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Google Expands Smartphone Presence With New Pixel Phones

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Alphabet’s (GOOGL - Free Report) division Google is firing on all cylinders to expand presence in the world of electronic gadgets, backed by innovative skills and advanced technologies.

Google’s unveiling of the latest Pixel smartphones, Pixel 4a and Pixel 5, has intensified competition in the smartphone space. Both the models have 5G capabilities.

The latest move is in line with the company’s persistent focus on expansion of the portfolio of smartphones that comprises Pixel phones. The latest to join the queue is Pixel 4a 5G and Pixel 5.

Priced at $499, Pixel 4a comes with ultrawide lens, 6.2-inch Full HD and OLED display, 3.5mm headphone jack and a Snapdragon 765G processor. The Pixel 4a offers 6GB of RAM and 128GB of storage, along with 612MP dual pixel and 16MP ultrawide rear camera.

On the contrary, Pixel 5 comes in a 100% recycled aluminum body and is priced at $699. It offers 8GB RAM and 128GB of internal storage, with a 6 inch display. The smartphone has water resistance and boasts a 48-hour battery life.

The release of the new devices will enhance the company’s product offerings and broaden portfolio. Further, these new phones will help Google rapidly penetrate into the growing smartphone market.

Rising Competition

The global smartphone market has been impacted by economic volatility, U.S.-China trade tensions and contraction in consumer spending due to the coronavirus outbreak.

However, competition in this space is poised to heat up with the latest release of Google pixel phones.

Per research data from Counterpoint, Samsung had a market share of 20% compared with Apple’s 14% in second-quarter 2020. Huawei and Xiaomi had 20% and 10% market share, respectively.

Samsung is currently leading the roster with its affordable range of smartphones having almost all advanced features. Its smartphone portfolio comprises premium range of phones that provide enhanced user experience. Early this year, Samsung unveiled Galaxy Z Flip foldable phone and Galaxy S20 family of smartphones.

Apple continues to ride on the popularity of iPhone and brand loyalty. The company enjoys a loyal customer base for iPhone, thanks to its robust features and global availability.

The latest release is expected to expand Google’s foothold in the foldable smartphone market.

Bottom Line

Though Google entered the space much later than peers like Apple and Samsung, the company’s innovative skills, robust voice assistant and widely preferred Android operating system worldwide are helping it to boost the advancement of Pixel phones.

In addition, the company’s continuous efforts are helping it to gain a competitive advantage over Microsoft’s (MSFT - Free Report) Windows phone, which has been losing market share for quite some time now due to Android’s open ecosystem feature.

We believe the latest move is likely to bolster the company’s presence in the rapidly growing smartphone market.

Zacks Rank & Other Stocks to Consider

Currently, Alphabet carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the broader technology sector include Dropbox (DBX - Free Report) and Etsy, Inc. (ETSY - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rate for Dropbox and Etsy is pegged at 34.4% and 28.5%, respectively.

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