
price and function, including a flagship phone armed with radar to
sense a user nearby as well as a lower-price version of Google's
laptop-tablet hybrid. They show Google placing its chips across the
board, hoping for more hits to pair with its popular Home smart
speakers.
Though Google, a unit of Alphabet Inc., is a dominant force in
online search and advertising, it occupies a much weaker position
in hardware among its tech peers. Despite its standing, Google has
been willing to spend billions of dollars on building its hardware
business in addition to other nascent ventures.
Google hardware chief Rick Osterloh, in an interview after the
event, repeatedly referred to Google as a "startup," given its
short history in manufacturing its own devices. Google's first
smartphone, 2010's Nexus, was manufactured by HTC Corp.
The company unveiled its first homemade products in 2016, and
the stretch since has included the well-reviewed Pixel phone as
well as less successful endeavors such as a virtual-reality
headset.
Alphabet doesn't detail financial results for Google hardware.
"This is something that takes decades to build a really robust
business," Mr. Osterloh said. "We expect to be at this for the very
long term."
During Tuesday's showcase event, Google executives struck a
low-key tone, with few canned applause lines. Much of the aplomb
centered around Google's latest smartphone, the Pixel 4, as
executives highlighted enhancements in camera technology,
particularly for taking low-light snapshots.
The previous Pixel phone model earned strong reviews, if not
sales, for its camera and streamlined design.
Google executives also talked up a technology called Soli, a
motion-sensing radar addition to the front of the Pixel phone. A
promotional video showed a customer silencing a call by waving her
hand at the screen.
One new Pixel color is called "Oh So Orange," reflecting the
whimsy Google tries to infuse in marketing. The phone starts at
$799, the same as last year, and goes on sale this month.
In the smartphone market, Google trails Apple Inc. and Samsung
Electronics Co., both of which have dominated shipments in the U.S.
and world-wide in recent years. Microsoft Corp., Amazon.com Inc.
and Facebook Inc. have also ramped up spending in recent years on
new consumer products.
On an earnings call earlier this year, Google Chief Executive
Sundar Pichai blamed disappointing sales of last year's Pixel phone
for acting as a drag on overall company results. The Pixel line has
5% market share in the U.S., according to researcher Strategy
Analytics, and an even smaller share abroad.
A new generation of wireless earbuds due out next year, called
the Google Pixel Buds, will be able to pair with a device as
distant as the far end of a football field.
While competitors have some similar features, Google pitches its
ability to link devices and functionality across products including
Nest, a maker of internet-connected home electronics that the
company bought for $3.2 billion in 2014. The popular Google Home
Mini was renamed the Nest Mini on Tuesday. Google placed under the
Nest name an upgraded mesh router that now includes accessories
that double as smart speakers, an encouragement to spread the
speakers into more rooms of a house.
"Our products don't have to be about the glitz," said Rishi
Chandra, general manager of Google Nest, after the event. "It's
about: How does it do meaningful stuff for you?"
Acquisitions such as Nest might receive additional scrutiny
following recently announced federal and state antitrust
investigations into Google's business. Google overhauled its
Washington lobbying operation earlier this year and has pushed the
message that its products increase consumer choice. In a July
securities filing, Alphabet said it continues to engage with
regulators world-wide regarding competition matters.
Write to Rob Copeland at rob.copeland@wsj.com
(END) Dow Jones Newswires
October 15, 2019 18:03 ET (22:03 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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