Earning money? Pixel will create $3.8 billion in revenue for Google next year

Beijing time on November 29 news, according to Morgan Stanley estimates, Google's new mobile phone Pixel will create $3.8 billion in revenue for the company next year, gross profit $ 900 million. According to the report, Google can sell 5-6 million mobile phones next year, and the retail price is between 649-869 US dollars.

Google New Phone Pixel

In the last three months of 2016, Morgan Stanley believes that Google can sell 3 million Pixel phones and generate $2 billion in revenue. In fiscal year 2016, Apple sold mobile phones at 212 million units and generated revenue of US$137 billion. In the last three months of fiscal 2016, Apple sold 45.5 million mobile phones and generated $28 billion in revenue. Samsung is still the world's largest smartphone manufacturer. Although there is still a distance compared to them, Google’s hardware business has exceeded Fitbit, GoPro, and their annual revenue has not reached 2 billion US dollars.

Morgan Stanley pointed out that Pixel's raw material costs are higher and its profit margin is estimated to be only half that of the iPhone. Pixel's gross profit margin is about 22-25%, and Phone 7's gross profit margin is maintained at about 41%. In 2009, the iPhone's gross margin was as high as 57.7%, which has now dropped significantly.

In spite of this, in addition to selling mobile phones, Google can also profit by other means. When you purchase a program on the iOS platform, the user's expenditure is 3 times that of the Android platform, but some Pixel functions help close the gap.

Pixel has some unique features, such as Google Assistant, Pixel camera, Daydream, Google also deep integration of smart phones and APP, improve the status of Android Pay, enhance the computing performance (compared to other Android phones), and ultimately Pixel users will be in Android More money is spent on the platform. Not only that, the above features can also earn more revenue for Google Mobile Search.

FactSet believes that in 2017 fiscal year, the revenue of Alphabet (Google's parent company) will reach 85.1 billion U.S. dollars, of which 75 billion U.S. dollars will come from the website business, and the hardware business will have a small share.

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