When Google (David's) (Google) launched its pixel phone line in 2016, I commented that while the device is nice, it will not be an iPhone killer in the near future. Between a high price and a limited carrier offer, the device did not seem to sell so well. A few generations later, Google has finally decided for Apple (AAPL), as the two giants continue to fight for technological supremacy.
A few months ago, I described in detail how Google should launch another launch. Budget-friendly Pixel device. At that time, the biggest question was how cheap the device would be. Some say it's a bit cheaper than the $ 749 iPhone XR. Well, on Tuesday, Google unveiled the new Pixel 3A and 3A XL, and the devices came at a price that seemed surprising to the smartphone market overall. [1
( Source: Verge article, see here)
The new 3A and 3A-XL smartphones now come with 5.6 resp. 6.0-inch displays That's almost the size of most new iPhones. However, the new pixels do not have first-class specifications in every category, which takes the low price into account. The back of the device uses plastic instead of glass, has a simpler processor and a maximum memory of 64 GB. They also do not get wireless charging, but that's not a killer for most consumers. The big selling point of the Verge details in the link above is the awesome pixel camera setup that Google is known for, not those cheap phones. These two smartphones cost $ 399 and $ 479 and are thus well below the predecessor models and all newer iPhones. In addition, T-Mobile (TMUS), Sprint (S), and US Cellular are supporting it, unlike previous generations that were Verizon (NYSE: VZ) exclusive. The availability of carriers was one of my main arguments against the phones before, as it reminded me of the failed BlackBerry (BB) Priv Launch.
I'm curious if there will be a big reaction at Apple iPhone. Do you think that the iPhone will be a little cheaper if it comes on the market later this year, as consumers pressed against higher prices last year? Or can the company satisfy a small niche of consumers by launching a new version of the SE, a smaller screen device that could come at a lower price?
Before all the Apple supporters come up to me, I storm I'm not claiming that Google is going to eat Apple's lunch soon. However, the introduction of a lower priced device with more carrier availability will be seen over the next few quarters. Google is not only trying to steal market share in terms of sales, but also pushing consumers as far as possible from the Apple services. A few million more sales Apple will not affect much this year, but this is definitely a stronger step than Google has previously assumed. Where this becomes a problem for Apple is when the pixel line continues to grow when Google tries to expand sales to tens of millions of units per year.
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