From Software to Hardware

From Software to Hardware

Online-only companies renowned for their software are now launching their own hardware products one after another.

The driving force behind this business expansion is the belief that they need products that are fully controllable in every aspect to perfectly meet the technical requirements of their own software.

One reason Apple succeeded is that it controls every aspect of its technology, from screen size and memory to security. Now, other companies are seeking the same level of control.

In 2007, Amazon manufactured its first hardware product, the Kindle. The company has recently focused on physical products, releasing the voice-controlled Echo and the Dash Button within six months.

Google, which previously relied on others to manufacture products using its technology, has now launched two of its own brands: the Pixel smartphone and the voice-controlled connected home device Google Home. It has also acquired high-tech hardware manufacturers like Nest.

Voice-activated device Google Home

Nest manages the temperature throughout your entire home. It functions as the hub for your smart home.

Snapchat announced the launch of Spectacles, a pair of sunglasses-style wearable cameras that can record 10-second videos. Users can instantly share footage captured from their own perspective with a single tap.

Incidentally, the company changed its name from Snapchat to Snap last September. Its website emphasizes, "Snap Inc. is a camera company."

Even Uber is developing its own self-driving cars.

Snapchat's Spectacles

These companies are eager to own the IoT (Internet of Things) ecosystem. These are the IoT devices that determine which operating system communicates within the home.

For example, Amazon has secured new partnerships with major consumer goods manufacturers through the development of Dash Buttons, expanding its portfolio of brands.

Hints for Brands

・Hardware sparks diverse software. Just as the iPhone spawned Angry Birds and Instagram—often called the world's most successful mobile games—new devices lead to new apps and opportunities.

• Brands must not only connect with the largest ecosystems but also strive to secure promising talent.

• Hardware embodies a software company's brand essence, reminding us how crucial it is for companies to have a clear vision and focus on it.