What about a phone is content? Content is something you spend time watching, or playing - nothing google sells is content, it's all service. All of their content is derived from other people, and they enable content creation on a grand scale. With the exception of a few google blogs and videos, it's all a way to get where you're going, not a thing in itself.
The day there's a google studios, or google game production, or google music labels, they'll be creating content.
A phone is not a service, it's a good and a platform for serving more goods/content in the form of the Google Play store.
What about YouTube or Maps or Apps? YouTube produces it's own content, as does Google Maps.
Again, Google today is not Google c. 2002. They produce massive amounts of content and goods, and being able to control the full distribution pipeline for said content and goods could end up being a significant anti-trust issue.
The day there's a google studios, or google game production, or google music labels, they'll be creating content.