Google shifts focus from software to hardware
Google is rumored to be expanding its hardware divisions and doubling its investments. There would be a new strategy for hardware like the Pixel smartphones, and it would come at the cost of some software projects.
Will Google products disappear again?
According to a report by The Information, Google will focus more on hardware. For this, the company will get resources from projects that make little profit, and Google will also put less money and energy into these (software) products in the coming period. In addition, Google will also hire employees from certain projects who are working on software for devices that are not made by Google itself. Think of software made for car manufacturers, smartwatches and headphones. It doesn’t look like Google will pull the plug on these projects yet, but the company will put much less money into them. The former is still open to question, as the ‘Google graveyard’ is becoming more and more crowded. For example, a few weeks ago the plug was pulled from Google Stadia.
More focus on hardware, but why?
Google is currently restructuring its business, according to the report. The focus would increasingly shift to hardware instead of software. Google itself says that the hardware division should become one of the most important divisions within Google. This is because Google will then have full control over both the hardware and software. This restructuring is going to Google under bets because there are rumors that Apple will come with its own search service. If this is the case, then millions of smartphones, iPhones, will no longer have Google Search integrated by default. And this will be a big drain for Google because it will bring in a lot less ad revenue.
In addition, Google is also concerned about the declining market share of Android smartphone manufacturers such as Samsung, OnePlus and OPPO. Apple, on the other hand, is on the rise. All of this would have made Google decide to spend more money on hardware, possibly at the expense of software.
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