Google's hardware division needs more than a new chip to take on Apple - Business Insider

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Google wants to build a serious hardware rivalry with Apple – but it will take much more than a new chip to fix its messy product strategy

, he downplayed the success of the Pixel 4, suggesting it hasn't been a huge performer for the company.

"Made by Google as a tagline is something that has just come about in the last 18 months, whereas Google has been trying to sell hardware for a very long time," said Rohit Kulkarni, an Alphabet analyst at MKM Partners. "I also think from a regulatory standpoint they are to some degree handicapped, given Android's position in the marketplace," Kulkarni added, referring to Android's current stronghold of over 86% of the global smartphone market. That, he believes, could limit Google's ability to leverage Android's popularity for its own hardware, or otherwise attract attention from regulators.

"I think it's evolving through slow baby steps," said Kulkarni. "If and when they close the Fitbit acquisition I think that will be the third muscle hardware acquisition the company will have taken, [following Motorola and Nest]." As of right now, employees at both Google and Fitbit tell Business Insider that little has changed since the announcement of the acquisition, and will likely remain that way until it is completed.

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