The popularity of Apple Inc.NASDAQ: AAPL) iPhone among smartphone users would be worrying Alphabet Inc.it is GOOG GOOGL Google so much so that the tech giant is considering taking a big bet.
What happened: Google plans to double down on its hardware, including its Pixel phones. He was prompted to take this step because the search engine feared that Apple would gain market share from Samsung Electronics Co.,Ltd SSNLF, reported Information (Going through 9To5Mac), citing an internal document.
Although the document says Google has no plans to reduce its support for Samsung, it believes the once-dominant Android smartphone maker is struggling to compete with the Cupertino-based tech giant.
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The document also says that US antitrust regulators have reviewed Google’s search deal with Apple. The deal could end up hurting Google’s search position in the iPhone Safari browser, the document says.
Both of these developments threaten Google’s mobile advertising business and have prompted the tech giant to double down on investment in its own hardware. Google CEO Sundar Pichai is believed to be behind the move.
Why it matters: Last year, Pixel phone sales totaled just 4.5 million compared to 230 million iPhones. The report notes that Google might pin its hopes on the price factor, as its latest models are cheaper than Apple’s current lineup.
Apple dominates the US smartphone market During the June quarter, iPhone’s share of the US smartphone market reached the 50% mark. The remaining half was covered by smartphones running the Android operating system, including Samsung and Lenovo Group Limited LNVGY.
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