Google’s Launch Night In: Moving In the Right Direction, But The Competition Got There First
Summary
Google launched a new TV device, smart speaker, and a pair of new smartphones. All appear to be solid values, but just catch Google up to where the competition already is. Google’s mobile hardware is moving in the right direction, but the competition may get there first. Google’s position in the U.S. market was initially constrained by high prices and limited carrier availability. Google has rectified those problems and is focusing on more affordable options. The Pixel 4a is a tremendous value. However, while The Pixel 4a 5G and Pixel 5 are also well-priced, the mid-tier market has gotten very crowded. That leaves Google in a familiar position, competing on software and imaging nuances that appeal to enthusiasts but are ignored by the wider market for phones by Samsung and Apple.
Chromecast
By keeping the cost exceptionally low and piggybacking on Android phones or Chrome browsers on PCs and Chromebooks, the Chromecast was a successful way for Google to infiltrate the living room. However, by keeping the value proposition so simple, the Chromecast did not give Google much leverage to advance any of the company’s broader content and ad goals – you need a user interface for that. This explains today’s new Chromecast with Google TV and an included physical remote control. This move has some branding issues; the new Google TV is separate from the original Google TV platform and the current Android TV platform, but it will eventually run on the latter.
Users will still be able to cast sources to the TV, but now they can start with a proper interface that allows Google to place YouTube and YouTube TV higher in the stack, and collect more data from consumer searches. The specs include Dolby Atmos and Dolby Vision, and the $50 price point is fair, if not as aggressive Specs and price are on point to compete with Amazon and Roku, especially if Google puts these on sale for Black Friday. Dolby Atmos and Dolby Vision, just $50 in US, more markets by EOY.
Nest Audio
Nest Audio is Google’s latest smart speaker; it’s essentially a Google Home with better audio quality at the same $100 price. This is great, but Google had left the Home without an update too long, and Amazon and Sonos have not stood still. I need to see and hear them both in person, but Amazon’s new spherical Echo appears to be the more interesting design.
Pixel 4a, 4a 5G, and 5
Google has waffled on strategy with Pixel for years. For the first two generations, Google thought that it could use generic hardware, differentiate almost entirely with software, charge premium prices, and limit distribution. That led to critical praise, but not sales. Google opened up distribution wider with the Pixel 3 but kept the rest of the formula with similar results. Next, Google tried to innovate with unique hardware for face detection and sonar that made unlocking the Pixel 4 lightning fast. Questionable design and battery decisions hurt its critical reception, and, again, consumers ignored it. However, Google did find some success with the Pixel 3a, which took the software-over-hardware philosophy to its logical conclusion and brought the Pixel’s superb image processing down to $400.
Shying away from big hardware bets and offering better value is the core theme of Google’s 2020 Pixel line. The first sign was the Pixel 4a, which launched in August at a remarkable $350 price point. Techsponential has been testing a review unit and, while it will not appeal to consumers seeking bells and whistles, it is a superb basic smartphone. At the Launch Night In event, Google unsurprisingly noted that "The Pixel 4a is selling even faster than the Pixel 3a [did]."
The Pixel 4a 5G adds $150 to the price for 5G, but it is also larger PIxel 4a 5G also has a larger 6.2” display over the 4a’s 5.8”, a larger battery, and an extra wide angle camera on the rear. One area where Google went off script in terms of value: the Pixel 4a 5G costs so much more than the regular 4a not just because of 5G, but because Google certified the phone for mmWave. This makes Verizon happy, but skews the pricing in the wrong direction for minimal consumer benefit.
The $700 Pixel 5 comes in just one size, with a 6” screen, making it smaller than the Pixel 4a 5G. The Pixel 5 casing is made of aluminum and adds wireless charging through strategically hidden plastic areas. The 3.5mm headphone jack is sacrificed in favor of water resistance, but the biggest feature additions are a 90 Hz refresh rate display and 5G. The Pixel 5 still relies on software magic for zoom, but it adds a wide angle lens and improved HDR algorithms to its already excellent image processing suite. Portrait Mode has been improved in poor or low light conditions, and three new video stabilization modes have been added to compete with Apple (which leads all competitors on smartphone video capture. The Pixel 5 also has a more configurable low battery mode and, in the U.S., it can wait for you to come off hold when you make calls.
The Pixel 5 is not trying to compete with super-premium flagships anymore, but on specs alone, isn't exactly a bargain at $700, either. Samsung’s Galaxy S20FE offers a faster processor, higher refresh rate display, and the same software upgrade promise at the same price point. Motorola, LG, and OnePlus all offer solid options at this price point, and, globally, Xiaomi and Realme are growing rapidly. Of course, Apple’s new iPhones are just around the corner, and the $700 iPhone 11 was its best-selling model last year. To differentiate, Google is starting to bundle 3 month of content and services (Stadia, YouTube Premium, 100GB Google One storage), but it will need to offer longer terms before they become a purchase driver rather than just a slightly-longer free trial.
The good news is that Google’s pivot in 2020 to lower pricing is well timed, and the new Pixels are more appealing than the models they replace. However, the state of 5G networks makes spending $150 more for the 4a 5G a hard sell, and the competition has met Google at the $700 price point with better-on-paper products (we need to get hands-on before we’ll know if those advantages are real). Once again, that leaves Google competing based on its brand and its software experience.
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