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Should Google Make its Own Hardware?

Android and Me has a post up about the need for Google to build its own Nexus hardware. The argument goes: since the company’s complete control over the Chromebook Pixel, Nexus Q, and Google Glass resulted in outstanding products, the company should just go all-in on hardware.

I don’t think I agree. Of the three products cited, I would only really be proud of the Pixel, which, while expensive, has top-class features and could spearhead more disruption for the Windows PC market in particular. But body-wise, it’s still something that couldn’t have existed without the MacBook Pro as an antecedent, and its touchscreen, like the touchscreen in any Win8 ultrabook, suffers from odd performance but more broadly from a “what’s this good for?” syndrome, whereby touch is applied to ancient desktop metaphors rather than to touch-first/touch-only ones. The Nexus Q didn’t even make it to sale. And Google Glass? Well, I think it’s mostly hype, driven by a tech press that has yet to realize that categorical disruptions like the iPhone and the iPad and even the Android OS itself are the exception rather than the rule, and are usually organic and unpredictable rather than forced like Glass is. And then there’s the myriad privacy issues that Glass will only exacerbate.

Google’s current slew of Nexus hardware – the 4, 7, and 10 – are OEM products that are by and large fantastic. Perhaps they’re not ground-shaking innovations (although the Nexus 4 is arguably the first Android phone whose full experience is on par with the iPhone’s), but they’re beautiful and functional. So where does this desire for Google-branded Nexus hardware come from?

As much as it pains me to say it: Apple envy. But Google cannot easily be like Apple (this is not a normative statement, but a simple descriptive one). Apple makes its money in transparent, conventional ways: it sells products to end-users. For all of the bluster about Apple representing everything that’s closed and proprietary, Apple is straightforward when it comes to sales numbers, because that’s what Apple does: sell items to anyone would will buy them. Google, on the other hand, makes money in ways that most people on the street probably don’t understand, such as taking money from advertisers and promoters. Whereas Apple users have almost always directly paid Apple for their devices and services, someone could go about using most Google services without ever paying Google anything and instead paying hidden fees in the terms of opening themselves up to advertisers and data collection

Why does this difference matter? It means that, as currently constituted, hardware and integrated user experiences are not central to Google’s DNA, because Google doesn’t care that much about the end-user. The end-user is not Google’s customer; the advertiser is. This could change, sure. But I doubt it will change that soon, given that Google has gone all-in on making top-shelf iOS apps in order to monetize (via ads and data collection) what it must realize is the much more monetizable iOS user base. Google just wants its services (Maps, Gmail, YouTube, etc.) to be used by as many people on as many platforms as possible. Accordingly, it doesn’t have any existential drive or need to create a completely vertically integrated experience like Apple has done. Even when it has tried, such as with the Chromebook Pixel, the result is still a low-selling niche device whose capabilities likely won’t please the same broad range of persons who are sated by any iOS/OS X device.

The weak assumed sales numbers for the Nexus 10 in particular reinforce all of these points. Google is more than happy to use Chrome, or Maps, or Gmail to create trojan horses on other platforms so that it can keep its ad money flowing in, so why does it have to focus on device manufacturing, design, and sale? If it wanted to make real block-blusters that pushed the envelope for design and innovation, it would have to change its fundamental corporate DNA, and I just don’t see that happening for a while yet, if ever.

The tone-deafness of Glass and Sergey Brin’s justification for it are exhibit one in how far Google has to go on the hardware front. Or, just look at Microsoft: it, too, is struggling to get into the hardware business, because the Microsoft of late is a company that makes money not so much from selling to end-users as to businesses and OEMs. Since Apple cares almost exclusively about end-users, it still occupies a position in hardware that both Microsoft and Google will struggle to duplicate.

-The ScreenGrab Team

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