By Matt Burns
With its latest consumer hardware products, Google’s prices are undercutting Apple, Samsung, and Amazon. The search giant just unveiled its latest flagship smartphone, tablet, and smart home device and all available at prices well below their direct competitors. Where Apple and Samsung are pushing prices of its latest products even higher, Google is seemingly happy to keep prices low and this is creating a distinct advantage for the company’s products.
Google, like Amazon and nearly Apple, is a services company that happens to sell hardware. It needs to acquire users through multiple verticals including hardware. Somewhere, deep in the Googleplex, a team of number crunchers decided it made more sense to make its hardware prices dramatically lower than competitors. If Google is taking a loss on the hardware, it is likely making it back through services.
Amazon does this with Kindle devices. Microsoft and Sony do it with game consoles. This is a proven strategy to increase market share where the revenue generated on the backend recovers the revenue lost on selling hardware with slim or negative margins.
Look at the Pixel …read more
Source:: TechCrunch Gadgets
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