Alphabet’s (NASDAQ:GOOG, GOOGL) subsidiary, Google, is now directly competing in the smartphone hardware market with the launch of its new device called the Google Pixel. The handset is aimed squarely at the high end of the market, targeting potential customers of Apple’s iPhone and Samsung’s Galaxy S series, with price points of $650 for the Pixel (in line with iPhone 7 and Galaxy S7) and $769 for the bigger screen Pixel XL (similar to iPhone 7 Plus). With the Pixel, Google is adopting the proven Apple model that a well designed, high-end handset that is tightly integrated with its own software and services garners a premium in the highly competitive smartphone industry. While the device marks an important first step for Google in the smartphone market, it remains to be seen whether the device will bring in sizable volumes yet or pose a legitimate near-term threat to Apple and Samsung.

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