{"id":3625,"date":"2019-10-20T13:18:25","date_gmt":"2019-10-20T11:18:25","guid":{"rendered":"https:\/\/www.dazzlepop.net\/site\/?p=3625"},"modified":"2020-05-31T21:34:38","modified_gmt":"2020-05-31T19:34:38","slug":"why-big-tech-companies-keep-pouring-money","status":"publish","type":"post","link":"https:\/\/www.dazzlepop.net\/site\/why-big-tech-companies-keep-pouring-money\/","title":{"rendered":"Why big tech companies keep pouring money"},"content":{"rendered":"
\"Why<\/div>\n

Why big tech companies keep pouring money into hardware when Apple still dominates<\/p>\n\n\n\n

Sundar Pichai, senior vice president of Android, Chrome and Apps at Google<\/a> Inc., gestures as he speaks during the company\u2019s Android One smartphone launch event in New Delhi, India, on Monday, Sept. 15, 2014.Kuni Takahashi | Bloomberg | Getty Images <\/p>\n\n\n\n

Google\u2019s Pixel devices have minimal market share, but the company is still trying to gain traction with the phones.<\/p>\n\n\n\n

Amazon wants Alexa everywhere, and is putting out tons of devices with the voice assistant embedded.<\/p>\n\n\n\n

Facebook is investing in Portal and Oculus to try and win some adoption in hardware.<\/p>\n\n\n\n

The holiday shopping season is right around the corner, and all the biggest tech companies are coming for your wallet.<\/p>\n\n\n\n

In the past two months, Google<\/a> has revealed new Pixel phones, Microsoft<\/a> has launched Surface tablets and laptops, Facebook<\/a> has introduced a new smart display called Portal along with Oculus VR headsets and Amazon<\/a> has rolled out a bunch of gadgets that work with its voice assistant, Alexa.<\/p>\n\n\n\n

These are the dominant players in software and web services and they\u2019re trying to play in the hardware world, where Apple<\/a> owns the consumer\u2019s wallet. Google\u2019s Pixel devices, for example, have less than 1% of the global market share, according to IDC.<\/p>\n\n\n\n

While Google and Microsoft <\/a>have to deal with scores of partners to make hardware that runs their operating systems, Apple controls both the hardware and software and can dictate the entire user experience. It\u2019s the foundation of Apple\u2019s $266 billion in annual revenue.<\/p>\n\n\n\n

Still, there are strategic reasons for big software companies to launch their own hardware, even if they aren\u2019t throwing off billions in profit like Apple.<\/p>\n\n\n\n

\u201cAs software, these companies have staked out strong reputations to deliver equally strong experiences,\u201d said Ramon Llamas, research director at IDC. \u201cCoupling them with their own branded hardware makes for a total experience exactly how the vendor has envisioned, and within each category, there is a significant number of loyalists.<\/p>\n\n\n\n

Here\u2019s why the world\u2019s most valuable software companies want to sell you hardware.<\/p>\n\n\n\n

\"Why
Why big tech companies keep pouring money<\/figcaption><\/figure>\n\n\n\n

Google<\/h2>\n\n\n\n

Google earns nearly all of its revenue from online advertising, so why did it launch new Chromebook laptops and Pixel phones this week, especially when giants like Samsung and Lenovo already use its Android and Chromebook software?<\/p>\n\n\n\n

Google wants users to be able to pick up a variety of different gadgets to access services like search or Gmail, whether on a Chromebook, a phone, a voice assistant in your earbuds or in a smart speaker in your home.<\/p>\n\n\n\n

It\u2019s a concept Google calls \u201cambient computing.\u201d As Carolina Milanesi of Creative Strategies wrote this week<\/a>, \u201cThe devices are not the final product; the technology in them is.\u201d<\/p>\n\n\n\n

Google\u2019s head of hardware, Rick Osterloh, described it this way: \u201cOur vision for ambient computing is to create a single, consistent experience at home, at work or on the go, whenever you need it.\u201d<\/p>\n\n\n\n

One way that Pixel phones can help achieve Google\u2019s aims is by offering a niche product that gives access to unvarnished Google software. Partners like Samsung often add their own spin to Android to differentiate themselves, like Samsung\u2019s Bixby voice assistant. That can get in the way of what Google\u2019s trying to do with ambient computing.<\/p>\n\n\n\n

\u201cIn the process of being a software provider, and search engine, Google has earned the loyalty of millions of people, who just want to have that Google experience, taking out that bloatware that all these other vendors add,\u201d Llamas said.<\/p>\n\n\n\n

\"Why
Why big tech companies keep pouring money<\/figcaption><\/figure>\n\n\n\n

Microsoft<\/h2>\n\n\n\n

Microsoft sells a lot of Surface computers: $5.7 billion worth in the year ending in June, according to a company filing<\/a>.<\/p>\n\n\n\n

That\u2019s at least one good reason why Microsoft released laptops and tablets, including the Surface Pro X, the Surface Laptop 3 and smart earbuds. As former Microsoft CEO Steve Ballmer<\/a> said earlier this month, \u201cthere\u2019s plenty of profit in hardware.\u201d<\/p>\n\n\n\n

But Surface is responsible for just under 5% of Microsoft\u2019s total revenue \u2014 it makes more revenue from LinkedIn and cloud services, and it\u2019s best known for its Windows and Office software.<\/p>\n\n\n\n

The world\u2019s biggest computer manufacturers also buy Windows software to power their laptops and tablets, which sell in much greater numbers than Microsoft\u2019s first-party hardware. Microsoft\u2019s Surface makes up less than 5% of the tablet business worldwide, according to IDC.<\/p>\n\n\n\n

One reason why Microsoft invests in its Surface lineup is that it gives its partners a glimpse of where Microsoft wants to take Windows in the future. It\u2019s a lot easier to introduce complicated new features and new designs when one company controls both its hardware and software.<\/p>\n\n\n\n

\u201cWith every massive shift in tech, or when that change starts to the happen, the form factor changes too, and that\u2019s what we are starting to see here,\u201d Panos Panay, Microsoft\u2019s chief product officer said earlier this week<\/a>.<\/p>\n\n\n\n

Two hardware items announced last month underscore this point: Surface Duo and Surface Neo<\/a>.<\/p>\n\n\n\n

Surface Neo is supposed to go on sale by the end of 2020, and it\u2019s a double-screen folding laptop. The idea is that it can be a powerful computer you use while you walk around thanks to a totally new design.<\/p>\n\n\n\n

Surface Duo is a folding phone running Google\u2019s Android, also expected to go on sale over a year in the future. It\u2019s the latest signal that Microsoft wants to closely integrate its Windows desktop system to play well with Android smartphones.<\/p>\n\n\n\n

\"Why
The Amazon Echo Loop is an experimental product that will let you talk to Alexa from a ring on your finger. Amazon unveiled it at an event in Seattle on Sept. 25, 2019.CNBC | Todd Haselton <\/figcaption><\/figure>\n\n\n\n

<\/p>\n\n\n\n

Source: https:\/\/www.cnbc.com\/2019\/10\/19\/microsoft-amazon-google-and-facebook-have-new-gadgets-for-holidays.html<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"

Why big tech companies keep pouring money into hardware when Apple still dominates Sundar Pichai, senior vice president of Android, Chrome and Apps at Google Inc., gestures as he speaks during the company\u2019s Android One smartphone launch event in New Delhi, India, on Monday, Sept. 15, 2014.Kuni Takahashi | Bloomberg | Getty Images Google\u2019s Pixel […]<\/p>\n","protected":false},"author":3,"featured_media":8430,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_vp_format_video_url":"","_vp_image_focal_point":[],"footnotes":""},"categories":[48],"tags":[94,5,41,127,37],"class_list":["post-3625","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-amazon","tag-facebook","tag-google","tag-microsoft","tag-technology"],"yoast_head":"\nDazzlepop | Why big tech companies keep pouring money<\/title>\n<meta name=\"description\" content=\"Why big tech companies keep pouring 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