Google left no doubt about what market they were targeting with the release of the Pixel and Pixel XL. In case it wasn’t clear, the two phones are priced at $649 and $769 — the same price points as the iPhone 7 and iPhone 7 Plus. While the Pixel and Pixel XL are catching the attention of some iPhone users, the two phones won’t only take customers away from Apple.
Google May Take Market Share from Other Android Manufacturers
The Pixel and Pixel XL may also take customers from other Android device manufacturers. With a high-end smartphone designed by Google available, consumers will be less apt to purchase other companies’ best devices.
The market for budget-priced Android phones will still be flush with third-party manufacturers, but there is a chance that people looking for the latest Android phone on the market will go with Google’s latest phone. Not only do the Pixel and Pixel XL (and presumably future iterations of the line) have amazing features, but they’re also the first phones to feature the latest Android update. They have both the latest hardware and software features.
Consumers Will Benefit from the Pixel and Pixel XL
In most cases, a reduction in competition like this has negative effects for consumers. Google’s move into the high-end smartphone market, though, will have several benefits.
First, the reduction in competition shouldn’t drive up Android smartphone prices because there will still be fierce competition between Google and Apple. The two companies will continue to seek ways to differentiate their phones, and they’ll force each other to keep prices as low as possible for high-end devices.
Second, as other Android manufacturers lose market share of high-end smartphone sales to Google, they may move into a mid-level price range. In the past few years, the market for mid-priced Android phones has gotten smaller and smaller, as makers focused on basic and high-end devices. The mid range, where features and price are balanced to offer great values on feature-right phones, may grow once again.
Finally, some Android manufacturers may find ways to remain competitive in the high-end market by creating truly unique phones. A few companies might come up with unique features that haven’t thus far been thought of. The introduction of new kinds of features could help push the limits of what smartphones can do.
Although Google’s trying to attack Apple with the Pixel and Pixel XL, the two phones will also change the landscape of the Android marketplace. Thankfully, the coming changes will be good for Android users — regardless of whether they purchase either of the phones.
