Google’s Bid To Win The Smart Home Race Is A Costly But Necessary Gamble
Alphabet, Google’s parent company, reported their earnings for the first quarter and beat the Wall Street sales and profit estimates. The report highlights the profit and losses by smart home company Nest. According to the reports, the company made $726 million in profit but had a $621 million in loss. Google spent over half a billion dollars launching Nest in areas of alarm systems, security cameras, and video doorbells.
With each one of those product categories, Google is competing with a different tech industry juggernaut. With phones, Google is taking on Apple and the iPhone. With the Pixelbook and other Chrome-powered laptops, Google is taking on Microsoft. But perhaps most importantly, with Google Home and Nest, the company is taking on Amazon, the clear market leader in the smart home thanks to its Echo line and the pervasiveness of its Alexa digital assistant.
Since Alphabet earned about $31.15 billion in sales in just the first quarter, Google does not lack the capital. It has been made clear that the battle against Amazon in the smart devices market is not a cheap one for Google and it does not look like it is going to end soon.
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