Google Pixel – Damage done.

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Software updates won’t fix reputation.

• The seemingly endless problems with Google’s latest Pixel devices can most probably be completely resolved with software updates, but these will not repair the reputation damage which is likely to keep the few potential buyers that there are at bay.
• The problems are legion:
  • First, Screen burn in: Because OLED pixels emit their own light (like plasma), they also have the potential to suffer from burn-in.
  • This refers to damage that occurs to pixels where a bright static image has been displayed for too long resulting in a residual ghost image.
  • All OLED screens have the potential to suffer from this problem but through the clever use of software, Samsung has managed to virtually eliminate this problem from its portable devices.
  • Google has no experience with OLED or screen technology in general which has resulted in the bad feedback from users seen.
  • Second, dull colours and blue cast: Since the device made it into the hands of users there have been complaints that Pixel’s OLED is dull with an odd blue cast compared to those in Samsung devices.
  • Third, clicking sounds: There have been numerous reports of clicking sounds coming from the device which is caused by the activation of the NFC receiver.
  • Fourth, audio quality: Some of the recordings that the device makes appear to play back with very poor audio quality.
• These problems are all surmountable and look to me to have been mostly caused by a lack of hardware experience and the rush to bring the device to market.
• Consequently, there is a massive software update that Google says will address all of these issues but I think that will not fix the biggest issue of all.
• This is the damage that has been done to Google’s reputation for building good quality hardware.
• At the price that Google is charging for its smartphones, there is no real margin for error as it is competing head on with Samsung’s flagships and iPhone 8.
• I suspect that the end result will be that the Pixel 2 ships much lower volume than it would otherwise have done as there are plenty of very high-quality alternatives.
• This will put yet another crimp on Google’s ambition to become more vertically integrated and it appears that the best way to get the most value from Google services is still to use them on another device.
• It comes as no surprise to me that Google continues to generate more revenue per device from iOS than Android.
• I think what it really needs to work on is fixing the Android user experience on all of the other devices out there as this is how it can close the gap on iOS which could have a significant upward impact on revenues.
• Until then, I think Google will continue to underperform its Android potential leaving me pretty indifferent to an investment in the shares.