🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

Google Shutters Project Ara To Streamline Hardware Efforts

Published 09/01/2016, 11:15 PM
Updated 07/09/2023, 06:31 AM
MSI
-
GOOGL
-
AVID
-
BLOX
-
AZPN
-
GOOG
-
Per a Reuters report, it is rumored that Alphabet Inc.’s (NASDAQ:GOOGL) Google has pulled the plug on Project Ara that sought to build modular smartphone. The move is in sync with the company’s plan to streamline its efforts in the hardware segment which includes the likes of Chromebook and Nexus phone.
What is a Modular Smartphone?
A modular smartphone is a device with interchangeable modules for various types of components such as batteries, cameras, speakers etc. Of late, the concept caught the attention of the tech community as it offers a means to reduce electronic waste by prolonging the lifespan of an electronic device. However, their bulkiness and high costs involved in their manufacturing process make them less attractive as a commercial proposition.
Project Ara
Project Ara was launched by Motorola (NYSE:MSI) in 2013. The project was taken care of by the Advanced Technology and Projects group that Google decided to hold onto even after its divestiture of Motorola Mobility to Lenovo in 2014. The company’s aim was to create a phone that could be customized by users according to their requirements.
Google’s plan to launch the smartphone in Puerto Rico fell through in 2015. Early this year, the company had announced the delay of the launch to 2017. Moreover, after the Ara team announced that the smartphone would have a fixed CPU, antennas, GPU, battery, display and sensors in place of the earlier fully modular design, Ara lost its charm.
What’s Next?
While it is now clear that Google will no longer be releasing the device, it may consider licensing the technology to a third party manufacturer. The question remains - if Google couldn’t do it, will someone else be able to?
ALPHABET INC-A Price

Zacks Rank & Key Picks

Currently, Alphabet carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology space include Avid Technology, Inc. (NASDAQ:AVID) and Infoblox Inc. (NYSE:BLOX) , both sporting a Zacks Rank #1 (Strong Buy) and Aspen Technology, Inc. (NASDAQ:AZPN) , carrying a Zacks Rank #2 (Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>


AVID TECH INC (AVID): Free Stock Analysis Report

ASPEN TECH INC (AZPN): Free Stock Analysis Report

INFOBLOX INC (BLOX): Free Stock Analysis Report

ALPHABET INC-A (GOOGL): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.