Google has returned to the game!

October 20, 2022

Let's talk about Apple. Over the past few years, Apple has basically built a hardware portfolio. Now, what does that mean? Over the years, Apple has released many devices - iPhone, iPad, Macbook, Apple Watch, Airpods, and more. They have built an ecosystem for the users. And...Google is doing the same.

In today's email:

  1. How Google is making a plan to compete with Apple's impeccable ecosystem.

  2. Save your money from Inflation before it's too late.

The Era of the Google Ecosystem

Let's first talk about Apple.

Over the past few years, many companies have launched their so-called "iPhone killer" phones but none were a match for the iPhone.

What could be the reason for this you may ask? It is Apple's uniformity. Apple has done a beautiful thing by making its end-user experience as seamless as possible. It is more efficient for people to operate and work on Apple devices because they have built an ecosystem where people can work more efficiently.

Android cannot replicate this move of Apple since it is an open-source OS. Android has to cater to many brands which result in poor specialization and work efficiency.

A New Rival to Apple...

Google, with its Pixel devices, has the ability to compete with Apple's flawless ecosystem. The tech-giant Google is serious to make an entire ecosystem that would be able to compete with Apple and some say they can do it better...

Over the past few years, Google has done considerable changes to the Pixel Phones by refreshing its hardware and software entirely. Google, with its launch of Pixel 6, announced the new Tensor chip. Now, what made Google produce their own chip? Google had to do it because other smartphone brands were putting effort into designing their own chip. Google's Tensor chip gives PixelOS an edge over other smartphones because Google can exploit its control over Android by updating the OS so it works exceptionally with the Tensor chip.

With the launch of Pixel 6, Google has made tremendous improvements to its software as well. They have optimized the Pixel devices to work amazingly with all the Google services. This means that Google will perform the best on Pixel Phones providing Google with a major advantage.

After looking briefly at Google's actions, it is evident that the company is planning to build an entire ecosystem that would rival Apple's exemplary ecosystem. Since Pixel's ecosystem is new, it will take some time to mature and establish its ground in the smartphone industry.

Save Yourself from Inflation!

A 50-dollar note may not be worth the same in the next 12 months. This sounds weird when you think of it but thanks to inflation, the value of our money is decreasing day by day. Now, how exactly does the value change you may ask?

The inflation rate is measured on two terms: The Nominal Value and the Real Value. Let's understand this with the help of an example. Suppose you have 100 dollars with you and let's say the rate of inflation is 10% over the next year. When the year ends, the nominal(face) value will remain at 100 dollars. But, because of inflation after the year, you will have to spend 110 dollars to buy something that was 100 dollars in the earlier year.

This chart provides a clear understanding about the purchasing power of a US Dollar

One of the major reasons for inflation happening is because of printing more money. Not many people understand that printing more money doesn't increase economic output - it only increases the amount of cash floating around the economy. When we print more money, the supply of money increases. This results in the demand for goods increasing. But, if the supply of the goods stays steady and doesn't increase along with the demand, the prices of those goods increase. Hence, you have to pay more to buy the goods. This is nothing but inflation.

Why is Inflation such a big problem?

  1. The value of one's savings may decrease. Many people still don't invest in high-risk assets and prefer to save money in banks. But, if the inflation rate exceeds the interest earned on a savings account, then the person is losing money.

  2. Tax may increase. The nominal income rises and due to this, income earners are pushed into a higher percentage of tax brackets. Even though the purchasing power does not increase, an individual pays more money to the government from his income.

  3. Decisions about spending and investing may be affected. If consumers fear increased inflation, they may purchase things sooner than intended in order to avoid paying more. Hence, the spending of an individual or a household may be affected negatively only because of the fear of inflation.

This series provides short, concise explanations for various economics topics.

What should be our take on this?

Get a handle on your expenses, cut down spending money on unnecessary stuff and do invest in assets that could provide you returns that beat inflation. It is that simple but people tend to forget the first two steps and directly jump to the third step.

Check out my recent post on Instagram: "Living within your means has always been a trouble to many people. But, not anymore...😉".

If you wish to know more about inflation, you could see the website attached below👇

Inflation is a decrease in the purchasing power of money, reflected in a general increase in the prices of goods and services in an economy.