Over the past couple of years, Google has significantly improved its hardware efforts. Apart from smartphones, the company has also unveiled high-end wireless earbuds, smart speakers, a smartwatch, a tablet, media streaming sticks, and even Wi-Fi routers. And it looks like Google is doing this because it's afraid of Apple's grip on the market and Samsung's declining popularity.
According to Google's internal document unearthed by The Information, the company is worried that more people are switching from Android smartphones to iPhones, especially in more mature and premium markets like the US. Apple is stealing market share from Samsung, thereby affecting the whole Android segment. Moreover, due to antitrust issues, Google might also lose its position as the default search engine in Apple's Safari web browser on computers, laptops, smartphones, and tablets.
Google is worried about Samsung's decline in premium markets, so it is doubling down on its own hardware
As a result, the company is worried that its revenue from the mobile ads business might take a drastic hit. Hence, the company has reportedly decided to double down its efforts with hardware products so that it can create an Apple-like ecosystem. Google is said to have moved a lot of engineers and product development staff working on non-Google hardware to work on Google-branded devices. This strategy is said to have been chosen by Google CEO Sundar Pichai.
It is also reported that the company has reduced its development efforts for Google Assistant on third-party devices, including cars. Google's Android Automotive OS, which is adopted by BMW and Volvo, generates revenue of around $1 billion, but that's too small to matter for Google. Hence, Hsiao, VP of Google Assistant, said she has considered moving some headcount away from the automotive development efforts.
Google might spend more time developing Pixel-exclusive features in the future
The report further elaborates that Google might not spend as much time developing Android (and its derivative operating systems) as it did in the past. Instead, the company might be planning to spend more effort creating Pixel-exclusive software features. The internet services giant has reportedly chosen OnePlus, Samsung, and Xiaomi as premium Android OEMs. It might not give as much attention to other OEMs as it did in the past.
If this information is correct, things are not looking so good for the Android ecosystem. Google thrived because of Android and ChromeOS operating systems. It earned licensing fees from all the Android devices sold with Google Mobile Services onboard. In the future, though, non-premium Android brands might face many difficulties if Google doesn't give them enough attention. And there are already sanctions on Chinese brands due to US-China tensions.
Samsung should be prepared and improve its software and services to become less dependent on Google
Since Google is infamous for launching a lot of products and quickly killing many of them (Chrome apps, DayDream, and Stadia), it would be wise for Samsung to keep its software services and platforms alive. Tizen is the world's most popular smart TV OS, and SmartThings is a huge name in the IoT and smart home segment. The South Korean firm needs to keep improving them, along with Bixby, Knox, and Samsung TV Plus.
We wish Microsoft to come back to the smartphone market with a mobile version of Windows OS, but it's too late for that. What do you think about Android's future? Let us know in the comments section below.
