After dominating the internet, Google focuses on hardware

Little by little, the Google ingrained in all aspects of the digital life: your services manage emails, trace routes by car, translate information, answer any question. However, for these services are in the Palm of the hand of the people, Google has always depended on: third-party hardware manufacturers. It''s through smartphones, tablets and computers of other brands that consumers have access to the myriad of Google services. But that is changing – and accelerated form. The company has invested far to develop a line of its own hardware, including routers, smart sound boxes.
Currently, the line has four main products (see art), which include smartphones Pixel, the device to connect TVs to the internet Chromecast and sound smart Google Home. They still are not representative for the company in terms of revenue. Google does not disclose separately the results, but, with cloud services, yielded $ $3 billion in the first quarter of this year. That''s just a fraction of the company''s revenue from advertising, which generated $ $21.4 billion in the same period.
"Google is doing a good job in diversifying their revenue," said market analyst James Wang, the ARK Investment Management. "They are trying to create new products to not just relying on advertising."
This is not the first time Google invests in hardware. The search giant has begun to look at the area in 2010, when launched in partnership with HTC your first smartphone, the Nexus One. Back then, Google was meant to inspire the hardware manufacturers to create new devices with Android. In the following years, Google has released eight generations of mobile phones Nexus, as well as tablets, and multimedia stations.
Google also ventured in other categories, such as wearable, to surprise the market with Google Glass, in 2012. But it wasn''t until 2013 that the company scored your first success in this market, the Chromecast. The small device, kind of Flash drive and with price $35, allowed turn any TV with HDMI input on a TV connected. In three years, more than 34 million Chromecast units were sold.
"The Chromecast succeeded because people did not need to learn anything new to use," says the Brazilian Mario Queiroz, Vice President of hardware products from Google, and one of the main engineers behind the product (read the interview).
Until last year, those efforts of Google in hardware occur in a decentralized manner. Last year, the company decided to create a hardware Division. The area is led by Rick Osterloh, who was Executive Chairman of Motorola, at the time the company was Google-in January 2014, the seeker sold to Chinese manufacturer Lenovo.
Symbiosis. More than compete with other manufacturers in the hardware market, Google tries to differentiate by the almost symbiotic integration between hardware and software. "Google wants to offer a full user experience," said a market source who declined to be identified. "You have to deliver your product ready for the user, with all hardware and software."
Much of this integration goes through the interface between systems and devices. So, Google is betting on developing new technologies of artificial intelligence, as Google Assistant Personal Assistant. He will ensure that users interact with all devices and Google services almost without realizing it (read more).
"Artificial intelligence must leverage Google''s presence in all market segments and will be the wire that will connect the experiences of users," said the State Vice President of Forrester Research, Michael Facemire.
Challenges. But it won''t be that easy for the search giant to get there. Google still faces many difficulties, among them the correct distribution of products at points of sale. It is common to find reports of people in the US that they don''t think the smartphone Pixel in stores. Other products, such as Google Home, it takes a while to get into markets outside the U.S., like Brazil.
In addition, the company needs to explain better their products. "The hardware market is very competitive," says Gartner Consulting, analyst Tuong Nguyen. "It is very difficult to reach consumers if you don''t have the scale of companies like Samsung and Apple."