Why Google's New Phone Will Soon Be Irrelevant

Entering the hardware business is nothing unusual for an Internet giant like Google. But in launching its Pixel phone last week, Google GOOG is setting itself up to compete with its own direct customers. Unlike its previous Nexus smartphones, where most manufacturing and marketing is carried out by third parties--including Huawei, LG, and ASUS--the Pixel phone is completely Google's own creation. From design to development to branding to marketing, Google is behind it all. But what's peculiar is its determined pursuit in this less-profitable, asset-intensive side of business. Several studies, business academics, and consultants have shown the limits of asset builders, or companies that accumulate physical assets in order to market and distribute physical products.