Google admits high-end Pixel phones are facing trouble selling. (Image Evan Blass/Twitter)Google is expected to launch its budget variant of the Pixel 3 series smartphones on the first day of the Google I/O developer conference on May 7. A report by Variety hints that Google’s decision to move to the budget segment might be because of the stiff competition in the premium segment.
Google grew its non-advertising revenue to $5.5 billion for the first quarter of 2019, but it took hit in hardware sales, particularly in Pixel phones. Alphabet and Google chief financial officer Ruth Porat attributed this to industry-wide promotional activities in response to pressure on high-end phone sales, reported Variety.
Janko Roettgers of Variety quoted Porat on Twitter, “The company sold fewer Pixel phones due to industry-wide pressure on high-end phones.”
Porat did not specify the kind of pressure on the sales of high-end Pixel phone, but it would not be totally wrong to assume the increased competition in the premium segment from Apple, Samsung and Huawei forced the sales of Pixels to go down.
Google CEO Ruth Porat says the company sold fewer Pixel phones due to industry-wide pressure on high-end phones.
— Janko Roettgers (@jank0) April 29, 2019
Also, the increasing cost of premium phones might be a factor for lower consumer demand. While the smartphone manufacturers have tethered themselves to the annual update cycle, not everyone can let go of an above $500 phone after using it for only a year.
With the launch of a budget version of the Pixel 3 and Pixel 3XL — namely Pixel 3a and Pixel 3a XL — Google might be looking to target the broader customer base of the mid-range smartphones.
Also read | Google Pixel 3a purple colour option leaked, might launch on May 7 at I/O 2019
As per leaks, Google Pixel 3a and Pixel 3a XL are expected to feature LCD displays, Snapdragon 670 processor and 4GB of RAM. The phones are said to sport the same 12.2MP camera sensor on the back as seen on the Pixel 3 series phones. The phones are expected to run the company’s latest Android 9 Pie operating system and sport a 2,915mAh battery.
