Alphabet’s Q2 earnings report suggests that the company’s Pixel strategy is working out.
“With the launch of Pixel 3a in May, overall Pixel unit sales in Q2 grew more than two times year-over-year,” CEO Sudar Pichai said on the earnings call, where the company went into greater detail on its $38.9 billion of revenue and $9.9 billion profit.
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That’s quite an increase on 2018, but that’s not wholly surprising given the company had to absorb a $5 billion antitrust settlement this time last year.
While the Pixel stats sound good, we still don’t exactly know how good, because the company has never put a figure on how well its handsets sell, bundling everything in the “Other Revenues” section of its report. That segment rose nearly 40% year-on-year to $6.2 billion, but it includes cloud computing and smart home as well as the Pixel handsets, so it’s hard to clearly state which part is doing most of the heavy lifting. That said, Pichai did say that Google Cloud is set to earn $8 billion annually, which would put a third of the “Other Revenues” from the cloud.
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But this success – and indeed the nearly $1 billion loss on its “Other Bets” category – is dwarfed by Google’s continued main moneymaker: advertising. The ad part of the company’s bottom line was up nearly 20% to $32.6 billion, reminding everyone that while it’s encouraging that the hardware business is seemingly beginning to flourish, there’s no real doubt what the company’s bread and butter will remain for the foreseeable future.
Will the Pixel ever be as big as Apple’s iPhone, or Samsung’s Galaxy S range? Let us know what you think on Twitter: @TrustedReviews.