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Inside Google's Supply Chain Shift

Posted by Precious Silva | July 26, 2016

Google is set to shake up the smartphone market with its own handset.

The move is expected to give Google a tighter grip on the mobile software and hardware market, pitting itself against against Apple's iPhone. As the venture seems promising for Google and its mobile division, the decision is also expected to have a big impact on partner OEMs and their competitors.

 

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Making the switch.

Previously, Google has worked with companies like LG and Huawei to produce its Nexus units—with LG and Samsung serving as the OEMs, controlling the supply chain. This is the reason why the Nexus has become such a hot topic device: companies hold different opinions when it comes to owning the Nexus devices they manufactured for Google.

But when Google releases its own handset, the company will have more control over end-to-end manufacturing, which means more control over the phone it wants in the hands of its users.

Here's to the future.

Google's track record shows that it can develop an excellent smartphone, with new opportunities awaiting as it transitions into an OEM. Google expects to release its handset before the year ends, and it will be interesting to see if the company will also set up physical stores and develop partnerships with carriers as a part of its success strategy. To start, the company will likely begin looking for the right distribution channels and supplier relationships, led by the expertise of its new hardware division chief.

The Android platform is a thriving part of Google's success. It accounts for around 85% of the market share and emphasizes the staying power of Google's brand. A new hardware division is an important first step—a step many users are excited about.

 

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