Google Pixel 3A Was the Reason Behind High Profit
Google’s budget-conscious strategy to its Pixel smartphone line seems to be paying off. Google parent firm Alphabet posted second-quarter earnings for 2019 today, handily beating Wall Street expectations with revenue of 38.9 billion USD and a profit of 9.9 billion USD. The profit dwarfed that of the second quarter of 2018 when Google needed to dock its net revenue by a record 5 billion USD over last year’s antitrust settlement.
The Google ad machine still continues to chug along unfazed by any of the corporate’s numerous scandals surrounding botched YouTube moderation, alleged bias in search results, and looming regulatory risks. (Google’s ad business made 32.6 billion USD this past quarter, a jump of almost 20 %.) However, the true spotlight this quarter is on the “Other Revenues” segment. That segment includes the corporate’s hardware business, like Pixel phones and Google Home smart audio system, in addition to its cloud computing division. It was up almost 40 % from this time a yr ago, to $6.2 billion.
One of many causes: Google’s cheaper Pixel 3A phone, launched in May. “With the launch of Pixel 3A in Might, total Pixel unit sales in Q2 grew greater than two times year over yr,” Google CEO Sundar Pichai mentioned on an earnings call this evening. It’s value noting that Google has never damaged out concrete Pixel sales earlier than, so we don’t exactly know how many more models this improve involves.
Moreover, Google doesn’t separate out its Other Revenues section into different categories. So we cannot say for sure whether or not the 40 % jump is usually attributable to those extra Pixel sales, or how a lot it was helped along by the cloud computing enterprises. But it is fair to say that both are probably contributing significantly.