Google ‘to make nearly US$4 billion on Pixel sales in 2017’

The launch of the new Google Pixel smartphone has been expected to generate US$3.8 billion (AU$5.15 billion) in the next year, according to industry analysts.

A forecast from Morgan Stanley has predicted that the Pixel brand, which made its debut in October 2016, will shift between five and six million units in 2017, in addition to the three billion Pixel phone sales estimated for the final quarter of 2016.

The anticipated $3.8 billion 2017 haul for the Pixel will come on top of the $2 billion the brand is expected to generate from its 2016 sales, and will provide a springboard from which Google can further develop the profile of its newest smartphone range.

As a brand new offering, the Pixel is not yet expected to match the sales of rival Apple's flagship iPhone, of which it sold 212 million units in the 2016 financial year, generating $137 billion in revenue.

Indeed, Morgan Stanley observed that the Pixel has a higher cost of materials, meaning it will only be half as profitable for Google as the iPhone is for Apple. However, a number of features unique to Pixel will help to narrow the gap.

Currently, people spend three times more money on iOS shopping apps than they do on their Android equivalents, but the Pixel's user-friendly design features such as the Google Assistant tool, its deeper app integration and improved Android Pay functionality are likely to persuade more Pixel users to spend money using their phones than they have with previous Android handsets.

Other key features of the new phone include a high-end 12.3 MP camera that is optimised to capture sharp images in any lighting conditions, plus rapid battery charging and unlimited storage for photos and videos.

Written by Mazuma

Mazuma Mobile is Australia's most trusted mobile phone recycling service.

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