Google has developed a hobby of shopping tech companies like other competitors. Just open Google’s showcase you can have a glance at all the things it has bought.
If we look back at Google’s acquisitions, HTC Hardware, Nest, Motorola, Fitbit , fossil and now North. It has spent billions on these companies, but we are yet to see the changes on the consumer facing side. It doesn’t mean that these purchases were wrong but we can say Google has not effectively converted these purchases.
For Example after they bought Nest they just renamed those product into “Nest by Google” or not having a 3rd party to oversee the manufacture of Pixel phones isn’t exactly what many expected when Google had bought another hardware brand.
But when company starts acquiring other companies there must be certain strategy behind it, If we look at what exactly google owns now and little about what Google see as the future of computing we can see an entire ecosystem of mobile, wearable and smart home products that are so good which people would want to buy them.
Google has thought about this long along. When you have billions at your disposal you can play a long game. Google has more than a nameplate from these purchases. It has what is what is most important which can play as trump card for future: Ideas and People which can convert these ideas into reality. Google now has all the pieces of ecosystem under it and can take a next step without having to depend on its partners.
Google never expected Android to become such a success, this success was mainly due to its hardware partners .
As per IDC, Apple makes around 15% of the worlds smartphones and android makes up the rest, that’s google in the hands of majority of people , but because the market is so one -sided, Google has to play by special rules or end up in court for abusing its dominance and Google doesn’t like how it has when it comes to smartphones.
The solution for their problem is to not to depend on companies like Samsung and other OEMs to act as distributor of their great idea. As we all know Google is very good at developing software but other companies are better at building hardware. For Google to Make sure its is with you wherever you go be it on your wrist , coffee table , inside your oven and AC , Car and in your laptop bag or your pocket it has to get good at building hardware than to depend on other companies to help to implement this.
Working towards this direction Google is also going to start building its own chips. Google glass 2 and pixel watch are almost in the final stages of launch. More importantly Smart home appliances are going to be built from Googles own products. Smart Wifi , smart locks, smart lighting , smart window blinds , washing machines etc.
Every appliance which we use in day to day life can be better if its is automated and Google assistant serves as the platform to bring everything together.
Google isn’t dumb to just go on a buying spree. they are just taking calculated steps for their long term future.
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