Apple's vertical integration is formidable but Google are still really struggling with their execution, their Tensor SOCs are consistently years behind Snapdragon in performance and efficiency even after their switch to TSMC this generation. Qualcomm is probably safe at the high end of the Android market for a while yet.
google is competing with a different offering. with a pixel you get google's ecosystem. apple is also not neccesarily top dog in performance (maybe they are - havne't checked lately), nobody buys an iphone because it ranks highly in benchmarks. thats some nerd nonsense that 0.1% of the audience seriously cares about.
for google, pushing 3rd parties out of the supply chain gives them a ton of security and stability concerning pricing and budgeting. its a smart long term move, and i think the industry is going to continue to push towards consolidation and in-housing.
The gap between Google’s and Apple’s SoCs is insane. Current Pixels bench at around a third of what current iPhones do.
Not that performance matters to all users, but with how much Pixels cost you have to ask yourself what it is you’re paying for. Even if you don’t care for Apple, for a little more you can get a competitor for a Snapdragon.