Published in Mobiles

Pixel predicted to sell six million

by on29 November 2016

Will make Google a cool billion

Beancounters at Morgan Stanley have added up some numbers and divided by their shoe size and worked out that 5-6 million of Pixel and Pixel XL mobiles will be sold this year.

This will make Google  about $3.8 billion in revenue. The numbers men also predict that the Pixel will sell three million units in the final three months of 2016, making a cool $2 billion of revenue.  Of course the Tame Apple Press is doing its best to say that these figures are nothing like what their favourite toy maker makes with its iPhone.  

Morgan Stanley admits the Pixel will be half as profitable for Google as the iPhone is to Apple, because it has better and more expensive materials.It is a terrible thing when a tech company suffers because it puts in better quality parts. The Pixel phone will generate a 22 per cent -25 per cent gross profit margin,varying according to the model. The iPhone 7's gross margin is at around 41 per cent.

Google makes its mone from what Morgan Stanley's analysts refer to as "Android user monetisation."

People spend three times more money on iOS shopping apps than they do Android ones, but some of the Pixel's features will help close this gap, Morgan Stanley said.

Features unique to the Pixel, such as the Google Assistant, the Pixel camera, and Daydream (Google's virtual reality headset, which works with the Pixel), plus the smartphone's deeper app integration, increased prominence of Android Pay, and improved computing power (compared to other Android devices), will ultimately lead to users spending more money on Android, according to the research note.

Morgan Stanley's analysts predict that these features could see the Pixel driving higher mobile search monetization for Google as advertisers will spend more to reach the consumers who spend the most on their mobiles.

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