Google Wants You to Hangout Instead of iMessage

Google  (NASDAQ: GOOGL  ) is rumored to be adding SMS functionality into its new Hangouts app, which is a unified messaging platform that consolidated all of Google's previously disparate offerings. Hangouts is now available on numerous platforms, but adding SMS texting support would allow it to tap into existing network effects. That would give it a much better chance of making a dent in messaging.

Seamless integration with phone numbers has allowed Apple's (NASDAQ: AAPL  ) iMessage to soar in adoption, since there is no effort required from the user's perspective. iOS devices automatically detect and send texts for free -- it just works. Apple says it now sends over 2 billion iMessages per day, which inevitably also chips away at carrier revenues.

Messaging has become an important battleground for the tech giants. BlackBerry once dreamed of making its BBM service the new standard in messaging, known as its "SMS 2.0" initiative, but it failed to take off. Facebook has its Messenger app, which has inherent network effects since Facebook is the largest social network on the planet.

In this segment of Tech Teardown, Erin Kennedy discusses mobile messaging with Evan Niu, CFA.

Be a smarter Google investor
If someone asked you, "Why invest in Google?", could you truly answer them? To be honest, few investors could. That's because most of the company's secrets -- the ones that make savvy market-watchers rich -- often fly below the radar. If you want an edge on other Google investors, be sure to check out "5 Secrets to Google's Future" from The Motley Fool. This 100% FREE guide includes actionable advice that you can put to use right now! Just click here now for instant access!

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2676127, ~/Articles/ArticleHandler.aspx, 9/26/2016 10:22:24 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 hour ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 4:00 PM
GOOGL $802.65 Down -12.31 -1.51%
Alphabet (A shares… CAPS Rating: *****
AAPL $112.88 Up +0.17 +0.15%
Apple CAPS Rating: ****
BBRY $7.82 Down -0.09 -1.14%
BlackBerry CAPS Rating: *
FB $127.31 Down -0.65 -0.51%
Facebook CAPS Rating: ***