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Morgan Stanley: Pixel Phone Will Generate Google Almost $4 Billion In Revenue Next Year (9to5google.com)

An anonymous reader quotes a report from 9to5Google: With initial Pixel pre-orders exceeding expectations and promising activation numbers from Verizon, Google is on track to sell three million phones with revenues of $2 billion in 2016. The Morgan Stanley estimate comes as the Pixel reportedly captured 10% of the premium smartphone market in India. Unsurprisingly, the 128GB Pixel XL has the largest gross profit margin at 25%, while the cheapest 32GB Pixel is at 22%. Morgan Stanley also estimates that, compared to the iPhone, the Pixel will be half as profitable. Morgan Stanley expects Google to sell 5-6 million Pixel and Pixel XL devices in 2017 to the tune of $3.8 billion in revenue. Google is also expected to make money from increased usage of services like Android Pay and mobile search. Google's big gains were possibly due in part to Samsung's Note 7 debacle, with the company's marketshare falling to 23%. Apple captured the number one position at 66%. Additionally, Google benefitted from running a number of promotions, including cashback and exchange programs. The company also heavily advertised in newspapers, with billboards, and for the first time displays in large retail stores.

11 of 66 comments (clear)

  1. Re:iPhone by 110010001000 · · Score: 2

    Motorola StarTAC.

  2. Re:iPhone by sexconker · · Score: 2

    Nothing viable in the modern market or in the near future, as far as I can see. It really fucking sucks. I went from being an enthusiastic early adopter of smartphones (well before the iPhone) to being a jaded, hateful pile of salt.

  3. Re:iPhone by 110010001000 · · Score: 4, Insightful

    I just can't believe that people are paying these prices for phones. The Pixel XL is $870! Probably the iPhone 7 is similar. Seriously? For a phone?

  4. Verizon Only... by BulletMagnet · · Score: 2

    Wonder what that final number would have been had they released it across all carriers and not just Verizon....

    1. Re:Verizon Only... by Anonymous Coward · · Score: 2, Interesting

      It's not Verizon only. Their advertising is very misleading. I do wonder, though, if they would have sold more if fewer people were mislead about that.

  5. Hmmm... by Actually,+I+do+RTFA · · Score: 3, Interesting

    Seems a bit early to speculate. Tons of preorders may be good, or may cause the whole thing to disappear if it fails to live up to expectations.

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  6. Re:real open source by EzInKy · · Score: 2

    Mine, after nearly 7 years of daily use, sadly is on its last legs. And to be honest it never was 100% true "open source". Nothing available now that I know of comes even close though. Someone I know bragged about having 64gb of storage, I've had that like for near 7 years now. And if I needed more all I have to do was swap out the memory card. And I really don't get this slim fetish.

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  7. Re:iPhone by Gussington · · Score: 5, Insightful

    I just can't believe that people are paying these prices for phones. The Pixel XL is $870! Probably the iPhone 7 is similar. Seriously? For a phone?

    $870 over two years is just over $1/day. Most people spend more than that on a coffee or newspaper. Which one offers more value?

  8. Re:iPhone by 110010001000 · · Score: 2

    A newspaper. Maybe then you will stop staring at your fucking phone and read a little about life.

  9. Re:iPhone by rahvin112 · · Score: 2

    When you buy that similar phone on contract from your carrier for $200 you are paying that plus about 20%. Monthly cellular costs are vastly inflated by the monthly charge this adds to the bill. As an example, a typical no frills family plan for two people is going to cost you around $120 with all the taxes. I'm paying roughly $70 with GoogleFi because they don't add in the phone costs automatically and when you do request the payment plan and they do include the cost it's properly itemized and only you pay it not every subscriber. And though I paid $870x2 upfront my monthly bill is $50 cheaper. In two years I'll have paid significantly less then if I'd gotten the same thing using the standard pay $2-300 per phone upfront and pay an extra $50 a month for two years.

    Though I would have preferred a price that was as cheap as the Nexus phones the Pixel in my opinion is worth the cost even given the negatives (no SD card). And Google Fi make it even better.

  10. Re:real open source by TheGratefulNet · · Score: 2

    fuck nokia and also ericcson. both scandinavian companies and both, in the US, drug-test their employees.

    both those companies are on my do-not-buy list. I disagree with what they consider important and so I will not give my money to them for any reason, if I can help it.

    some people don't care, but when I find companies that follow ultra conservative ideals and force them on their employees, that really pisses me off and I have no desire to buy their products.

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