At an event on Thursday in Brooklyn, Google (GOOGL stock) will introduce its most recent Pixel 7 and Pixel 7 Pro smartphones and its first-ever wristwatch, the aptly called Pixel Watch.

The presentation should feature a lot of discussion about how Alphabet Inc Class A’s (NASDAQ:GOOGL) hardware outperforms products from rivals like Apple thanks to the company’s AI capabilities. The Pixel Watch will also provide the tech giant a chance to demonstrate why it paid $2.1 billion to purchase Fitbit in 2021.

However, analysts claim that Google’s hardware approach isn’t intended to undercut Apple’s (AAPL) sales or outwit its ecosystem partner Samsung. Instead, the focus is on demonstrating to large-scale producers what is achievable when the appropriate hardware and software are used together.

According to Tuong Nguyen, senior principal analyst at Gartner, “I think of the Google (GOOGL stock) devices as loss leaders,” he told Yahoo Finance. “Hardware isn’t being produced only for the purpose of producing hardware. It is done to highlight their expertise and services.

An extra benefit? Google’s hardware increases the number of people who sign up for its services and enables it to collect more information about how users interact with those platforms. Google can more effectively target you with advertisements the more it knows about how you use its services and the more information it can gather about your online searches.

According to Counterpoint Research, Google has been releasing its smartphones since 2010. However, it’s still not reasonably as well known as Samsung, which claims 21% of the worldwide market share, or Apple, which holds 16% of the market.

And that benefits Google and, in time, companies like Samsung and its Android companions while giving the impression that Apple is stagnant, at least in terms of software.

Google (GOOGL stock) is a Leader in Software

The performance of Google’s earlier Pixel smartphones was never particularly noteworthy. Their cameras, at least in terms of component quality, lagged behind Samsung’s and Apple’s. The software prowess of Google is outstanding.

When Google’s Night Sight software for the Pixel was released in 2018, its low-light images outperformed the competition. Thanks to its advanced software, Google was functioning on a new level.

In the years afterward, Google (GOOGL stock) has pushed various software capabilities, such as calling tools that help you negotiate automated phone center call lines and close interaction with Google Assistant. However, Google (GOOGL stock) isn’t releasing these software upgrades to discredit manufacturers of Android-powered devices like Samsung. Google is instead attempting to show off the full capability of Android smartphones.

According to Ramon Llamas, research director for mobile devices and AR/VR at IDC, “this is all about displaying how the Android experience can be, or this is how the Wear OS experience can be, and here is how they can all function together in concert.”

Other businesses are using similar strategies to Google. Looking for a large software distributor that created its hardware to promote its wares, look no further than Microsoft (MSFT) and its Surface series of devices. To showcase what Microsoft has to offer, the business releases its laptops, laptop-tablet hybrids, foldable cellphones, and hybrid all-in-one desktop at a premium price.

Except for the Duo, each demonstrates how a simple design aesthetic and Microsoft’s Windows 11 operating system can combine to create genuinely appealing PCs. It also worked. You can, at least in part, credit Microsoft for the beautiful systems that manufacturers like Dell, Lenovo, HP, and ASUS are producing.

Not just appearances, either. Another factor is Google’s Tensor processor, created for the company’s AI-based software.

Nguyen stated, “It’s about establishing an example for other vendors. “In this instance, Android is used by suppliers. I believe the entire Tensor chip was a statement to the effect of “Hey, here is why you need a specialized AI/ML processor in a personal device.

The Pixel Watch should adhere to the same principles, offering customers dependable design and software designed to strengthen the Wear OS brand and encourage third-party hardware partners to consider new, intriguing ways to combine Google’s (GOOGL stock) software with their hardware.

Greater Google data

Of course, Google’s primary business is in advertising. It also attempts to increase customer usage of its range of services so that the Silicon Valley juggernaut has a large enough data set to target you with advertisements effectively.

Because of this, Google pre-installs its Maps, Gmail, Google Search, and Assistant applications on third-party Android smartphones. Additionally, it explains why Google paid Apple between $8 billion and $12 billion by 2020 to maintain its position as Safari’s default search engine. Additionally, it makes it much simpler to contact customers by installing such apps on its smartphones.

It’s also a way to make sure you stick around for the long term with Google. Google (GOOGL stock) aims to keep you on its platform and services, like Apple’s massive ecosystem of gadgets and applications that keeps people hooked on its products.

Featured Image:  Megapixl @ Twindesign

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