[ad_1]
Google has a simple but subtle reason to enter the mid-market smartphone market: there is too much competition in the high end.
Next month, the first day of its I / O developer conference, Google is expected to introduce its new, cheaper Pixel 3a and 3a XL. Ruth Porat, chief financial officer of Alphabet, Google's parent company, said the industry-wide pressure on high-end phones had led to a decline in pixel sales in the past quarter compared with the same period last year. the same period last year. Porat specifically cited "some of the recent pressure on the premium smartphone market".
Maybe making more than $ 1,000 worth of phones is not a good idea after all?
– Janko Roettgers (@ jank0) April 29, 2019
Although Porat did not specify the nature of these pressures, it can be surmised that she was referring to increased competition from Apple and Samsung, at high prices reducing consumer demand and spurring consumer demand. Smartphone owners keep their devices longer than annual update cycles. that the mobile industry is attached.
Sundar Pichai, CEO of Google, also asked investors to worry that the company's hardware efforts would have little effect on its overall revenue, which still depends heavily on slowdown in its advertising activity. An analyst asked himself openly, during the call, whether the Pixel line was representative of Microsoft's failing smartphone market.
Pichai is also being hammered on Google's hardware, which does not represent a significant business figure when compared to commercials, especially since ads are slowing down. An analyst even asked if we had another Microsoft in the hands (!). (Pichai was defensive, said Google is committed for the long term, but later.) Https://t.co/4qTGvfOqHM
– Ingrid (@ingridlunden) April 29, 2019
In its quarterly earnings reports, Google does not disclose revenues from its hardware products, but the segment is growing despite dull phone sales, reaching nearly $ 5.5 billion in revenue this quarter. This could be due to increased sales of Chromecast devices, laptops, Google Home speakers, and Nest products, among other physical devices that Google is now integrating.
Pixel 3, which had a lower introductory price than Apple's and Samsung's flagship brands and was equipped with a first-rate camera, started at $ 799 and offered in variants that drove its price at $ 999. Now, less than nine months after launching the device, you can get a brand new Pixel 3 or Pixel 3 XL at $ 200 off the Google online store. And in what is anything but a coincidence, the contract ends just before Google I / O begins.
[ad_2]
Source link