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Google’s 3rd Edition of Pixel to Boost Smartphone Presence


Alphabet’s GOOGL division Google is all set to launch the third edition of its Pixel phones in an attempt to expand footprint in the smartphone market.

Per Reuters, the company is gearing up to roll out the latest Pixel smartphone at 10 media events which in turn will aid in popularizing the device.

The latest move is in line with Google’s tradition of launching updated version of Pixel phones every October since 2016.

Further, it bodes well for the company’s persistent focus toward expansion of its portfolio of smartphones which comprises Pixel, Pixel XL, Pixel 2, Pixel 2 XL and now Pixel 3 and Pixel 3 XL. This will in turn enhance the company’s product offerings.

Coming to the price performance, shares of Alphabet have returned 9.9% on a year-to-date basis against the industry’s decline of 14%.

Smartphone Market Holds Promise

In this data driven world, smartphones are playing a significant role in day-to-day life by enabling the users to get necessary and urgent work done via phones.

Moreover, growing penetration of internet usage globally is another factor that is bolstering the demand for smartphones on a persistent basis.

Per a report from IDC, the worldwide smartphone shipment in the second quarter of 2018 was pegged at 341.1 million. Although the figure declined 2.1% from the year-ago quarter, the market holds growth potential, thanks to its growing proliferation worldwide.

Google with its updated version of Pixel phone is well poised to cater to the ever-increasing demand for smartphones especially in the emerging markets.

Alphabet Inc. Revenue (TTM)

Alphabet Inc. Revenue (TTM) | Alphabet Inc. Quote

Rising Competition

Google with its growing smartphone portfolio has strengthened its competitive position against the major players like Apple AAPL, Samsung SSNLF and Xiaomi at present.

Samsung is currently leading the roster with its affordable range of smartphones containing almost all advanced features. Further, its smartphone portfolio also comprises of premium range of phones which provide better user experience.

Apple continues to ride on the popularity of iPhone and its brand loyalty. The company enjoys a loyal customer base for iPhone, thanks to its robust features and global availability.

Meanwhile, Xiaomi has recently started gaining traction in the market with its low-range smartphones.

However, the search giant entered the space later compared with its peers like Apple and Samsung, and is only gaining momentum now.

Nevertheless, the company’s innovative skills, robust voice assistant and widely preferred Android operating system worldwide will continue to aid the advancement of its Pixel phones.

Moreover, these factors will help it in gaining competitive advantage from Microsoft’s MSFT Windows phone which has been losing its market share for quite sometime due to Android’s open ecosystem feature.

We believe all these endeavors are likely to bolster presence in the rapidly growing smartphone market.

Currently, Alphabet carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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