Google Walks a Fine Line at I/O 2024

Written by: Ben Wood

谷歌 I/O grabbed the headlines of the tech world this week, and although most of the focus in the keynote presentation was on artificial intelligence (AI), as we covered in our Instant Insight assessing the event, there were plenty of further updates worth highlighting, in particular efforts to make different elements in the Google portfolio work more closely together.

This comes in light of a substantial internal reorganization last month, which saw the creation of a new team called Platforms and Devices. The group is responsible for all Pixel products, as well as Android, Chrome, ChromeOS, Photos and other related services. It’s headed by Rick Osterloh, who has a strong background in hardware and played a key role in the development of Google’s Pixel devices.

With Mr Osterloh taking on the additional responsibilities of Android and Chrome, which were previously managed by Hiroshi Lockheimer, it brings the software and services part of Google much closer to its hardware business. This makes it more akin to the Apple model of vertically integrating all the elements it needs to make chips, software, hardware and services— and progressively infusing them with increasing levels of AI, in Google’s case, powered by Gemini.

We believe Google will consider this move essential to taking the fight to 苹果 , and it reinforces our view that the company sees Pixel devices as a way to demonstrate “the art of the possible” to Android licensees. This will doubtless trouble Android licensees like 三星电子 , which are already feeling competitive pressure from Pixel devices in some markets.

It comes at a time when many Android device-makers believe that Google should be helping them more in the battle with Apple rather than competing with them with ever-improving Pixel products.

Still, other announcements throughout I/O did highlight Google’s desire to create a strengthened ecosystem of devices and services for all Android licensees. It presented updates on its efforts with Google TV, Android Auto, and cars with Google built-in through Android Automotive OS. For example, Google Cast will become part of Android Automotive OS, making it possible to cast video from an Android smartphone or tablet to a vehicle’s entertainment system.

There was also a notable focus on security in the forthcoming Android 15 release. Apple has long traded on its privacy and security features, so new capabilities addressing these areas in Android should be welcomed. Two examples include Private Space and Theft Detection Lock.

Private Space offers the ability to hide sensitive apps such as those for banking or health, isolating the data and notifications from the rest of the phone. This affords an extra layer of privacy, so if your phone is stolen while unlocked, this content won’t be visible to another user.

Theft Detection Lock seeks to address the growing problem of phones being snatched from users’ hands while in use. The phone can sense what Google calls a “theft motion” and immediately locks itself.

There was also an update on Google’s smartwatch platform, Wear OS. The company revealed that users of Wear OS grew by 40% in 2023, spanning more than 160 countries and regions. This growth is from a relatively small number compared with the Apple Watch, and largely fuelled by sales of Samsung and Pixel smartwatch products, but even so, it’s encouraging to see Wear OS being supported by more Android licensees, including Oppo, OnePlus and Xiaomi. It’s one of the reasons we recently lifted our recent forecast for the global smartwatch market .

For outside observers, navigating Google I/O is a huge challenge given the avalanche of information it delivers. Initial reflections on the event have all centred on Google’s overwhelming desire to land its AI story in the current frenzy of AI announcements from OpenAI , 微软 , Apple and others.

But beyond the AI story, it’s well worth noting the fine line Google is treading by having a more integrated approach to hardware, software and services. We believe the shift toward a more cohesive offering here will concern many Android licensees. In reality, there’s little these companies can do; there are currently no credible large-scale alternatives to Android. Google will argue that it can find a balance, and its continued investment in the Android platform underlines its desire for everyone to be successful, but it needs to be careful to avoid growing tensions with its partners.

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