Alphabet Inc’s Pixel Is Going Straight for Apple’s Dome (GOOGL)

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Alphabet Inc. (NASDAQ:GOOG, NASDAQ:GOOGL) just wrapped up its Oct. 4 event, unveiling a slew of new hardware. But GOOGL stock holders are likely to be focusing most on the Pixel and Pixel XL smartphones.

Alphabet Inc Takes Aim at Apple With Pixel (GOOGL)

Google is leveraging its machine-learning smarts to take the battle directly to its primary competitors in multiple areas, all at once.

Here, we take a look at the products Alphabet just unleashed, including its Pixel smartphones, Daydream VR and Google Home.

Pixel Smartphones Go Upscale and Upmarket

Alphabet is taking charge of the fight for flagship smartphone leadership with new Pixel smartphones, both branded with the “G.”

The two smartphones are aimed at Apple Inc.’s (NASDAQ:AAPL) dual iPhone 7 lineup and Samsung’s (OTCMKTS:SSNLF) Galaxy S7 and Galaxy S7 Edge. Google is no longer competing on the discounted Nexus concept, and has priced the Pixel smartphones as premium devices.

Both new Pixel smartphones feature the following:

  • Qualcomm, Inc.’s (NASDAQ:QCOM) latest Snapdragon 821 processor
  • Integrated Google Assistant
  • AMOLED displays
  • 12MP camera
  • 32GB base storage
  • USB-C
  • A fast-charging battery
  • Android Nougat
  • Rounded metal design that bears more than a passing similarity to the iPhone 7.

The smaller Pixel is Full HD resolution while the 5.5-inch Pixel XL gets an upgrade to Quad-HD.

Google claims that tests show the Pixel’s camera is the best smartphone camera, ever — no camera bump needed. It’s also including unlimited free Google Photos cloud storage. (Take that, Apple!)

By choosing the Pixel name, GOOGL is hoping you won’t think of these new flagship smartphones as re-badged Nexus devices, helping to avoid awkward pricing questions. The name also aligns with previous Google-branded premium hardware like the Chromebook Pixel.

Daydream VR

Virtual reality is a big deal, and Alphabet’s involvement up to now has largely been limited to one-off projects like its Cardboard VR headsets. ButFacebook Inc’s (NASDAQ:FB) Oculus is in a lead role as the technology starts to take off, and Google is launching a more serious challenge.

Daydream is Alphabet’s new virtual reality platform. GOOGL has already signed up over 50 partners for games, educational and entertainment content.

The Daydream View is Alphabet’s new VR headset. Like Samsung’s Gear VR, it uses a smartphone for processing and display. But it’s made to be more comfortable, with cloth construction instead of plastic. A standalone hand controller is part of the setup.

The Pixel smartphones are the first Daydream-ready phones, by the way.

Google Home

While the Pixel smartphones are designed to take on Apple and Samsung, Google Home —first announced at Google I/O 2016 — is going to be doing battle with the Amazon.com, Inc. (NASDAQ:AMZN) Echo.

The Echo has been surprisingly successful in its stealth role as a smart home hub. Despite its acquisition of Nest Labs, Google hasn’t been able to gain the same sort of foothold or third party support that Amazon has.

Google Home is designed to kneecap the Amazon Echo by offering the same basic premise –an attractively designed streaming music speaker, with always-on microphones, connectivity to Google Assistant for queries and the ability to interact with other smart home products (including its Nest gear). It also incorporates Chromecast functionality, so it can be used to stream video to a TV. The basic hardware can be customized, with three colored fabric bases and three metal options.

Alphabet will kick-start Google Home adoption by undercutting the Echo’s price by $50.

Google WiFi

Google already released its first crack at home routers, the OnHub line, in partnership with TP-Link and Asus.

Google WiFi is a new line of inexpensive mesh routers that work together to automatically optimize Wi-Fi coverage through your home. Do you have a big house? No more fiddling with extenders, then. Just throw another Google WiFi at it and let the mesh do its magic.

4K Google Chromecast Ultra

Another piece of hardware unveiled today is a significant upgrade to Chromecast, the cheap dongle that took over the living room.

Well … it didn’t quite take over, but Chromecast has sold very well. As in 30 million plus sold to date. And now that Chromecast is getting a 4K upgrade option (Google Play movies will also go 4K), it can take on the competition from Amazon and Roku.

It can also leave Apple TV fans wondering why Apple’s much more expensive streamers are still stuck at 1080p.

Pricing and Availability

The smaller Google Pixel is priced at $649, while you’ll have to shell out $749 for the 5.5-inch Pixel XL. Both smartphones go on pre-order starting today.

Google Home can be pre-ordered today for $129 (with 6-months of free YouTube RED). Google WiFi is availabel for pre-order in November for $129, or 3 for $299. The 4K Chromecast Ultra will set you back $69 starting in November.

Finally, Daydream View goes on sale in November for $79 (including the controller).

As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.

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Brad Moon has been writing for InvestorPlace.com since 2012. He also writes about stocks for Kiplinger and has been a senior contributor focusing on consumer technology for Forbes since 2015.


Article printed from InvestorPlace Media, https://investorplace.com/2016/10/alphabet-inc-pixel-googl-stock-apple-inc/.

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