Will Alphabet Inc Destroy Samsung?

Samsung Electronics Co Ltd's Galaxy phones are blowing up. This could be an incredibly rare opportunity for Alphabet Inc (GOOG)(GOOGL) to cash in big.

Samsung originally rushed its production of the Galaxy to beat Apple Inc.'s (AAPL) new iPhone release. Rushing the manufacture of a lithium-battery device turned out to be fatal, literally.

A recent hardware defect caused the phone's batteries to catch fire. Samsung then rushed to design and manufacture a replacement Galaxy device, which itself started self-combusting.
Only days later, Samsung called it quits, killing off its big-time smartphone.

Google is ready to enter the massive smartphone market

Already, Samsung's phones had relied on Google's Android smartphone operating system. Now in control of the software, it looks like Google wants to control the hardware too, similar to Apple's close-ecosystem model.

It has a chance to do just that with its new Pixel smartphone line.

 

While the new pixel will be manufactured by HTC Corp, Google has been insistent on reminding investors, consumers, and the media that it controlled the design from day one, tagging the phone as "phone by Google."

The Pixel has newer and better software than the newest Galaxy.
Will Alphabet Inc Destroy Samsung?
Image by / c1.staticflickr.com
It runs a faster processor, allowing it to tap into Google's new Daydream virtual reality platform. It also comes with free unlimited storage for pictures and videos.

The new phones are made of aluminum and look remarkably like Apple's iPhone, complete with a large glass screen and a fingerprint sensor .

Pricing starts at $649 for the smaller 5-inch model and scales to $869 for the XL version.

Here's the proof

A new survey conducted by Branding Brand suggests that Samsung device-owners are willing to switch to Google's new device.

The survey included, among others, 1,000 Samsung smartphone owners. It found that 40% of respondents won’t be buying another device from Samsung. Nearly 10% are planning to switch and buy a new Google Pixel. Because the Google Pixel wasn't formally announced at the time of the survey, that number is likely much higher today.

Last year, the global smartphone market was worth roughly $425 billion. Expect Google to command a decent chunk of that in coming years, possibly at Samsung's expense.
Published on Oct 17, 2016
By Ryan Vanzo
Ryan Vanzo is the Digital Business and Finance Editor at WebFinance Inc, which runs InvestorGuide.com, InvestorWords.com, and BusinessDictionary.com. You can reach him at ryan@investorguide.com

Copyrighted 2018. Content published with author's permission.

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