Report: Google on pace to sell 3 million Pixels by the end of the year

A Morgan Stanley estimate says Google should sell another 5 to 6 million next year, though Samsung remains the smartphone sales king.

Google’s Pixel is no doubt a hit, with some models still out of stock a couple of months after launch. An analysis by Morgan Stanley gives us an even more detailed picture about just how well the phone is doing and what it may mean for Google’s place in the smartphone market.

According to the report, Google’s on track to sell three million phones with revenues around $2 billion. The biggest moneymaker is of course the 128GB Pixel XL, with a gross profit margin of 25 percent. The cheapest phone, the 32GB Pixel, comes in at 22 percent.

It’s good news for Google, though it still pales in comparison to Apple’s $28 billion in revenue it made from selling 45.5 million iPhones in the last quarter of this year alone. Also, Samsung’s Galaxy S7 Edge has spent most of the year as the top-selling Android phone. No doubt we’ll soon see a Galaxy S8 in a few months as Samsung tries to rebound from the Note7 disaster.

Morgan Stanley also notes that Google’s profit estimate of $3.8 billion for the Pixel in 2017 is also derived from continuing to make money off the phone itself. The Google Play Store and deep integration of Google services will lead to additional opportunities to rake in the cash.

As for getting your hands on one now, some Pixel models are still hard to come by. The Pixel XL is currently sold on on the Google Store, while some Verizon customers are continuing to have shipping delays with their XL preorders.

Why this matters: Google’s initiative to compete directly in the smartphone business is definitely paying off. The Apple-like integration of hardware and software is the right approach for a company that is betting heavily on its services being a critical component of your digital life. Further success for the Pixel, however, hinge upon getting the phone into other carrier stores. Currently Verizon is the only carrier to directly sell the Pixel.

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags GoogleGoogle Pixel

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Derek Walter

Unknown Publication
Show Comments

Cool Tech

Crucial Ballistix Elite 32GB Kit (4 x 8GB) DDR4-3000 UDIMM

Learn more >

Gadgets & Things

Lexar® Professional 1000x microSDHC™/microSDXC™ UHS-II cards

Learn more >

Family Friendly

Lexar® JumpDrive® S57 USB 3.0 flash drive 

Learn more >

Stocking Stuffer

Plox Star Wars Death Star Levitating Bluetooth Speaker

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?