Google’s Pixel To Bring In Almost $4 Billion Revenue Over 2017
A report out of financial services firm Morgan Stanley has estimated that the Google Pixel will add $3.8 billion to the search engine’s revenue by the end of 2017.
The firm estimates that three million Pixels sold in the final quarter of 2016 will account for $2 billion of that, whilst the other 5-6 billion will trickle in over the following 12 months.
Although this falls short of the $28.2 billion revenue that Apple’s iPhones have generated in the final quarter of 2016 as a result of higher margins, Morgan Stanley notes that where the Pixel and Pixel XL fall short in initial profitability it makes up in post-sale monetization.
Data currently suggests that iOS users spend three times as much as those using Android. However, the firm says that the Pixels feature-set, including Google Assistant, Android Pay and support for Daydream, will ultimately lead to users spending more money on Google’s mobile OS.
The Pixel, launched in October alongside an enormous advertising effort, outsold the Nexus 6 in its first week amid acclaim from critics and consumers.
Though undoubtedly the most successful handset Google has ever brought to market, it’s unknown if that rapid growth for Pixel can be sustained once Samsung and Apple regroup from a troubled quarter.