Alphabet’s GOOGL division Google is leaving no stone unturned to expand its Pixel family.
At its Made by Google 2022 launch event, the company ended the quest for its long-awaited smartwatch by rolling out its first smartwatch — Google Pixel Watch, which runs on Wear OS software and is powered by Fitbit’s technology.
The watch comes with contactless payments, music control, turn-by-turn directions, heart rate variability, breathing rate, and resting heart rate features, to name a few.
The company expanded its smartphone offering by launching Pixel 7 and Pixel 7 Pro phones, which are powered by next-generation Tensor G2 processor and Android 13. The phones are also equipped with advanced machine learning technology and speech recognition feature.
Apart from the devices, Google gave a glimpse of its Pixel Tablet, which will be launched in 2023. The device will also be backed by a Tensor G2 chip like the new Pixel phones.
The latest move has added strength to Google’s hardware business and bolstered its device strategy.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
We believe that the latest move will help Google rapidly penetrate the booming smartphone, smartwatch and tablet market.
According to a report by Persistence Market Research, the global smartphone market is expected to reach $982.8 billion by 2031, seeing a CAGR of 6.8% between 2021 and 2031.
Per a report from Facts and Factors, revenues in the global smartwatch market are expected to hit $97.5 billion by 2028, witnessing a CAGR of 21.5% between 2022 and 2028.
Per a report from Maximize Market Research, the global tablet market is likely to reach $53.8 billion by 2029, witnessing a CAGR of 3.4% between 2022 and 2029.
Cut-Throat Competition With Apple
With the latest move, Google ups its device game against Apple AAPL, which continues to ride on its robust device portfolio.
Apple’s flagship device iPhone, which generated revenues of $40.67 billion and accounted for 49% of the total sales in third-quarter fiscal 2022, remains its key catalyst.
The company is continuously gaining strong traction among customers on the back of its iPhone 13 family of devices.
Recently, the company unveiled four iPhone models — iPhone 14, iPhone 14 Plus, iPhone 14 Pro and iPhone 14 Pro Max — at its product launch event.
Apple is also riding on its non-iPhone devices like Apple Watch and AirPod, which enjoy solid customer momentum.
At the same event, the company launched the next-gen Airpods Pro, the Apple Watch Series 8, the new Apple Watch SE, Apple Watch Ultra and updates to Fitness+.
Nevertheless, Google’s strengthening device strategy is likely to give strong competition to Apple.
Zacks Rank & Stocks to Consider
Currently, Alphabet carries a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like Pure Storage PSTG and Arista Networks ANET. While Pure Storage currently sports a Zacks Rank #1 ( Strong Buy), Arista Networks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Pure Storage has lost 10.8% in the year-to-date period. The long-term earnings growth rate for PSTG is currently projected at 35.5%.
Arista Networks has lost 15.6% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 15.7%.
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