Google (Nasdaq: GOOG) says it is not making a political statement, but the company's decision to "design and manufacture" one of the two devices it introduced today in the United States nevertheless will sound like a clarion call to arms as it stakes out numerous fronts in an intensifying war for market share in the wireless devices market.
That struggle has recently led the company even deeper into the electronics hardware market. It developed the Android operating system to challenge Apple Inc. (Nasdaq: AAPL) in wireless handsets, acquire Motorola Mobility partly to gain patents and armor itself against lawsuits, and today launch two hardware devices, including a tablet PC and media player.
A report in The New York Times indicates Google isn't hesitant about engaging in some subtle propaganda messaging too. Google's Nexus Q media player (launched today), had the words "Designed and Manufactured in the U.S.A." inscribed into its base, according to the New York Times article.
Google executives said the company decided to manufacture the Nexus Q, a wireless device that can stream music and video from You Tube when connected to a TV or a speaker system, in the US because "we've been absent for so long, we decided why don't we try it and see what happens?" Andy Rubin, the executive cited reportedly claimed Google "was not engaged in a crusade."
Google may not be interested in a crusade but it may have started one, wittingly or unwittingly. The subject of where US-headquartered companies manufacture their devices is a touchy one in the country and many enterprises have had to withstand withering criticisms leveled by folks angered by the outsourcing of production jobs over the last 20 or so years to lower-cost centers in the Far East and Eastern Europe.
Google's claim that it is merely testing the feasibility of local manufacturing notwithstanding, the ramification of its moves are huge for electronics companies, including rivals like Apple and Amazon.com Inc. (Nasdaq: AMZN), with which it is now locked in a nasty fight for market share in the wireless devices market. Today, Google also unveiled its first tablet PC, a seven-inch screen device many believe is aimed squarely at Amazon's Kindle tablet and smaller form rivals like the Nook from Barnes & Noble.
Will Google follow the Nexus 7 with a larger tablet PC to take on Apple's iPad? I believe this is very likely. At least, I won't be surprised if Google starts selling a larger tablet PC. The Nexus 7 tablet PC from Google was manufactured in Asia, unlike the Nexus Q media player. But what if Google finds -- from the Nexus Q experience -- that a locally produced device can be profitable and competitive against rival equipment made elsewhere? That may move the company to start manufacturing both the Nexus 7 and a larger variant in the United States, putting pressure on rivals to seriously consider the hidden benefits of local production.
"Hey, wait a minute. Can Americans even find the US on a map? You could put a map of Finland on the case and mark it "USA," and no one would know."
True. I have some stories about real cases. On the other hand, Finland is so small that they would think the map marked as U.S.A. is only the Amercan state where Google has its new U.S. manufacturing site.
Sometimes for me,it gets really confusing to decide if you are being Serious or being Sarcastic[That's one of the big disadvantages of Social Media];U cant (as of yet) sense Emotions of the other person.
My Sense is you are being Sarcastic here.
Don't be.
The tide is changing decisively in favor of US Manufacturing today(especially to serve American Consumers);primary reason is Logistics and Cheap Energy(thanks to the Shale Gas boom).
Susan, probably the consumers might buy local products manufactured by Google compared to other ones'. But I think the price would be the decisive factor. With the cost of labor high in the US compared to other manufacturing areas I think the overall cost of Google products might equal those of the Apple products.
Tirlapur, I agree if the price of Google's product compares favourably, the quality is high, I'm sure it'll be preferred locally. But will it create a dent in Apple's product?. Even if it did, can the impact be significant? I think this move will not threaten Apple's product because it's not clear where this might lead. It is indeed a giant move. It may force the hands of other major players to rethink moving their productions in part back to local shores. We just have to see how it works out.
"China(especially the part where all the Electronics manufacturing happens) is blowing up because of serious tension between Immigrants and Residents."
Looks like a garment manufacturing district in China is having problems with migrant workers from another area of China. The migrant workers are upset over unequal wages and treatment, compared with locals, according to the news story. This has resulted in China blowing up, and Google deciding to make a space elevator, or something, using Mexican workers in the US.
Indeed, nice marketing trick. I woudn't be sure if Apple, for example, would follow the lead. But Google's move may represent a fast track in its sales in the U.S. In order to support local manufacturing Americans might choose a Google tablet over the others in the market. I don't think this will influence Apple customers, though.
By moving to the core of the industry and offerings services that keep the system humming, a group within the electronics market has rendered irrelevant the question of ownership and control of the supply chain.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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