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Google Confirms It Can’t Sell Expensive Phones

It has been observed over and over with the Pixel series: Google can’t sell the flagship, at least not at that cost. The original Pixel suffered from severe stock shortages. The Pixel 2 didn’t, but it still did not do as well in stores as expected. A year later, Pixel 3 launched a flagship phone that Google and its partners frequently discount. When the Pixel 4 launches this fall, the handset will likely have a higher price tag that will keep it in line with the iPhone 11, Galaxy Note 10, and other 2019 flagships. No matter however exciting the Pixel 4 may be, Google just confirmed again to the world that it’s not successful at selling expensive smartphones as its main rivals.

On Thursday, Google posted earnings for the second quarter, revealing healthy numbers for the period, $38.9 billion in revenue and $9.9 in profit. The ad business created most of that money, at $32.6 billion for the period, up 20% compared to the same period last year.

Google doesn’t share Pixel sales numbers, but the “Other Revenues” segment of its earnings report registered nearly $6.2 billion in revenue, up significantly from the $4.42 billion a year earlier.

Sundar Pichai, Google CEO, said that the cheaper Pixel 3a phone released in May saw great sales during the period, implying the affordable handset might be responsible for the significant hike in sales for the segment.

“With the launch of Pixel 3a in May, overall Pixel unit sales in Q2 grew more than two times year over year,” said the executive, according to The Verge. However, the executive didn’t mention precise sales numbers for the Pixel series, or whether the nearly 40% increment in “Other Revenues” happened because of the Pixel 3a. What’s worth grabbing attention is that the Pixel 3a was accessible for sale for less than two months throughout the period. If sales were that spectacular, it may further boost Google’s phone sales within the returning quarter.

James J

James has been writing about tech since 2009 after spending 25 years in a computer research lab studying and improving the future of computers. He watches Netflix sci-fi with his pet, enjoying spicy snacks.
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