The Google Pixel phone was definitely the most anticipated Android smartphone before its launch and now it is one of the most sought after devices in the market today. However, despite great reviews, the smartphone is not a money-earner for the search giant though in future Google's Pixel phones may define the future of Android phones.
Experts have estimated that Google can generate $1.8 billion revenue by selling 2.5 million Google Pixel smartphones in 2017. This has also been confirmed by Nomura's Alphabet analyst Anthony DiClemente. Morgan Stanley's Brian Nowak is more optimistic as he has estimated $3.8 billion revenue by selling 5.5 million units in 2017.
The Google Pixel phone has all the specs and features to compete against other top Android devices and Apple's iPhone. With a $700 price tag and incredible specs, the Google Pixel has created a strong demand and generated tremendous initial sales. However, a report by Forbes has stated that the Pixel's activations are coming off of a low base. Hence, a percentage increase may not mean high sales.
Nomura has estimated an operating profit of $100-$200 million in 2017 from $1.8 billion Google Pixel phone sales. This is not a great number considering the $27+ billion total sales for the company. Thus, for now, Pixel phones may not add much to Alphabet. However, as far as user reviews are concerned, the Pixel phones are at the top.
Those who are extra-dependent on Google apps are finding the Google Pixel phones hard to overlook. The phones provide a platform where all these apps have been integrated seamlessly. Their other features such as fingerprint scanner, decent camera, real time traffic alerts, free photo storage, upgraded GPS and noteworthy overall device performance have to be praised.
The Google Pixel phone is just a small portion of the overall Android pie. On one side, the smartphone is everything Google and provides the best Android experience possible and on the other it has left Android open to manufacturers.
