Will Apple sink to the new Google Pixel 3A’s level?

In price, that is.

From Bill Maurer’s “Google Takes Its Apple Shot,” posted Tuesday on Seeking Alpha:

What separates this offering from the previous Pixel ones is price and carrier availability. These two smartphones go for $399 and $479, well below the previous models as well as all newer iPhones. Also, T-Mobile, Sprint, and US Cellular join for support, as opposed to the previous generations that were Verizon-exclusive. Carrier availability was one of my main arguments against the phones previously, as it reminded me of the failed BlackBerry Priv launch.

I’m curious to see if there will be any major response from Apple when it comes to the iPhone. Do we perhaps see the iPhone get a little cheaper when it is launched later this year, as consumers seemed to push back against higher prices last year? Or, does the company maybe satisfy a small niche of consumers by launching a new version of the SE, a smaller screen device that could come in at a lower price point?

Before all of the Apple supporters come rushing at me, I am not arguing that Google is going to eat Apple’s lunch anytime soon. However, the launch of a cheaper device with more carrier availability is something to watch in the coming quarters. Not only is Google trying to steal market share in terms of unit sales but pushing consumers away from Apple services as much as possible as well. A few million more unit sales will not make a big impact on Apple this year, but this is definitely a stronger shot than Google has taken previously. Where this becomes an issue for Apple is if the Pixel line continues to grow moving forward with Google trying to expand sales into the tens of millions of units per year.

My take: Ballsy move on Google’s part. Reviews are pretty good. See here.

10 Comments

  1. Peter Kropf said:

    Google’s already paying Apple a share of advertising revenue per iPhone.

    Does anyone have an estimate of what the cost is?

    From G’s view, any Google phone sold is sold without this iPhone ‘tax’.

    1
    May 8, 2019
  2. Michael Thompson said:

    The only thing that Google will achieve by dropping to $399 is to lower the amount that other COPYCAT Androids can charge for their phones. It will have NO impact on Apple whatsoever.

    6
    May 8, 2019
  3. Robert Paul Leitao said:

    In a mature product market, price capitulation is a classic move by manufacturers to boost unit volume. In the Android sphere, most handsets sold are nearly indistinguishable from each other in terms of features and performance. To achieve a lower price the 3A doesn’t offer a fast processor or water resistance. What it does offer as a Google handset is Android updates when they are released and a decent camera. For consumers willing to forgo some modern features, it’s not a bad headset at the offered price.

    It is not, however, a competitor to the iPhone. Lower-priced iPhones are widely available in the robust global market for pre-owned handsets. The 3A is yet another entrant in the highly fragmented Android handset market. It may be an attractive lower-cost handset for Android services purists as long as the owners are adept at keeping their handsets away from water and for consumers who aren’t concerned with impressive performance. It will take decent pictures.

    4
    May 8, 2019
  4. Fred Stein said:

    Remember when bloggers, etc. claimed that the Palm would be an iPhone killer?

    4
    May 8, 2019
  5. David Emery said:

    Has anyone calculated the ‘average ecosystem cost’ of moving from Apple to Android, or vice versa? That includes handset, contract/carrier contributions, apps, data (I have gigabytes of CDs ripped to AAC), etc.

    1
    May 8, 2019
    • David Drinkwater said:

      I don’t know the answer to your question, but I can say that I happily use an iPhone for two years. To me, that means I don’t buy a cheap Android POS four times. Which would cost about one iPhone.

      0
      May 8, 2019
  6. Aaron Belich said:

    Duck Duck Go’s traffic stats:
    https://DuckDuckGo.com/traffic

    1/1/2018: 16.1 million
    1/1/2019: 25.4 million

    And it’s growing faster and faster…

    Given various pro-Apple pundits have been pushing DDG, as well as Apple banging the privacy drum, it stands to reason that Google is losing queries to those that are part of the demographic that typically buys stuff.

    Granted it’s a drop of the drop in the bucket compared to the two trillion searches annually that Google claims… but again, it’s not market share that everyone cares about.

    4
    May 8, 2019

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