Apple is undoubtedly the market leader in the the smartphone industry with the iPhone but they should watch their back because Google is hot on their heels. Google is stepping foot into the smartphone industry with their newest phone, the Google Pixel. There is no better time for Google introduce their new flagship phone as the market runner-up, the Samsung 7 Note, literally burst into flames, having “caught fire as many as 112 times after only one month on sale” (Hollister) [1]. The Pixel has the potential to take the number-one spot and cause a shock wave to the smartphone industry.
What the Google Pixel is expected to look like. Image link: http://i-cdn.phonearena.com/images/articles/259412-image/google-pixel-and-pixel-xl.jpg
The Pixel’s specifications and new features certainly make it a candidate to be the iPhone’s biggest rival in 2017. The Pixel’s specifications not only match but in some cases outweigh their Apple counterparts. The Pixel competes with the iPhone 7 with a better camera, a longer lasting battery, and a higher resolution screen [2]. New features of the Pixel include the Daydream, a virtual reality experience made possible by the Pixel’s ultra HD screen; and Google Assistant, a voice-activated digital assistant similar to Siri.
Google was traditionally a tech company that focused exclusively on making software. They are most well-known for their software services such as Google Search, YouTube, and Gmail. The advantage of working solely in software is that marginal costs are thin which in turn gives the company a higher profit margin. However since 2002, Google has begun to develop hardware as well [3]. It may seem counter-intuitive for Google to move into making hardware but it was a necessary move for them because they had to find a way to extend their software services to their customers.
Google’s ventures into the hardware industry is an example of the company using a vertical integration strategy in the forward direction. Previously, Google had to rely on established hardware companies such as Samsung and Apple to make their services more accessible to users. These hardware companies have power over Google because they “get to decide which software comes pre-loaded onto their devices” (Vara) [4]. By making their own devices, Google eliminates the external hardware companies and is able to effectively offer users the full extent of their software services through their own hardware.
In Apple vs. Samsung: Competitive strategy [5], written by fellow COMM 101 blogger Makeda Adefris, she explains about how vertical integration can create a competitive strategy for tech companies. Samsung goes backwards in the supply chain and spends “a generous amount of money investing on […] capital expenditures” (Adefris) while Google goes forward in the supply chain to increase accessibility to users.
Word Count: 443
References
1. https://www.cnet.com/news/why-is-samsung-galaxy-note-7-exploding-overheating/
2. http://www.mirror.co.uk/tech/google-pixel-price-release-date-8869704
3. https://www.google.com/about/company/history/
4. http://www.newyorker.com/business/currency/googles-software-sell-for-hardware
5. https://blogs.ubc.ca/makeday/2016/10/02/apple-vs-samsung-competitive-strategy/