Google beats Apple to release AI phone, new Pixel launch event moved up to Tuesday

According to Zhītōng Finance, Alphabet (GOOGL.US) under Google will hold a new product launch event at 1:00 p.m. Eastern Time on Tuesday. In the upcoming hardware event, Google is trying to surpass Apple's (AAPL.US) annual iPhone launch event and put long-time executive Rick Osterloh in the spotlight. Osterloh, former president of Motorola, joined Google in 2016. This year, Google unified the hardware development team and the Android operating system development team under his leadership, with Osterloh in charge of Google's first major product launch. This restructuring expands Osterloh's influence within the company and indicates Google's intention to engage in long-term competition in the hardware field.

Google has moved up the release date of its flagship smartphone Pixel from October to August, ahead of Apple's next generation iPhone release, capturing people's attention during a typically quiet period in the industry, indicating Google's more proactive entry into the consumer device market.

Bloomberg analyst Mandeep Singh stated, "This is the first time I've felt that Alphabet is taking its hardware and smartphone business very seriously. This reflects Osterloh's leadership and everything he has done."

Google has invested heavily in its Pixel series, including designing its own chips, sponsoring the NBA playoffs, and providing devices to superstars like Giannis Antetokounmpo. However, it still lags behind Apple in the high-end market. Additionally, Samsung Electronics (SSNLF.US) has already secured most of the remaining market share in the U.S. in this field, leaving little room for competitors, even influential ones like Google.

Intense competition has not slowed Osterloh's rise within Google, allowing him to unilaterally control the company's consumer products to ensure that Google can leverage current efforts to monetize artificial intelligence through devices.

Ben Wood, Chief Analyst at CCS Insight, said, "Osterloh's role is quite broad. This applies not only to Android but also to other key platforms like Chrome. This may signal that Google realizes it needs a more cohesive cross-platform approach, especially as the battle for artificial intelligence intensifies."

Singh mentioned that the latest wave of artificial intelligence features could rejuvenate consumer interest in smartphones and encourage them to upgrade their devices more regularly. Samsung Electronics positioned its Galaxy series as "AI-first" products this year and reported that sales of the Galaxy S24 series achieved double-digit growth compared to the previous generation.

Apple also hinted that it plans to sell iPhones with a series of new features leveraging Apple Intelligence AI.

During Ostrolo's tenure, Google launched the Pixel series, which stood out for its use of artificial intelligence in camera software. It brought breakthrough progress, such as Night Sight, a photography mode that the entire mobile industry, including Apple, has imitated. Google's self-designed Tensor mobile chip has set the company apart from other Android competitors.

Singh stated that by holding a hardware showcase a month before the largest annual event of iPhone manufacturers, Google "leads Apple and indicates that we are likely to show things at least much earlier than what Apple will show on the iPhone 16." He added that Google is at least six months ahead of Apple, as Apple has invested less in artificial intelligence over the years compared to some large tech peers.

Google's strategy - integrating the development of hardware, software, and services - is similar to Apple's successful approach in designing devices. However, as Ostrolo seeks to capitalize on the opportunities brought by artificial intelligence, he also faces a long-standing challenge that Google faces: challenging Apple without threatening key relationships with other hardware giants that rely on the Android operating system.

Android President Sameer Samat said in an interview that his team maintains strict information sharing boundaries to ensure that projects with Pixel team and partners like Samsung do not overlap. However, Samat stated that Ostrolo's leadership team will pave the way for Google's artificial intelligence from the lab to Android partners. He added, "This allows us to bring some of our artificial intelligence innovations to more places in the ecosystem faster. All of this is to accelerate our efforts in artificial intelligence and improve consumer experience."

Shortly after taking on his new role, Ostrolo traveled to South Korea to meet with Samsung's CEO to ensure that the partnership and cooperation between the two companies proceed smoothly. He also attended Samsung's unpack product launch event in July, promising to bring Google's artificial intelligence experience "to all Android devices."

Singh stated that due to the complexity of switching from Apple to Android devices, any hardware gains for Google could come at the expense of sacrificing Android partners, which could itself be a beneficial force. Singh said this would force these brands to "act faster." The analyst said, "Overall, I think this will only strengthen Google's ecosystem."