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Why Google Needs Gadgets (wired.com)

Google will tomorrow launch the next generation of its smartphone with the Pixel 2 and the Pixel 2 XL. At the same time, the company will reportedly introduce a new Chrome OS-based laptop called the Pixelbook, a small smart speaker called the Google Home Mini, and new hardware for the Daydream VR platform. David Pierce, writing for Wired tries to make sense of it: You'd think having dominated search and email, created Chrome and YouTube, plus a self-driving car project, a handful of save-the-world enterprises, and the greatest advertising business in the history of the universe would be enough to keep Google busy. You certainly wouldn't think the folks in Mountain View would suddenly feel the urge to get into the smartphone game, a remarkably mature market where nobody but Samsung and Apple makes any money, and where Google's already ubiquitous thanks to Android. [...] As they say, hardware is hard. It's a ruthless and low-margin business, but it's also an important one. Building gadgets in-house gives Google an opportunity to assert itself beyond what any of its partners can offer. More importantly, it gives Google a chance to control its destiny in an increasingly uncertain time. Depending on Samsung is a dangerous game. Galaxy products are the most popular Android phones by far, and the prime iPhone competition. But every year, you can feel Samsung leaning a little further away from Google. It built the Bixby assistant, which competes directly with Google Assistant, and gave Bixby prime placement on its phones. Samsung builds its own browser, email client, and messaging app, which seem utterly redundant unless Samsung's trying to wean its reliance on Google products. Samsung mostly eschews Daydream in favor of Gear VR, and has a home-grown smart-home platform competing directly with Nest, Android Things, and all the other Google connected-home products.

37 comments

  1. "Bought" YouTube by xxxJonBoyxxx · · Score: 3, Insightful

    >> created Chrome and YouTube

    BOUGHT YouTube. FTFY. You'd probably also find that a lot of Google gadget expertise (including talent) was purchased from elsewhere if you got inside the Googleplex...

    1. Re:"Bought" YouTube by xxxJonBoyxxx · · Score: 1

      >> how embarrassing if we thought google *had* created it

      If I was "David Pierce writing for Wired", I'd certainly be embarrassed. With a UID below mine, you should also remember the days when Slashdot was still about tech.

    2. Re:"Bought" YouTube by MangoCats · · Score: 2

      In the larger corporate world, the distinction between created and bought becomes less clear or important.

      In the act of acquisition, you often "rebrand" the acquired talent under the corporate identity. Sure, YouTube was initially developed outside Google, but many of the developers remained after the acquisition, and YouTube hasn't been a static entity since acquisition - what it is today is heavily shaped by Google.

      Just because some guy in a coffee shop sketches an idea on a napkin, and that idea goes on to be developed by a startup and that startup gets bought by a large corporation and that corporation develops and grows the idea into a much larger global business - doesn't mean that the corporation didn't bring the idea to you. All credit does not reside with the napkin sketcher.

      But, yeah, historically YouTube was pretty big before Google helped them to muscle out the competition.

    3. Re:"Bought" YouTube by Anonymous Coward · · Score: 0

      (foad)

      Oh the irony.

      You won't be missed.

    4. Re:"Bought" YouTube by sexconker · · Score: 2

      Given that Google ran an obnoxious "MADE BY GOOGLE" campaign for the Pixel and Pixel XL, when they were MADE BY HTC, I'd say yes, it's an embarrassment to Google. Google wants you to believe they are innovators, inventors, creative, etc. Mostly they just things. The vast majority of shit they develop on their own they kill off unceremoniously.

      Google made PageRank and an ad platform. Nearly everything else they purchased, and most of the things they purchased they've ruined or killed off. Even internally they fight. Why does Android have Hangouts (now no longer supported), Messages, Allo, and Duo (and Google Voice!) to compete with the chat/messaging experience on Apple's side? Why are they killing off the one app that did it all (Hangouts) in favor of 3 apps that do one piece each, and shittily at that? (Answer: Because Google is too big for its britches and can't manage its own projects, teams, and products properly.)

      So yes, pointing out the truth behind the facade Google projects is embarrassing to them. Google wants you to believe one thing when the opposite is true. They can't even get security updates pushed out to an OS they fully control! EVERY Android device should be getting security updates for 3 years at a minimum, and in a timely fashion. There is zero reason for carriers or OEMs to be involved. The vast majority of security updates in Android won't impact OEM modifications / apps anyway.

    5. Re:"Bought" YouTube by Anonymous Coward · · Score: 0

      So, they just things? Perhaps I should you in the fucking balls.

  2. horseshit by PopeRatzo · · Score: 3, Informative

    a remarkably mature market where nobody but Samsung and Apple makes any money

    Motorola makes money. Huawei makes money.

    --
    You are welcome on my lawn.
    1. Re:horseshit by thomst · · Score: 0

      PopeRatzo snorted:

      a remarkably mature market where nobody but Samsung and Apple makes any money

      Motorola makes money. Huawei makes money.

      You're correct, of course. Three things to keep in mind, though:

      a. This is tech journalism - a field wherein hacks, shills, and nincompoops are ubiquitous, and responsible, professional, actual journalists are thin on the ground.

      b. The "article" in question is a "think piece", which is journalese for "my opinion disguised as a news story" (which is approximately the same thing as a column - "my opinion", only without the disguise).

      c. Even the most prestigious news publications largely dispense with fact-checking these days. (It's an expense which makes no quantifiable contribution to the bottom line, so it's ipso facto dispensable, when the organization in question is run by MBAs.)

      Besides, everyone's entitled to their own "alternative facts" these days, remember ... ?

      --
      Check out my novel.
  3. Bright shinies by JohnFen · · Score: 3, Funny

    Google needs to be able to sell bright shiny objects to distract the average person from the fact that they have fully embraced evil.

    1. Re:Bright shinies by msauve · · Score: 1

      Google does bright shinies because Google has the attention span of a three year old.

      --
      "National Security is the chief cause of national insecurity." - Celine's First Law
    2. Re:Bright shinies by Captain+Splendid · · Score: 1

      Wow, that's like the most banal, underwhelming conspiracy theory ever. Bro, do you even internet?

      --
      Linux, you magnificent bastard, I read the fucking manual!
    3. Re:Bright shinies by JohnFen · · Score: 1

      Maybe that's because it's less a conspiracy theory and more an attempt to insult Google for being a really horrible company.

      Clearly a poor attempt either way, though.

  4. Phones are a feeder business by known_coward_69 · · Score: 1

    For a lot of companies their phones aren't supposed to be profitable, but to feed their other businesses. For Sony and LG it's to use up the glass left over from their TV and display factories and other parts they make. Why trash it when you can sell it. Samsung makes a lot of stuff and their phones send money to their CPU fabs and display factories.

    Apple is the only one who knows how to make money on phones as a stand alone business. But with Apple it seems like their business is just making you buy yet another device that runs some version of OS X

    1. Re:Phones are a feeder business by darkain · · Score: 1

      Apple's business is iTunes, or now the App Store. Their phones were initially built just like the iPods to feed into iTunes. Now they're built to feed into the app market. Apple is no different than the other phone producers.

    2. Re:Phones are a feeder business by biojayc · · Score: 2

      Apple's business is iTunes, or now the App Store. Their phones were initially built just like the iPods to feed into iTunes. Now they're built to feed into the app market. Apple is no different than the other phone producers.

      What? Apple is a hardware company. They make money selling hardware. Software is there to sell hardware. They are different than companies like Google, who are software/service companies that sell hardware to feed the dependency on their software/services. Microsoft is a software company (or was). Apple is most definitely a hardware company.

    3. Re:Phones are a feeder business by stabiesoft · · Score: 3, Insightful

      Apple is a design company. Foxconn is a hardware company.

    4. Re: Phones are a feeder business by Anonymous Coward · · Score: 0

      Google is a data company, full stop.

    5. Re:Phones are a feeder business by known_coward_69 · · Score: 1

      Not anymore. Itunes and all the apps and content is something like 20% of profits and growing faster than the hardware business.

      Apple like a lot of companies builds hardware to get you to buy high margin accessories like $150 headphones and the digital content. That's where the real money is made

    6. Re:Phones are a feeder business by Anonymous Coward · · Score: 0

      No, Foxconn is a manufacturer, which has no bearing on the fact that Apple is a hardware company.

      I know it seems that Slashdot has been in decline since forever but please, don't feel the need to help.

  5. It's none of those things by H3lldr0p · · Score: 3, Insightful

    Google, now Alphabet, is going for the digital monopoly. Complete and total vertical and horizontal integration.

    That's it. That's the sum total of why Google is doing this. It has nothing to do with Samsung, Apple, or anyone else. It never did and never will. Google wants to run everything digital through itself. It could care less about the rest of the internet for so long as you start at their gate and they can record when you left and re-entered. It knows it can't stop you from going to Netflix, Slingbox, Hulu, or anywhere else but it can damn sure make it have a nice spot on any number of devices you own. A nice little gateway that can record what you do and when you do it.

    It's not about "not being evil" or any such nonsense. It was always about being the first, last, and only place you go to get stuff done on the internet.

  6. Language is hard by Anonymous Coward · · Score: 0

    Google will tomorrow launch ...

    Seriously? When did we decide to replace straightforward English with "randomize the words, people will figure it out"?

    1. Re:Language is hard by tepples · · Score: 1

      When did we decide to replace straightforward English with "randomize the words, people will figure it out"?

      Probably an accident during construction of the ziggurat at Eridu (Old Babel), when the builders decided to replace Proto-Semitic with every other language family.

      Less flippantly:
      Some people speak English as a second language (L2). Because of generalization from their native language (L1), "Google will tomorrow launch" comes as naturally to them as "Google will soon launch".

  7. Part of the problem ... by Anonymous Coward · · Score: 0

    Samsung builds its own browser, email client, and messaging app, which seem utterly redundant unless Samsung's trying to wean its reliance on Google products

    Android is increasingly getting diluted, as every company wants their own branding, ads, and analytics.

    I have no interest in Samsung branded stuff, nor do I want the branded stuff of any OEM. I don't want a phone which is really just there to collect my personal information and show me ads. I want a phone which lets me control what an app can and can't do, without having the vendor embed shit I don't want and can't get rid of.

    If Google can't keep a vanilla version of the Android out there we can all access and not be held captive to the corporate branding which is making Android a pile of shit, Android itself it in deep trouble.

    The problem with companies making all of their own browsers and everything else, is it introduces potential security issues which will never be fixed, pointlessly fragments the market, and creates more shit which is never going to be supported as the vendor makes the device and then never maintains it. All so those companies can apply corporate branding, and inject their own crap to collect your data and maximize their revenue streams. Sorry, I'm not your revenue stream.

    If Google isn't going to keep the Nexus versions alive so we can choose to not get this vendor specific crap, then I'm going to permanently switch to iOS. At least it gives the ability to turn some of this crap off, but I'm pretty sure Samsung isn't going to let you disable their ads and other shit.

    I fear mobile devices are becoming a horrible example of crapware, vendor lock in, and fragmentation. In which case I'll go back to a feature phone that isn't full of all of this garbage.

    1. Re:Part of the problem ... by desdinova+216 · · Score: 1

      based on the current version, The Pixel phones are similar to the Nexus Line

  8. Google is like Microsoft 2.0 by TheZeitgeist · · Score: 1

    Google is like Microsoft in having two great franchises - email and search - that are like huge cash cows, just like Windows and Office. And like Microsoft, Google takes those huge piles of cash from their winners and throws it onto the dumpster fire of their money-losers. This would include stuff like their social network, their hardware business (they even aped Microsoft ruining Nokia by buying and ruining Motorola), and their vaporware self-driving cars. They also are going down Microsoft's path flailing for long-lost clarity through re-orgs. Google turning into "Alphabet" is latest example; before that it was The Culling that went on at Google Labs along with showing Marissa the (cold shoulder) door.

    1. Re:Google is like Microsoft 2.0 by Hognoxious · · Score: 1

      Google is one huge rambling halo effect. Their search engine was good and by chance arrived just as all the others were turning shit of their own volition. I actually remember when Altavista was my go-to for search.

      Pretty much everything they've produced since has been shite or unusable. If the wind blows fair and they manage to produce something that's almost mediocre they dump it after a year.

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
    2. Re:Google is like Microsoft 2.0 by TheZeitgeist · · Score: 1

      +1 Alta Vista. That brings back the memories. Like DEC itself and their awesome Alpha crocs it is sorely missed to this day.

  9. Re: Gun control NOW. by Anonymous Coward · · Score: 0

    His rant makes him sound stupid as shit. He changes his stance because he witnessed this? What? I'm so confused. Of course a person with a legal gun couldn't of done anything, the dude was 32 stories up in a fucking window.

    The argument that a person with a legal gun makes the situation worse is only true in certain scenarios.

  10. looking up infosuk on alphabet.com by Anonymous Coward · · Score: 0

    sucking up to everything & spewing it back at us in some deceptive perfect balance mutation form fed fashion.. more of a gottiesque invasion on our waning wholesomeness than a 'business'? cease fire stand down,, there are moms & babys in every one of our towns... look us up..

  11. This article again? by Anonymous Coward · · Score: 0

    How many times do these tech writers regurgitate the same bullshit over and over? Its pretty clear they are writing fluff prices or are being paid to write about this stuff by the company in the article. Google has tried and tried and tried to build hardware. It has failed on a monumental level. Pixel phones are cool to talk about, but they don't sell in meaningful quantities. They are made by HTC anyway, not Google. Google purchased HTC because why not. They also purchased Motorola to do the same thing and have tried over and over again to sell other peripherals not related to search only to find people underwhelmed by the product or to see Google abandon the project. What is really different about Motorola vs. HTC? Motorola had a much larger phone business than HTC and it still failed under Google leadership. Google will always have some hardware on the market, but like Microsoft, won't sell enough of it to truly diversify their business. Its like Microsoft making mice and keyboards and tech writers claiming that without this hardware Microsoft is a one trick pony. Microsoft never made any legitimate revenue off peripherals, and Google will never make any meaningful money off hardware like phones, glasses, speakers, chrome casts, etc. I see the appeal from Google's viewpoint. They want a standard piece of hardware that they can test and control their software on to provide an example for other OEMs to follow. Bu the issue here is Google provides the same shitty support on their devices as the OEMs. So what is the difference? Not preloading shitty software? Not skinning the device? THAT'S your idea of differentiation? boring. Utter shit. also-ran. I honestly feel bad for people who can't get updates past a hard-set two-year mark. Google is a first class advertising company. They do a lot of research in medicine, AI, and driving. But they don't make their own hardware. they don't control their own chips. And if they got serious about security, their marketshare would shrink because prices would go up 30%. They don't care about hardware. They care about people doing searches, and right now, everyone searches on their phone.

    Up next by these same writers: Why people will stop buying iPhones and how Apple is doomed because they don't sell a $200 phone. Or Why Apple is doomed because they only derive 65% of their revenues from a single source (vs. Googles 90%). Its just paid-for rubbish.

  12. Stay away from gadgets! by nospam007 · · Score: 1

    ...unless you are a Chinese kid making them.

  13. I thought google gadgets died by bugs2squash · · Score: 1
    --
    Nullius in verba
  14. Cover Your Arse by Anonymous Coward · · Score: 0

    Samsung needs to cover its arse in case Google becomes a new Apple. They are nowhere near challenging, just keeping an option open.

  15. People are the product by Anonymous Coward · · Score: 0

    For Google (and most digital companies), people are its product. The phones, browsers, and IoT devices are just how it keeps track of its inventory.