The switch from Google Assistant to Gemini might kill Nest speakers and displays

The switch from Google Assistant to Gemini might kill Nest speakers and displays

  • 21.03.2025 08:32
  • msn.com
  • Keywords: Google Assistant, Gemini, Nest speakers, Nest displays

Google's shift to Gemini may leave Nest speakers and displays outdated, as they cannot support Gemini effectively, leading to potential loss of functionality and usefulness for users.

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Estimated market influence

Google

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Analyst rating: N/A

Google is deprecating features from Google Assistant and shifting focus to Gemini, which may negatively impact Nest devices.

Gemini

Gemini

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Analyst rating: Buy

Gemini's integration issues with older Nest hardware could lead to reduced functionality for users.

Context

Analysis: The Switch from Google Assistant to Gemini and Its Impact on Nest Products

Key Facts and Data Points

  • Feature Deprecations:

    • 18 features removed in early 2024.
    • Additional 7 features deprecated recently, including voice control for photo frames and ambient screens.
    • Loss of daily updates, favorites, sharing, and voice-based photo queries.

  • Hardware Age:

    • Nest Hub (2nd gen) and Nest Hub Max last updated in 2021.
    • Nest Mini smart speaker last updated in 2019.

  • Pricing Strategy:

    • Affordable pricing historically: $50 for speakers, $100 for displays.
    • Potential shift to premium pricing for Gemini-powered hardware.

Market Trends and Business Impact

  • Declining Utility of Nest Devices:

    • Aging hardware struggling with performance issues.
    • Users report bugs and loss of functionality over time.

  • Shift in Google's Focus:

    • Increasing emphasis on Gemini, leading to neglect of Google Assistant features.
    • Smart home devices reliant on Google Assistant may become obsolete.

Competitive Dynamics

  • Risk of Market Exit:

    • Nest hardware could become less functional and desirable.
    • Competitors like Amazon (Alexa) and Apple (Siri/HomeKit) may gain market share.

  • Premiumization Strategy:

    • Potential move to higher-priced, more powerful devices (e.g., Pixel Tablet).
    • Risk of alienating budget-conscious customers who valued affordable Nest products.

Strategic Considerations

  • Customer Loyalty at Stake:

    • Users invested in Nest ecosystem may switch brands due to diminishing functionality.
    • Need for Google to balance Gemini development with maintaining existing product lines.

  • Regulatory and Competitive Risks:

    • Potential antitrust scrutiny if market dominance is leveraged against competitors.
    • Impact on consumer choice and innovation in the smart home sector.

Long-Term Effects

  • Erosion of Brand Identity:

    • Shift to premium hardware may alter Nest's "affordable, reliable" brand image.
    • Risk of being perceived as a niche, high-end brand rather than a mass-market leader.

  • Potential Market Share Loss:

    • If Nest devices become less functional or more expensive, users may adopt competing platforms.
    • Long-term viability of Nest products tied to Google's commitment to maintaining their utility.