Nest has been riding the struggle bus for the past few years, turning pretty much no profit and putting Alphabet in a difficult decision about what to do with the hardware company. Well, it looks like Alphabet’s plan might be to just squish Nest back into Google’s hardware division, ending the smart home manufacturer’s autonomous stint.
The original plan was to separate some companies off from Google to allow them to build up their own brands. That move kind of made sense, but Nest and Google still had a few overlapping products and keeping them separated caused headaches of their own. Plus, Nest just hasn’t done well on its own.
Re-combining the two companies would give Alphabet an edge to compete with Amazon’s tightly-knit ecosystem of Fire and Echo devices, both of which are making enormous headway in the smart and connected home market. The newest Cloud Cam undercuts Nest, for example, all while offering much better integration with Amazon’s platform than anything Nest offers with Google.
On the other end of that, Google has been slogging into the extremely competitive hardware market with laptops, phones, and other devices. Plus, Google Home is one of the more popular smart home hubs, but you’d never know that it was under the same umbrella as Nest products from watching their commercials and advertising.
There’s no telling where this road ends up, or if the Wall Street Journal report is 100% accurate. But if it does pan out, I think we can expect to see Nest make things exciting again.
source: Wall Street Journal