Yes, Google makes hardware and we’ve seen them in the form of Pixelbooks, Pixel phones, or even Chromebooks, but hardware just isn’t central to the big profits picture that Google actually paints. For Google, it’s not the gadgets that matter, it’s the user data , and its software does a good job of that, even when other hardware companies do the hard work or make and sell their products that run the Goggle software. You also run the risk of making products that may or may not sell, but that’s something Google doesn’t have to worry about.
What Google is doing when it comes to making hardware is testing the waters with its software, and maybe even gently pushing manufacturers down paths they should be treading. Then Google sits back and collects the user data that flows through its software onto other companies’ hardware — from phones to computers and more.
An example is Android Central. Take what happened to Pixelbook, for example. Google just dropped the line! Now the fans of the product were very dissatisfied, but from Google’s point of view it all made perfect sense. After showing other companies the capabilities of the product, Google pulled out and other laptop-making companies took over.
In this respect, Google is more like Microsoft than Apple simply because it creates software that other people can put into their products, while the latter build products and also customize software for them.
Yes, both Google and Microsoft also make products, as mentioned, but the intent is quite different. Google makes products to test and improve its software as much as possible. Through these products, Google is trying out “specialized hardware configurations,” Android Central said, to improve its other businesses. Because of this, Google has a long list of products it makes, including cameras, wireless routers, and more.
The end result is always a desire to collect more and more user data, although there is a real possibility of losing money on these hardware products. And Google actually earns its money with user data.
“I think their ultimate goal might be user information gained through device usage, rather than generating revenue from device sales themselves,” said Sujeong Lim, research analyst at Counterpoint Research.
In fact, it’s a win-win for everyone involved, from companies to the users themselves – as long as they don’t find their privacy being exploited.
And this strategy will likely be used in the Pixel Watch as well. Once the other smartwatch makers pick up and use similar products, Google will likely step down once the goal is met. and when the product fails, it just stops making them.
One thing is clear, though: if Google were able to get anything it wanted from other companies’ hardware, it most likely wouldn’t be in the manufacturing business at all. Since she can’t, she has to do it.
So getting rid of its hardware for Google is just an essential part of the deal aimed at fattening its profits.