Google has a simple but fine, the reason its expected boost to the midrange smartphone market: there is too much competition in the high-end one.
The following month, on the first day of its developers I / O conference, Google, is expected to show off its new, cheaper Pixel 3a and 3a XL. A call came with reporters today, Ruth Porat, chief financial officer of the parent company Google alphabet, said industrywide pressure on high-end mobile phones has led to fewer sales pixel last quarter compared with the same time a year ago. Porat specially brought "some of the recent pressure on the premium smartphone market."
Maybe make $ 1000 + phones is not such a great idea after all?
– Janko Roettgers (@ jank0) April 29, 2019
Although not Porat said that this pressure is, we can assume that it is referring to increased competition from Apple and the Samsung, as well as high prices for managing down consumer demand and the leading smartphone owners to hang on to their devices over the annual update cycles to which the mobile industry has tied itself.
In a separate part of the call, Google CEO Sundar pingchang county has been pressed, it is worth investors worried that the hardware company's efforts do little to affect his total income, which is still largely dependent on its advertising business slowdown. One analyst asked openly to challenge whether the Pixel Line representative failed Microsoft smartphone business.
Pingchang county was also killed in the Google hardware, do not pose significant revenues against advertising – people like advertising slow. One analyst even asked if we had another Microsoft in the hands of (!). (Pingchang county was defensive, he said the Google aims in the long term, but the EJC.) Https://t.co/4qTGvfOqHM
– Ingrid (@ingridlunden) April 29, 2019
Google does not explode profits for its hardware products related to their quarterly earnings reports, but the segment is growing, despite the lackluster sales of handsets, reaching nearly $ 5.5 billion in revenue last quarter. This may be due to an increase in sales of Chromecast devices, laptops, Google main speaker jack and products, including a variety of other physical devices Google is now spoiled.
Pixel 3, which was launched with a price lower than Apple's flagship, and the Samsung and was equipped with a camera the best in its class, started at $ 799 and come in versions that have pushed its price to $ 999. Now, less than nine months after starting up the device, you can get a brand new Pixel 3 Pixel 3 or XL for $ 200 from Google's online store. And that is nothing but coincidence, the deal ends immediately before the Google I / O.