Alphabet-owned Google has gradually expanded from the search engine and target-based advertisements. Google CEO Pichai had noted that the company was betting on YouTube, Cloud, and Hardware for the company’s success. While both YouTube and the Google Cloud business are faring pretty well, Google Pixel isn’t as popular.
For the first time, Alphabet listed YouTube and the cloud revenue in the quarterly financial statements. However, there were no details about the hardware sales. CEO Pichai or Google’s Chief Financial Officer Ruth Porat didn’t give away a specific reason for the slow Pixel sales. Apart from the Pixel devices, Google’s hardware also includes Home devices.
However, the sale of Google hardware devices has been slow. Could it be due to stringent competition from other smartphone makers like Apple and Samsung? It’s hard to be certain. Google, however, says that its hardware is a continued investment focus. In comparison, Google’s hardware venture is just three years old, as compared to YouTube that is already nine years in service.
Let’s recall the sale of Google Pixel 3. The smartphone faced fierce competition from similarly priced smartphones like the iPhone and Samsung’s Galaxy S series. Google then launched the Pixel 3A for half the cost for $399 (available for Rs. 30,999 in India). The smartphone did much better than its predecessor. According to research by IDC, Google Pixel 3A sold as many as 4.1 million units in the first half of 2019. The number is almost equivalent to the total sales in 2018! Next came the Google Pixel 4. Even with nearly a $200 price cut, the new smartphone didn’t do so well.
The data reveals that Google customers are spending less on Google hardware devices. Even with premium features and exceptionally good cameras, consumers have still opted for other smartphone makers. Even in India, recent reports reveal that Apple’s premium iPhone have been faring well as compared to the Google Pixel devices. Apart from Apple, premium devices from OnePlus and Samsung are equally popular Android devices. So, should Google shift to making a budget and affordable premium devices? Will this help boost the company’s hardware growth? For now, it’s hard to come to any conclusion, but it will surely drive consumers to check it out as in the case of the Google Pixel 3A.