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Google facing stiff competition in flagship segment; Hints at new devices launch soon

30 April 2019 3

Google has finally accepted that it is facing a lot of competition in the flagship segment smartphone. In its earnings call with reporters earlier today, Google acknowledged that the company sold lesser devices as compared to the last quarter.

Ruth Porat, the chief financial officer of Google parent company Alphabet, stated some of the "recent pressures in the premium smartphone market.” While she didn’t specify what those pressures are, the current prices of flagship devices are forcing users to continue using the devices for a longer duration. Google is also facing stiff competition from Samsung and Apple.

Both, Ruth Porat and Sundar Pichai have mentioned “strong momentum” from Hardware like smart home speakers and assistant ecosystem. They also teased a hardware announcement at the upcoming Google IO conference starting on May 7. While analysts have maintained that Google’s hardware business may not be growing fast enough, Sundar Pichai reiterated that the company has a strong commitment on hardware sales and plans to reinforce distribution and branding efforts.

Google reported USD 5.5 billion in revenue last year and added that the hardware sales segment is growing, though did not give a breakup of the revenue. Analysts predict that the sales could’ve been boosted by the increased sales of hardware devices like Chromecast devices, laptops, Google Home speakers, Nest products and others.



Google facing stiff competition in flagship segment; Hints at new devices launch soon
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Companies like Samsung, Apple, Huawei, Xiaomi, etc. sell millions of devices in a single year. It's very likely that some brand would be selling "lesser number of device", which can be any brand.


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