news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

Zhitong Finance learned that Google, a subsidiary of Alphabet (GOOGL.US), will hold a new product launch conference at 13:00 EST on Tuesday. In the upcoming hardware launch conference, Google is trying to surpass Apple's (AAPL.US) annual iPhone launch conference and put long-time executive Rick Osterloh in the spotlight. Osterloh is the former president of Motorola and joined Google in 2016. This year, Google unified the hardware development team and the Android operating system development team under his leadership, and Osterloh will be responsible for Google's first major product launch. The reorganization expands Osterloh's influence in the company and shows that Google intends to compete in the hardware field for a long time.

Google brought forward the release of its annual flagship Pixel smartphone to August from October, ahead of Apple Inc.’s next iPhone, grabbing attention during a typically quiet period for the industry and signaling a more aggressive push into consumer devices.

“For the first time, I feel like Alphabet is taking its hardware and smartphone business very seriously,” said Bloomberg analyst Mandeep Singh. “That’s a reflection of Osterloh’s leadership and what he’s done.”

Google has invested heavily in its Pixel line, designing its own chips, sponsoring NBA playoffs and supplying devices to superstars like Giannis Antetokounmpo. Yet it still lags behind Apple at the high end of the market. And Samsung Electronics has locked up much of the remaining market in the U.S., leaving little room for a competitor, even one as influential as Google.

The intense competition has done little to slow Osterloh’s rise within Google, giving him unilateral control over the company’s consumer products, in an effort to ensure Google can capitalize on its current efforts to monetize artificial intelligence through devices.

"The scope of Osterloh's role is quite large," said Ben Wood, principal analyst at CCS Insight. "It applies not only to Android but also to other key platforms such as Chrome. This could be a sign that Google realises it needs a more cohesive cross-platform approach, especially as the battle for AI intensifies."

Singh said the latest wave of AI features has the potential to revive consumer interest in smartphones and get them to upgrade their devices more regularly. Samsung Electronics positioned its Galaxy line as "AI-first" this year and reported double-digit sales growth for the Galaxy S24 series over its predecessor. Apple also hinted that it intends to sell iPhones with a range of new features powered by Apple Intelligence.

Early in Osterloh's tenure, Google launched the Pixel line, which stood out for its use of artificial intelligence in its camera software. It led to groundbreaking advances such as Night Sight, a photography mode that was copied by the entire mobile industry, including Apple. Google's development of its own-designed Tensor mobile chip set the company apart from other Android competitors.

Singh said that by holding its hardware showcase a month before the iPhone maker's biggest annual event, Google is "getting ahead of Apple and also indicating that we are likely to be at least significantly ahead of what Apple shows on iPhone 16." He added that Google is at least six months ahead of Apple, which has invested less in artificial intelligence than some of its big tech peers for years.

Google's strategy -- combining the development of hardware, software and services -- has similarities to Apple's successful approach to designing devices. However, as Osterloh seeks to capitalize on opportunities presented by artificial intelligence, he faces a long-standing challenge for Google: taking on Apple without threatening key relationships with other hardware giants that rely on the Android operating system.

Android president Sameer Samat said in an interview that his team maintains strict boundaries around information sharing to ensure that projects with the Pixel team and partners like Samsung don't bleed into each other. However, Samat said the team led by Osterloh will pave the way for Google AI to move from the labs to Android partners. "This allows us to bring some of our AI innovations to more parts of the ecosystem faster," he added. "It's all about accelerating our efforts in AI and improving the consumer experience."

Soon after taking on his new role, Osterloh traveled to South Korea to meet with Samsung's CEO to ensure the partnership and collaboration between the two companies was on track. He also attended Samsung's Unpacked product launch event in July, promising to bring Google's AI experiences "to all Android devices."

Singh said any gains Google makes in hardware will likely come at the expense of its Android partners, which in itself could be a beneficial force because of the complexity of switching from Apple to Android devices. Singh said it would force those brands to "move faster." "Overall, I think this will only strengthen the Google ecosystem," the analyst said.