Alphabet’s Google (NASDAQ:GOOGL) is gearing up to enhance its Android Messages app through a series of new features. The company is introducing an in-app contacts page, a departure from the previous method of tapping the photo and name at the top of a conversation.

The updated layout features the profile picture, name, and number centered at the top, accompanied by circular shortcuts for phone calls, opening Google Contacts, and searching. Google is also incorporating a Material 3 carousel into the Messages app, allowing items to dynamically expand and shrink while scrolling, showcasing videos, links, and more.

Among the additional features, the update includes shortcuts to notifications, spam blocking, end-to-end encryption status verification, and group conversations. A dedicated “people” section is introduced for group discussions.

Alphabet anticipates gaining significant traction among Android users with these latest enhancements.

More on Google Messages

This move aligns with Alphabet’s ongoing commitment to updating its Google Messages app with cutting-edge features. The integration of generative AI capabilities, known as Magic Compose, allows the app to read conversations and generate responses based on user needs. Magic Compose can craft professional messages or inform others of one’s absence from work.

Recent updates also introduced a “plus” shortcut, providing a redesign for Android users with a left-facing compose field, an emoji shortcut, Magic Compose, a new Gallery icon, and a plus menu on the right. Furthermore, Photomoji for reactions and stickers, along with a camera shortcut on the new homescreen, were introduced.

Conclusion

These ongoing efforts are expected to strengthen Alphabet’s Android offerings, particularly boosting its Google Services segment, which constitutes a significant portion of GOOGL’s total revenues. In Q3 2023, Google Services’ revenues rose by 10.8% YoY to $67.99 billion, representing 88.6% of total revenues.

Estimates for Q4 2023 project Google Services revenues at $72.79 billion, reflecting a 7.3% growth from 2022. The anticipated strength in this segment is poised to positively impact Alphabet’s overall financial performance, instilling confidence among investors. Model estimates for Q4 2023 total revenues stand at $81.95 billion, indicating a YoY growth of 7.8%.

Alphabet’s shares have demonstrated a robust performance, rallying by 50.3% on a year-to-date basis, slightly trailing the industry’s growth of 51.3%.

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