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Google Plans Cheaper Smartphone To Draw Users Into Internet Empire (nikkei.com)

Google plans to unveil its first lower-priced smartphone this year as part of an aggressive push into hardware that it hopes will draw more users into its ecosystem, Nikkei Asian Review reported Wednesday, citing people familiar with the matter. From a report: The U.S. internet giant is moving quickly to exploit the troubles currently besetting Apple, which has suffered disappointing sales of its new premium iPhone as consumers migrate to cheaper models and global smartphone sales tumble, industry sources say. Google's new smartphone will be its first non-premium model aimed at price-sensitive customers and those in emerging markets.

It is expected to be priced lower than Apple's cheapest iPhone, the XR, which starts at $749. The latest model in Google's own Pixel range, released last October, started at $799. Midrange to highend phones are priced at between $150 and $700, while low end models sell for less than $150, industry sources said. The new phone will be the spearhead of Google's drive to expand the hardware using its operating systems. New products planned for this year include smart speakers, wearables and web cameras, sources familiar with the company's plans told the Nikkei Asian Review. Google also plans to launch a new premium phone in its Pixel range, as usual.

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  1. What happened to their previous phones? by shess · · Score: 5, Interesting

    Their Nexus 4 and Nexus 5 lines weren't too expensive. Except they didn't make enough to satisfy demand. Then they decided it would be more fun to make phone that cost $600 to $1000. Somewhere in there they got rid of Motorola, who now makes decent phones like the X4 selling for decent prices like $300 (oops, $250, oops, $200, oops, $150).

    I was working there when they acquired Android, and I remember being really chuffed that they'd be able to bring decent software to the masses rather than skimming off the top - so I was pretty salty about it when they decided they're rather join the feeding frenzy at the top. Making an amazing $1k phone isn't rocket science, you just need to avoid errors, the existing companies like Samsung and Sony can push the boundaries there. Making a great phone for $200 is where the real challenge is, and it bothers me that Google simply abdicated that position. Instead of co-evolving hardware and software to make a tight fit at $200, they're off bloating things up with elaborate camera systems and voice recognition for the high end, then getting upset that the low-end devices ship with an older Android version.