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Google's Pixel smartphone sales are down, company officials said Monday at the first-quarter results conference, noting that the technology giant was struggling to expand its hardware business.
Although Google is generally closely linked to such parameters, CFO Ruth Porat explained that Pixel was struggling to explain its slowdown in growth from one year to the next of the "other revenues," which include revenue channels, such as cloud and hardware, that are not part of its core business activities.
"The material results reflect a decline in pixel sales compared to last year, partly reflecting an intense promotional activity across the industry, due to some of the recent pressures in the premium smartphone market. "said Porat.
The growth of Google's "other income" slowed from 35% in 2018 to 25% in 2019. Alphabet, the technology giant's parent company, saw its shares fall more than 7% after normal business hours. on Monday.
Google CEO Sundar Pichai also commented on declining pixel sales.
"The phones are definitely used throughout the industry, I think we're going through a phase of headwinds year after year," said Pichai, without ever explaining what these "headwinds" were. "But I think that especially as the ecosystem pushes it forward, I continue to be excited about the speed of innovation."
The chief executive highlighted the rise of the ultra-fast 5G wireless standard and the rollout of the first folding phones – which he says "Android plays a big role in driving" – as developments on smartphones that passionate the most.
Recently, Samsung – the first major smartphone maker to launch a foldable smartphone – was forced to postpone the release date of its device after early readers discovered serious hardware defects.
Read more: Samsung's Extremely Ambitious $ 2,000 Folding Phone Is a Disaster for the Smartphone Giant – Here's What Happened
With regard to Google's future smartphones, rumors are circulating that a cheaper version of the Pixel, probably called Pixel "3a" – will be released in early May.
"We are still in the early stages, but our commitment is very strong," Pichai said of Google's hardware industry.
The future of hardware for Google
Despite Picahi's optimism, questions remain about the future of Google's hardware sector.
Business Insider recently announced that the company has reduced the size of its laptop and tablet computer services – an initiative that one source said would "shrink the portfolio" of products launched by the technology giant .
The company's smartphone group has not been included in the "Roadmap cuts" reported by Business Insider, although Monday's results report indicates that the search giant still has problems in this domain.
Despite the slowdown in Pixel sales, Pichai reinforced Google's initial reasoning on building its own internal hardware – to ensure that its "services are presented to users in the way they are meant to be," said Pichai.
Only time will tell if and when Google can really transform its efforts into hardware into a real and sustainable hardware business.
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