Play in the same league of price, but Apple takes almost twice as much for iPhone Google for its Pixel
November 28, 2016
Google introduced the new Pixel and Pixel XL early last month of October, and although currently only have come to a few countries, have had a huge impact in the scene Android, especially for their prices; 759 euros for the Google Pixel, and 869 euros for the Pixel XL. We left behind the era in which the Nexus were the kings of price/quality. the Google has created two smartphones high level, and this is even more clear in the prices.
despite the high prices, analysts at Morgan Stanley believe that Google is going to sell three million of the Google Pixel before the end of the year, which would obtain the whopping 2,000 million dollars in revenue. However, according to the data of this financial company, the profit margin is still much lower than that of one of its main competitors: the iPhone 7 of Apple.
The Pixel in figures
As we said, Morgan Stanley has made their estimates and ensure that Google will get to place three million Pixel before the end of 2016, a high figure especially if we take into account that the terminals are only sold in a handful of countries. is the company’s revenues in this period amounted to 2,000 million dollars, and is expected to double in 2017.
For the next year, Morgan Stanley estimates that sales of the Google Pixel would be around the five or even six million units, resulting in an income of 4,000 million dollars.
however, although the figures are astronomical, pale if we compare them with some super sales of the competition as the Samsung Galaxy S7 edge, according to Strategy Analytics had sold 13.3 million units in the first half of the year.
If we look at Apple, according to data from Morgan Stanley, the company has successfully placed 212 million iPhone in the year, which are translated into income by value of 137,000 million dollars. In the case of the fourth quarter of 2016, release date of the duo iPhone 7, the figures would be around 45 million units sold and 28,000 millions of dollars in revenue.
all in all, we must not lose sight of that Pixel are newly born and have yet to be consolidated among the public. Their power, the quality of your screen, or, above all, that of your camera, make the Pixel have ballot to become a reference equipment within the segment of Android, but what will be profitable for Google?
what is the profit margin?
Morgan Stanley estimates that the profit margin of the Google Pixel is among the 22 and the 25% depending on the model of the terminal (or a Pixel, that Pixel XL in 32 -, or 128 GB), as shown in the box under these lines.
on the contrary, the mark of the apple gets around a 41% of profit for each iPhone 7 sold, that is to say (although it is little as compared to 57.7% that drew in 2009). This difference makes the Pixel teams almost the half of profitable than those of the mark of the apple, mainly due to the cost of the materials of the smartphones of Google is higher.
But for Morgan Stanley, Google has ways to generate profits of the Pixel beyond the price. Currently, iOS users spend around triple in applications that users of Android, and here is where the company has the opportunity to elevate the figures.
Thanks to its technical level and the exclusive functions of the Pixel as are Google Assistant, the platform of virtual reality to Daydream, and, above all, its greater integration with Android Pay, could stimulate spending on apps and other digital content. Do you think that the users of the Pixel will spend more?
The news Play in the same league of price, but Apple takes almost twice as much for iPhone Google for its Pixel was originally published in Xataka Android by Amparo Babiloni .