Alphabet Inc (NASDAQ:GOOGL) Targets Rivals With Latest Product Offering

Alphabet Inc (NASDAQ:GOOGL) has unveiled its latest line of products that aim to take jabs at rivals such as Apple Inc. (NASDAQ:AAPL), Facebook Inc (NASDAQ:FB) and Amazon.com, Inc. (NASDAQ:AMZN).

The products which include the Google Pixel handsets, the Google Home speakers, and the Daydream VR, which address segments that are dominated by its rivals. However, the three products also highlight the company’s agenda of making sure that its search engine business which is its main revenue source remains dominant.

Alphabet’s product offering aims at keeping customers from migrating to rival platforms

Alphabet relies on search engine advertising to gain revenue and for it to earn ad revenue, the firm requires lots of users on its platforms. There is thus the need to make sure that customers that generate ad revenue are not poached by other firms. Many might perceive the company’s initiative to produce its own handsets, VR headset, and speaker powered by a digital assistant as copying the likes of Apple, Amazon, and Facebook. However, it is a smart move aimed at protecting the ad business.

Venturing into the most dominant industries

A close analysis at what is hot in the market reveals that smart home technology, Artificial intelligence, virtual reality and the mobile are the most competitive and future-oriented industries. Google’s products also happen to cover these industries and this is not by coincidence. All the products represent the new ways that users connect with people and how they consume media. Google is aware of this and thus the move to have an influence in each of these industries or markets.

The Pixel handsets, for example, are said to be Alphabet’s answer to the Apple iPhone handsets. Perhaps they may compete in the same segment. Alphabet’s idea is to provide them as a platform that will fully support its advertising business as stated by Brian Fitzgerald, an analyst at Jefferies.

“Designed to compete more directly against devices like the iPhone, the Pixel devices … will serve as a top-tier hardware platform to showcase and drive usage of Google’s best-in-class software services.”

Alphabet stocks closed the latest trading session at $128.19, down by $0.58 or 0.45% compared to the value of the stock in the previous close.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with our FREE daily email newsletter.

Tags: , , , , , , ,

Leave a Reply

Be the First to Comment!

Notify of
avatar

wpDiscuz