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Alphabet's (GOOGL) Google Ups Smartphone Game With Pixel Phones

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Alphabet’s (GOOGL - Free Report) division Google has launched its long-awaited next-generation Pixel phones — Pixel 6 and Pixel 6 Pro — with a display screen of 6.4 inches and 6.7 inches, respectively.

Notably, the high-end smartphones are built on Google’s first system-on-chip called Tensor, which has been developed for offering strong battery life and quick speech recognition feature, leveraging AI and image-processing capabilities of the company.

Hence, these phones are the first ones that are comprised of a chip other than Qualcomm, MediaTek and Apple’s (AAPL - Free Report) chip.

The new Pixel phones are based on the latest Android version — Android 12 — which delivers advanced safety and personalization features.

Apart from this, the devices are comprised of a Titan M2 security chip for ensuring passcode protection, encryption and secure app-enabled transactions.

With the latest launch, Google ups its game against companies like Apple and Samsung , which are well-known providers of high-end advanced smartphones.

More Into the Details

The camera included in the devices reflects skin tone with accuracy, as it features enhanced white balance and exposure tuning. Also, the camera is well-equipped to control and lessen stray light in photos.

All these make Pixel 6 and Pixel 6 Pro better choices for capturing darker skin tones more accurately. Further, there are motion mode features like Action Pan and Long Exposure, which add movement to the shots.

We note that both models will go on sale from Oct 28 onward, wherein Pixel 6 is priced at $599 and Pixel 6 Pro costs $899.

In addition to the phones, the company has rolled out a subscription service called Pixel Pass in the United States, which offers the best of Google. The service costs $45 and $55 per month with Pixel 6 and Pixel 6 Pro, respectively, and offers access to Google One, YouTube Premium and YouTube Music Premium, and Google Play Pass and Preferred Care.

Further, Pixel Pass offers the option to customers to upgrade to a new Pixel after two years.

Alphabet Inc. Price and Consensus


Alphabet Inc. Price and Consensus

Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote

Smartphone Market Holds Promise

We believe that Google, with its latest versions of the Pixel phone, is well-poised to cater to the ever-increasing demand for smartphones especially amid the pandemic.

In this data-driven world, smartphones have become inevitable in day-to-day life by enabling users to get necessary, important and urgent work done via phones without any hassle.

The growing penetration of internet use globally is another factor that is bolstering the demand for smartphones on a persistent basis.

Per a report from IDC, the worldwide smartphone shipment in 2021 is anticipated to hit 1.37 billion units, reflecting growth of 7.4%. Growing uptake of 5G smartphones is acting as the primary factor behind the boom in the smartphone market.

Per a Technavio report, the global smartphone market is likely to witness a CAGR of more than 6% between 2021 and 2025.

Intensifying Competition

Given the upbeat scenario, companies like Apple, Samsung, Lenovo, Nokia (NOK - Free Report) , Xiaomi, Motorola, Vivo, Oppo and OnePlus are also leaving no stone unturned to expand their share in the smartphone market.

Recently, Apple, which is continuously riding on the popularity of iPhone and its brand loyalty, unveiled four iPhone models — iPhone 13, iPhone 13 mini, iPhone 13 Pro and iPhone 13 Pro Max.

Samsung, which is also enjoying strong customer momentum on the back of its high-end as well as an affordable range of smartphones, has come up with Galaxy Z Flip 3 and Galaxy Z Fold 3 models.

Meanwhile, Xiaomi and OnePlus are persistently gaining traction in the market with their advanced featured affordable smartphones.

Additionally, Nokia, Motorola, Lenovo, Oppo and Vivo continue to enjoy solid customer momentum on the back of their low-end smartphones with strong features.

Nevertheless, Google’s innovative skills, robust voice assistant and widely preferred Android operating system worldwide are likely to continue aiding the adoption rate of its Pixel phones.

Currently, Alphabet carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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