×

Google seeking more control with Pixel, SunTrust analyst says

Apple, Samsung and Microsoft have all been able to control pre-installed and default apps for mobile devices. Now Alphabet's Google wants its turn, Bob Peck, an analyst at SunTrust Robinson Humphrey said Tuesday.

When asked why Google would launch a new smartphone after failing previously, Peck told CNBC's "Closing Bell," "One reason is the point of control. If you go back to the PC era, the PC creators: HP, Dell, etc., they controlled who got pre-installed, default search engines, etc. As we went mobile, Apple, Samsung and the others, they all controlled those points of control. We think Google wants a seat at that table to not be marginalized, or at least be able to participate in it."

Google revealed its new high-end smartphone, Pixel, on Tuesday. The company is hoping that features like free unlimited storage for pictures and video, Google Assistant and being VR-ready will attract customers looking for an iPhone alternative. The device starts at $649.

Peck also added that data is another reason for Google announcing Pixel.

"[Google] could use the data for AI [artificial intelligence]," Peck said. "And being omni-device available, they can now use that data to fine-tune you even better for higher advertising, targeting and ROI [return on investment], so it drives their core business."

SureVest Wealth Management CEO Robert Luna, who appeared on "Power Lunch" on Tuesday, maintained that artificial intelligence is here to stay.

"I think artificial intelligence is real. If we were talking maybe five or six years ago, it may have seemed like something from 'Star Trek.' But these are things that are happening today," Luna said. "Predictive analytics that the companies are shooting for are actually becoming influenced analytics where these devices are helping you make decisions on things that you may have never thought you needed before."

Despite the unveiling of Pixel, Google Home, a device similar to Amazon's Alexa and its VR device, Daydream, Peck reports that as far as financials, these announcements have "no real impact." Peck said that to make any incremental change, Google could potentially monetize from improvements in ROI and the additional ad dollars it could receive because of it.