Google launches cut-price smartphone, Pixel 3a, undercutting Apple, Samsung, Huawei phones

Even Google thinks we’re paying too much for smartphones, with some over $2000. The tech giant’s new models will cost less than a third of that price.

Google’s last flagship smartphone, the Pixel 3, was met by disappointing sales. Picture: Jack Taylor/Getty Images

TECH giant Google is making an aggressive push into the Australian smartphone market, unveiling a cut-price handset that is less than half the price of its three major rivals.

The Pixel 3a, which will launch in local stores today, will cost at least $1700 less than top models from Samsung and Apple.

But industry experts warn the cheap handset may not be a “silver bullet” to reignite interest in Google’s phones amid stiff competition, slow sales, and concerns about privacy.

Google product management vice-president Sabrina Ellis revealed the heavily rumoured Pixel 3a and Pixel 3a XL handsets at the company’s annual developers conference in Mountain View this morning, confirming the discounted phones would be roughly the same size and with many of the same features as its more expensive predecessors.

Google has released a cheaper, cut-down version of its flagship phone called the Pixel 3a.

The Pixel 3a will cost $649 in Australia, or less than a third of the cost of the top smartphones from market leaders Samsung and Apple at $2399 and $2369 respectively.

The new Google phone will even significantly undercut rivals’ discount phones, the Samsung Galaxy S10e and Apple iPhone XR, by up to $580.

Google spokesman Nanda Ramachandran said the internet giant decided to produce cut-price smartphones after noting some potential buyers were “locked out” of the smartphone market while others “just didn’t see the value” in a $1500 or $2000 phone.

“We’ve noticed that flagship experiences are becoming more and more expensive for more users so that is why we are excited to bring this new product and new innovations to market,” he said.

“Our goal with the Pixel 3a is to redefine the (entry-level smartphone). It needs to be more accessible to more people.”

The new handsets will feature 5.6-inch and 6-inch OLED screens, the same rear fingerprint scanner and 12.2-megapixel rear camera as Google’s other smartphones, and a shortcut allowing users to squeeze the phone to bring up Google Assistant.

The Pixel 3a will also add a time-lapse camera feature and augmented reality navigation in Google Maps.

Google CEO Sundar Pichai was one speaker at the company’s annual developers conference in California. Picture: Josh Edelson / AFP

But the new phones will not feature wireless charging, do not offer a wide-angle lens for group selfies, and are less water resistant than their more expensive Pixel peers.

Google recently revealed it had sold fewer Pixel smartphones year-on-year, blaming strong competition and “recent pressures in the premium smartphone market” for their dive in popularity.

Telsyte managing director Foad Fadaghi said releasing a cheaper version of their own phone could boost sales, but warned Google faced strong competition from Samsung and Huawei that had seen other companies falter.

“They haven’t been selling as much as Google would have liked so maybe a budget version will help spark interest in Pixel phones,” he said.

“There is a lot of competition in the Android market and companies have struggled like LG, Sony, and HTC.”

The Pixel 3a and 3a XL will go on sale today at Vodafone, and in major electronics retailers.

Jennifer Dudley-Nicholson travelled to Mountain View as a guest of Google.