A big day for new Google goodies

In recent years, the conference has focused on smartphones and tablets, but this year Google’s Android operating system is expected to stretch – into cars, homes and smartwatches.Pacific Crest analyst Evan Wilson believes Google will unveil a new version of its Android operating system – possibly called Lollipop – with a “heavy focus” on extensions for smartwatches and smart home devices.

“We think Google will directly counter Apple’s recent announcements of health products (Apple HealthKit) and home automation (Apple HomeKit),” Wilson wrote in a note to investors.

This year’s Google I/O comes at a time of transition for the company, which makes most of its money from advertising thanks to its status as the world’s leader in online search. The company is trying to adjust to an ongoing shift to smartphones and tablet computers from desktop and laptop PCs. Though mobile advertising is growing rapidly, advertising aimed at PC users still generates more money.