Will Google’s Pixel Challenge Apple’s iPhone?



Pixel unveiled this month

In October 2016, Google (GOOG) (GOOGL) unveiled its Pixel smartphone that comes with Google Assistant. While pre-orders for the Pixel started on October 4 (in the United States, Canada, and Germany), device sales will start on October 20. The Pixel is priced at $649, while customers can get contract deals from Verizon (VZ) starting at $27 per month.

The Google Pixel will be available in the United Kingdom from £599. While the Pixel will have a 5-inch screen, the Pixel XL will have 5.5-inch screen. The Pixel will compete with Apple’s (AAPL) iPhone and Samsung’s (SSNLF) Galaxy S7. The chart below shows a broad comparison between the three phones.

Apple launched the iPhone 7 in September 2016

Apple’s (AAPL) annual event on September 7 garnered a lot of interest among consumers and investors alike. As expected, Apple launched the iPhone 7, iPhone 7 Plus, and Apple Watch Series 2 at the event.

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The 32 GB Pixel is priced at $650 and the 128 GB version at $750. The Pixel XL (32 GB) is priced at $770 whereas the 128 GB is priced at $870. In comparison, the 32 GB iPhone 7 costs $649 and the 128 GB is priced at $749. The 32GB iPhone 7 Plus and the 128GB iPhone 7 Plus are priced at $769 and $869 respectively.

The Pixel and iPhone have targeted the premium smartphone segment and may have difficulty penetrating emerging markets (EEM). Analysts will look at sales of Google’s Pixel closely to see if the technology heavyweight can disrupt the already competitive smartphone market.


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