Google Pixel – Damage done pt. III

Yet another avoidable blunder.

  • In what is becoming a recurring habit, reviewers have found a serious problem with the Google Flagship device that further underlines my view that Google should not be making hardware.
  • This time (see here) the problem is structural integrity where the infamous bend test (which most phones survive easily) resulted in 4 huge cracks in the metal body.
  • Previous installments of this sorry saga include:
    • 2018 (see here): where the supposedly best in class camera had problems when being activated by third-party apps such as Snapchat or WeChat.
    • There were also other bugs that randomly added notches to the device’s screen, refused to save photos and suffered from memory management issues where apps would prematurely close.
    • This drew attention away from the excellent features that Google had created and really damaged the device’s appeal especially at the premium price point.
    • 2017 (see here): which included screen burn-in, dull colours, and a blue cast as well as clicking sounds from the earpiece.
    • These were all solvable with software but once again the device’s reputation was trashed which reduced what volume the device might have had.
  • The 2019 problems are much worse as this is unfixable which combined with huge bezels and a dated look and feel make this seem very poor value with a $999 price tag.
  • That is more expensive than the iPhone 11 which once again makes the Google Pixel a very difficult proposition to vouch for.
  • This is very unfortunate for Google because when it comes to software and producing good performance from inferior hardware, Google has once again set the bar.
  • For example, where everyone else has three cameras, Google accomplishes on par (some say better) performance with two.
  • This has been its hallmark for the last three Pixel devices but at the same time so has a series of schoolboy errors that no device maker worth its salt would make.
  • This adds more weight to my long-held view that Google should be not trying to make hardware and should focus on ensuring that its ecosystem is fresh and in the hands of as many users as possible.
  • I love long advocated for some sort of time-limited exclusive deal with Samsung which would give Samsung differentiation for a period of time (see here) and at the same time ensure that new Google innovations are in the hands of many users instead of a tiny geeky minority.
  • This looks increasingly unlikely as both companies have a rampant affliction of engineering disease (see here) which Dr. Porat has been unable to cure (see here).
  • I continue to think that the outlook for Google’s hardware business remains pretty bleak and throwing another $2bn at Fitbit is unlikely to make any difference (see here).

RICHARD WINDSOR

Richard is founder, owner of research company, Radio Free Mobile. He has 16 years of experience working in sell side equity research. During his 11 year tenure at Nomura Securities, he focused on the equity coverage of the Global Technology sector.