Google is ‘burning money’ to try to dominate the connected home market

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Whoever accompanies the technology market has already realized: the next battlefield among big business has already been determined, with the giants trying to dominate their home. Proof of this is that Google is “burning” money to make the family of accessories connected to the home and establish itself as the leading name in this industry, beating Amazon and Apple.

Google is 'burning money' to try to dominate the connected home market

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The information comes from the quarterly report from Alphabet, Google’s parent company, which posted astonishing numbers, as always, thanks to the power of the search company’s advertising business. In the first quarter of this year, the conglomerate earned the US $ 31.15 billion in revenues, with a profit of US $ 9.4 billion; both numbers are much higher than the company reported in the same period last year ($ 24.75 billion and $ 5.43 billion, respectively). This, of course, shows that business is going well, in a general scope.

The report, however, details the specific results of Nest, a company that Google acquired a few years ago and which came to the world with a connected thermostat, but which today creates all sorts of devices for the home, which includes cameras security systems, alarm systems, and video doorbells. With the reorganization of Alphabet, Nest was separated from Google but has now returned to its original place, precisely to reflect the company’s investment in connected home appliances.

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However, Nest has generated losses; over the past year, the company’s revenues were $ 726 million, but that did not stop it from closing the period with a loss of $ 621 million.

This shows that Google is not afraid of losing money in a battle that it considers crucial for years to come. The Google Home family speakers are the starting point of a venture that aims to put Google Assistant on all kinds of home appliances, allowing the integration of devices and the use of artificial intelligence to create a whole house connected.

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Today’s market leadership belongs to Amazon, who seems to have first glimpsed the opportunity to put his Alexa wizard on gadgets of all kinds. It will be up to Google to invest heavily in artificial intelligence and marketing to be able to dismantle this advantage.

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