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What Pixel 3a tells us about the state of the smartphone — and Google – TechCrunch

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Announced yesterday at Google’s opening I/O keynote, the Pixel 3a arrives at a tenuous time for the smartphone industry. Sales figures have stagnated for most of the major players in the industry — a phenomenon from which Google certainly isn’t immune.

CEO Sundar Pichai discussed exactly that on the company’s Q1 earnings call last week. “While the first quarter results reflect pressure in the premium smartphone industry,” he explained, “we are pleased with the ongoing momentum of Assistant-enabled Home devices, particularly the Home Hub and Mini devices, and look forward to our May 7 announcement at I/O from our hardware team.”

That last bit was a clear reference to the arrival of the new budget tier of Google’s flagship offering. The 3a is a clear push to address one of the biggest drivers of slowing smartphone sales. With a starting price of $399, it’s a fraction of the price of top handsets from competitors like Apple and Samsung.

There’s been a fairly rapid creep in flagship prices in recent years. Handsets starting at north of $1,000 hardly warrant a second glance anymore, while many forthcoming foldables are hovering around double that.

As Google VP of Product Management Mario Queiroz told me ahead of launch, “The smartphone market has started to flatten. We think one of the reasons is because, you know, the premium segment of the market is a very large segment, but premium phones have gotten more and more expensive, you know, three, four years ago, you could buy a premium phone for $500.”

Inflated prices have certainly made device purchases more burdensome for buyers. That, coupled with a relative lack of compelling new features has gone a ways toward slowing down upgrade cycles, hurting sales in the process.

I’ve enjoyed my early hands-on time with the 3a — more to come on that later. It’s important to note the different factors that have allowed Google to get to this stage. A key driver is, of course, Google’s purchase of massive R&D resources from HTC. That result of HTC’s dip into sub-replacement level hardware manufacturer has resulted in the ability to develop hardware in house, on the relatively cheap at a new campus in Taipei.

Also important is Google’s ongoing quest to further uncouple the importance of hardware from smartphone upgrades. The company’s big investments in machine learning and artificial intelligence particularly are driving many of the innovations best demonstrated on the imaging side of things. Devin captured this sentiment in this piece written in the wake of the iPhone XS announcement.

Notably, the Pixel 3a has essentially the same camera hardware as the pricier 3. Google cut some corners here, but that wasn’t one. There are still and will continue to be some limitations to what the 3a is able to do, based on processing power, but the line between what the two devices can do is already pretty blurry when it comes to taking photos.

There’s another factor that’s been looming over Pixel sales in all of this — but for several reasons, Pichai wasn’t ready to discuss it on the call. For years, the line has been hampered by carrier exclusivity, something that feels like it ought to be relegated to the smartphone past.

Certainly that sort of arrangement makes sense for young companies like OnePlus or Palm, which are looking for a way into a market, while seeking to maintain manageable growth. But Google certainly has the resources to grow outside of a single carrier deal. And the fact of the matter (as Huawei has discovered the hard way) is that carrier distribution and contracts as still key drivers of smartphone distribution here in the States, even as most manufacturers also offer unlocked devices. I suspect those upfront costs are enough to make many consumers do a double take — even though we all know in our hearts the contract is ultimately where they get you.

Thankfully, Google announced that it will be making the Pixel 3 and 3a available on a lot more carriers, starting this week. That move ought to have a marked impact on the Pixel’s sales figures going forward. The addition of Sprint and T-Mobile among others means a lot more retail shelf space and ad dollars across the U.S. Devices are a harder sell when your average consumer has to go out of their way to find them — not to mention the difficulty of convincing users to switch carriers for a new device.

I’d caution against using Q2 results as a direct measure of the 3a’s appeal and Google’s move toward a six-month device release cycle. At this early stage it’s too early to uncouple that from new customers who are coming on board courtesy of those carrier additions. Even so, the device is an interesting litmus test for the current state of the smartphone, right down to the return of the headphone jack.

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Samsung will announce new foldables on August 11 – TechCrunch

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Samsung just sent out invites for its next Unpacked event. There are those companies that like to sneak hints into their invites — and then there’s Samsung. The note leads with the big, bold words “Get ready to unfold” and features a pair of flat-colored objects that can reasonably be said to resemble the form factors of the Galaxy Z Fold and Flip, respectively.

In keeping with…the general state of the world over the past year-and-a-half, the event will be held virtually on Wednesday, August 11. Interestingly, the company is also opening up preorders on its “next flagship,” sights and specs unseen. Perks for early preorders include “12 free months of Samsung Care+, up to an extra $200 trade-in credit and a special pre-order offer.”

But honestly, it’s generally best to wait until you actually see the thing and maybe even read a review or two.

There’s a lot to unpack (so to speak) ahead of the event. First, I’m probably not alone in expecting that the company would focus its next big event on the upcoming Galaxy Watch. The big event at MWC was a bit of a dud (not unlike MWC itself), offering up more information on the upcoming wearable partnership with Google, in lieu of announcing any hardware.

As the company noted at the time, “The upcoming One UI Watch will debut at an upcoming Unpacked event later this summer, sporting the new UI, as well as the forthcoming joint Samsung/Google platform.”

It seems reasonably likely that this will be the event where that will occur, even if the new watch doesn’t get top billing. For one thing we’re running out of summer. For another, rumors have the new Galaxy Watch set for a late-August (the 27th) release.

All told, this could well be a pretty huge summer event for the company, bucking last year’s trend of meting out devices one by one at virtual invents. Word on the street is we could be seeing a Galaxy Watch 4, Galaxy Z Fold 3, Galaxy Z Flip 3, Galaxy S21 FE (“Fan Edition” — basically the latest version of the company’s budget flagship) and even the Galaxy Buds Pro, which will more directly take on the AirPods Pro (which are getting a bit long in the tooth).

What’s missing in all of this? No points if you said the Note. Samsung’s well-loved phablet is reportedly not coming this year, as chip shortages continue to plague the industry. That would be a big hit to Samsung’s six-month cycle, though we’ll see how that all plays out soon enough.

The August 11th event kicks off at 10AM ET / 7AM PT.

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Kdan Mobile gets $16M Series B for its cloud-based content and productivity tools – TechCrunch

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Kdan Mobile founder and CEO Kenny Su. Image Credits: Kdan Mobile

Kdan Mobile, a company that provides a wide range of cloud-based software, including AI-based tech for organizing documents, has raised a $16 million Series B. The round was led by South Korea-based Dattoz Partners, which will also take a seat on Kdan Mobile, and included participation from WI Harper Group, Taiwania Capital and Golden Asia Fund Mitsubishi UFJ Capital.

Launched in 2009, Kdan Mobile has focused on developing content creation and productivity software for mobile devices from the start, founder and chief executive officer Kenny Su told TechCrunch. “We’ve observed more and more industries embracing remote or hybrid work for years now, even before 2020,” he said. “We always sensed that trend would continue.”

Kdan Mobile has now raised $21 million in total. Since announcing its Series A in April 2018, Kdan Mobile has grown from 70 employees to 200 in Taiwan, China, Japan and the United States. It also passed 200 million downloads and now has more than 100 million members on its platform. More than half of Kdan Mobile’s users are in the U.S. and Europe, 30% from Asia and 15% from Africa and Australia.

Part of the funding will be used to develop Kdan Mobile’s enterprise products, including Document AI, its data processing and filtering technology, and SaaS products like e-signature service DottedSign, PDF software Document 365 and Creativity 365 for multimedia content creation, including animations and video editing.

After focusing primarily on individual users, Kdan Mobile decided to start working with more enterprise clients in 2018 and its software is now used by more than 40,000 businesses and educational organizations. Su said the company’s focus on enterprise was validated with the 2019 launch of DottedSign, which now has more than 300,000 users. During the past year and a half, the number of signatures processed by DottedSign increase by 30 times as companies switched to remote work because of the pandemic. Kdan Mobile also began offering a set of APIs and SDKs so internal developers at large enterprises can integrate and customize its technology.

“We use a lot of what’s called B2C2B approach, or business to consumer to business, meaning that we still try to connect with users at the individual level, but do so in a way that we hope they’ll adopt our solutions at the company level,” said Su.

Document AI was launched in 2021 after Kdan Mobile found that many of its users wanted to reduce the amount of time they spend managing documents. Its features include optical character recognition, smart tagging and search, and protection for sensitive data. Some examples of how Document AI can be used include automating data-entry tasks and creating summaries of research documents.

When asked how its products differentiate from those offered by Google, Microsoft and Adobe, Su said one way is that Kdan Mobile has always created products for mobile first, before designing the user experience for other devices, with the idea of serving professionals who are on the move a lot.

On the other hand, Kdan Mobile doesn’t necessarily see itself as a competitor with those companies. Instead, its solutions are complementary. For example, it creates files that are compatible with Adobe products and is integrated with Google Workspace, Zapier and, in the near future, Microsoft Teams.

“In that regard, it’s about helping users where they are, rather than trying to sway them away from existing products or services,” Su said.

In statement, Dattoz Partner CEO Yeon Su Kim said, “We see tremendous growth in the market for software and solutions that empower the post-pandemic hybrid workforce. Kdan’s powerful product suite and the leadership team’s ability to executive have led to its strong momentum in several key markets, including the U.S. and Asia markets.”

 

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Yummy raises $4M, aims to be ‘super app of Venezuela’ – TechCrunch

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Yummy, a Venezuela-based delivery app on a mission to create the super app for the country, announced Friday it raised $4 million in funding to expand its dark store delivery operations across Latin America.

Funding backers included Y Combinator, Tinder co-founder Justin Mateen, Canary, Hustle Fund, Necessary Ventures and the co-founders of TaskUs. The total investment includes pre-seeding capital raised in 2020.

“This appears to be a contrarian bet, but Yummy has quickly become the No. 1 super app in Venezuela and proven that the team can scale the business in a difficult territory,” Mateen said in a statement. “Now Vicente and the rest of the Yummy team will expand into more traditional markets with the necessary experience and support to overcome inevitable challenges that they will face.”

Vicente Zavarce, Yummy’s founder and CEO, launched the company in 2020 and is currently part of Y Combinator’s summer 2021 cohort. Born in Venezuela, Zavarce came to the U.S. for school and stayed to work in growth marketing at Postmates, Wayfair and Getaround before starting Yummy. Zavarce was a remote CEO over the past year, stuck in the U.S. due to travel restrictions, but said he is making the most of it.

Yummy’s app can be downloaded for free, and the company charges a delivery fee or merchant fee. In contrast to some of his food delivery competitors, Zavarce told TechCrunch Yummy’s fees are “the lowest in the market” so they do not affect the merchant’s ability to use the app.

Yummy order heat map. Image Credits: Yummy

The company is pulling together additional key components for its super app strategy, which includes launching a ridesharing vertical this year. Yummy has already connected more than 1,200 merchants with hundreds of thousands of customers.

And, over the past year the company completed more than 600,000 deliveries of food, groceries, alcohol and shopping. It reached $1 million in monthly gross merchandise volume while also growing 38% in revenue month over month.

Over the past eight years, the political and economic challenges faced by the country have led to its recent adoption of the U.S. dollar, Zavarce said. In some cases up to 70% of transactions are happening in dollars on the ground. He said this has protected the business against hyperinflation and ultimately created the opportunity for startups to begin operating in Venezuela.

Because of that, combined with more consumer technology innovation over the past decade, Zavarce said there is no reason why Venezuela should not have the best last-mile logistics. It’s there that Yummy has an opportunity to connect multiple vertices into a super app with little to no competition.

“Eventually, other players will enter, but because we have a super app, we already have an amazing frequency of usage,” he added. “We also already have exclusivity with 60% of the food delivery marketplace, which has enabled us to build a moat around the market. We believe we are the right people to execute on this and feel it is our responsibility to do it.”

Plans for the new funding include user acquisition — the company has close to 200,000 registered users already — and to expand in Peru and Chile by August. At the same time, Zavarce will spend some of that capital to attract more users across Venezuela. He also expects to be in Ecuador and Bolivia by the end of the year.

 

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