Google (NASDAQ:GOOGL), which is now called Alphabet Inc. is taking on Apple directly. The business has just released their smartphone Pixel. Written at the back is “Phone by Google”, which will certainly create desire among customers to own it.

Most of the smartphone software of Google now runs on devices that are made by companies like Lenovo, LG, and Samsung. Google has been at the background. That changes with the Pixel as the company has done everything here – industrial design to the components that have been used. It is in line with Google’s strategy to control both software and hardware.

Also, hardware makers often change Google’s software making it somewhat different than their competitors. Google has been peeved by this.

Artificial Intelligence Changes Everything

The company says that they have to do this, because of the advances made in artificial intelligence. Chief Executive, Sundar Pichai, says that artificial intelligence allows computers to understand what people are saying and respond accordingly. “It’s a seminal moment in computing that can only be compared with the arrival of the internet, smartphones, and personal computer”.

VP of hardware, Rick Osterloh, says, “If you really want to make a step-change difference, you really have to design the software and hardware together”. Rick has recently come back to Google from Motorola.

Pichai says that in time, they want to have a personal Google for every individual.

Google’s competitors are walking the same path as well with AI.

Amazon is working to integrate Alexa with their hardware products like Fire TV set-top boxes and Fire tablets. Apple too is thinking of expanding the reach of their virtual assistant from the iPad and iPhone into homes with Echo-like devices.

There Can Be Problems Too

However, Google (NASDAQ:GOOGL) may face problems too as it becomes a hardware manufacturer. There will be new challenges like managing inventory, procuring components, and offering customer service that the business will have to deal with.

Google is unfazed though. It is clear that they want to take on the iPhone of Apple with their Pixel. During the presentation, Rick said there is no “unsightly camera bump” in the Pixel, referring to the nub that sticks out from the rear camera of iPhone.

In the commercial, Google says that the phone comes with a headphone jack. There is no headphone jack in the latest iPhones of Apple, which has sparked a furious debate among many techies. A lot of people have criticized this design decision of Apple.