Google presented the new Pixel and Pixel XL at the beginning of last October and, although at the moment they have only reached a few countries, have had a huge impact on the Android scene, especially for their prices; 759 euros for Google Pixel and 869 euros for Pixel XL. Behind it was the time where the Nexus were the Kings of the quality/price. Google has created two smartphones of high level and this is more than clear prices.
Despite the prices high, analysts of Morgan Stanley believe that Google will sell three million Google Pixel before the end of the year, of which they would get a whopping 2,000 million dollars in revenue. However, according to this financial company, the profit margin is still much smaller than the one of its main competitors: 7 Apple iPhone.
The Pixel in figures
As we said, Morgan Stanley has made their forecasts and ensure that Google will get put three million Pixel before the end of 2016, a figure elevated above all if we take into account that the terminals are only available in a handful of countries. Revenues of the company in this period would amount to $ 2,000 million, and it is expected that they duplicate them in 2017.
For the next year, Morgan Stanley estimates that sales of the Google Pixel would in lathe to the five or even six million units, that would translate into revenue of 4,000 million dollars.
However, although they are figures astronomical, they pale when compared with some super competitive sales as the Samsung Galaxy S7 edge, which, according to Strategy Analytics, had sold 13.3 million units in the first half of the year.
If you look at Apple, according to Morgan Stanley, the company has managed to place 212 million iPhone so far of the year, that it translates into income 137.000 million dollars. In the case of the fourth quarter of 2016, date of release of the iPhone 7 duo, the figures would be around 45 million units sold and 28,000 billion in revenue.
However, there are no lose sight that the Pixel is a newborn proposal and have yet to become public. Its power, the quality of your screen or, above all, that of your camera, make the Pixel ballots to become reference equipment within the segment of Android, but will succeed be profitable for Google?
And what about the profit margin?
Morgan Stanley estimates that the profit margin of the Google Pixel is between 22 and 25% depending on the model Terminal (Pixel or Pixel XL 32 or 128 GB), as shown in the picture below.
On the contrary, the Apple brand gets around a 41% of benefits for each iPhone 7 sold, it is soon (although it is little compared with 57.7% that drew in 2009). This difference makes the pixel equipment half of profitable than of the Apple brand, mainly since Google smartphones materials cost is high.
But for Morgan Stanley, Google has after ways to generate profits the pixel beyond price. Today iOS users spend around three times in apps than Android users, and here is where the company has an opportunity to raise the figures.
Thanks to its technical level and the unique features of the Pixel as Google Assistant, virtual reality Daydream platform and, above all, greater integration with Android Pay, they could stimulate spending on apps and other digital content. Do you think that the users of the Pixel will spend more?