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The Google search giant, who is the daughter of the Alphabet holding, is known for its software. However, Mark Mahani, an analyst at RBC Capital Markets, said the company was also becoming a hardware development professional. This year alone, its "iron" will bring $ 8.8 billion to Google, which represents 6% of the total revenue of the company for 2018.
The profits from iron for Google increase by 65% over a year. One of the leaders is the Pixel smartphone, but next year, Google Home's "Smart" column can be the main source of revenue. According to Mahan's forecast, the speaker and the screens will sell more pixels in 2019 for $ 2 billion, but products bearing the Pixel logo will remain the main driver of the hardware unit until 2021.
According to Mahan, Google's "Iron" division, which makes Pixel branded devices (phones, tablets, laptops), Nest ("smart" home appliances) and Home ("smart" speakers and displays) will report typically $ 3 billion in revenue. The average margin in this case will be 34%. Although the current figure is 55% higher than in 2017, the analyst predicts that growth will fall to 16%.
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