Google's latest phones, the Pixel and Pixel XL have received the thumbs from the Android community and reviewers alike. Yes, the Pixels sell very well, but how well you might be wondering?
According to research firm Morgan Stanley, Google is on track to sell about 3 million units by the end of the year, which translates roughly in about $2.69 CAD billion of revenue. As for next year, Google is expected to ship around 5-6 million phones or $5.11 CAD billion in cash.
It's a good start for the young Pixel family, which has replaced the more affordable Nexus dynasty. But to be fair, the Pixels have nothing on Samsung and Apple. Still in its infancy, Pixels can't compete with the 71 million smartphones sold by Samsung in Q3 or the 43 million units sold by Apple during the same period.
The Pixels are quite limited in availability at the moment, but next year the Pixel 2 might find itself on the shelves of multiple carriers. Also Google might want to re-think the pricing strategy if it wants to make even more money in 2017.
Morgan Stanley also notes that due to the high price of the materials used to make the Pixel, Google is cashing in about half of the profits. More profit is being generated by Android app and service purchases.
Typically Android users prefer free apps, but due to the deeper integration of Android Pay, Daydream View VR and Google Assistant, users are starting to pay more attention to paid apps as well.
[Business Insider]
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