Google says Pixel gross sales are down, blames ‘pressures’ in premium section

The Google Pixel 3 and Pixel 3XL.

The Google Pixel three collection earned a gong in our Better of Android 2018 Awards due to its computational images credentials. Sadly, it looks as if an important digicam and quick updates weren’t sufficient to spice up gross sales.

Google dad or mum firm Alphabet reported its Q1 2019 earnings outcomes this week (h/t: 9to5Google), and it famous decrease year-on-year gross sales for the Pixel collection.

“ outcomes mirror decrease year-on-year gross sales of Pixel, reflecting partly heavy promotional exercise industry-wide, given among the current pressures within the premium smartphone market,” mentioned Alphabet CFO Ruth Porat within the earnings name (skip to 7:51).

It’s unclear whether or not the corporate is blaming decreased demand within the premium smartphone bracket, elevated competitors on this area, or each. Nonetheless, it’s clear that the Pixel three telephones had been much less profitable than the Pixel 2 collection within the quarter after launch.

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The decrease gross sales seemingly weren’t helped by the Pixel three’s elevated worth in comparison with its predecessor. Google’s Pixel 2 and Pixel 2XL launched at a beginning worth of $649 and $849 respectively, whereas the Pixel three and Pixel 3XL begin at $799 and $899. These hoping for cheaper units (just like the Pixel 3a) may wish to keep watch over Might 7, as Porat additionally confirmed that the occasion will deal with .

“With respect to outcomes, whereas the primary quarter outcomes mirror pressures within the premium smartphone industry, we’re happy with the continued momentum for Assistant-enabled residence units, significantly the Dwelling Hub and Mini units and look ahead to our Might 7 announcement at I/O from the staff,” the CFO mentioned.

Apart from disappointing Pixel gross sales, Alphabet reported complete revenues of $36.three billion and working revenue of $6.6 billion for the quarter. This compares to Q1 2018’s outcomes of $31.1 billion in income and $7.6 billion in working revenue. Alphabet claims it will’ve reported Q1 2019 working revenue of $eight.three billion with out its European Fee high-quality for abusive promoting practices. Do you suppose cheaper telephones will enhance Google Pixel gross sales? Give us your ideas within the feedback.

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