Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) is hanging up the gloves when it comes to Project Ara, the company’s initiative to build a smartphone with interchangeable modules. The customization would allow users to swap out cameras, speakers and batteries.
“The decision is said to be part of an effort to unify Google’s hardware development under former Motorola president Rick Osterloh.”
Google is getting good at cutting ties with what’s not working. Or at least, cutting back its resources on such projects. The company has reportedly slashed its workforce on Google Fiber, after the company has experienced higher-than-expected costs. Now it’s scrapping its Project Ara, (although it may license the technology to other companies).
It seems that CFO Ruth Porat really is applying the type of financial discipline that investors were hoping for. Enough to juice operating margins and boost the bottom line, without sacrificing the company’s future revenue growth. Although its “other bets” division is still seeing losses outpace sales, one has to expect the company to continue taking some “moonshots.”
