Google to generate $3.8 billion in 2017 from the Pixel and Daydream

Google to generate $3.8 billion in 2017 from the Pixel and Daydream

Google's Pixel phone is estimated to generated $3.8 billion in revenue for the company in 2017.

This is according to financial service corporation Morgan Stanley, which expects that the Google will sell between 5 and 6 million units through the year.

It also estimates that the phone will sell 3 million units in Q4 of 2016. This is expected to generate $2 billion in revenues for Google.

Side benefits

Morgan Stanley also estimates that the Pixel is only about half as profitable as the iPhone.

It suggests profit margins are 22% for the cheapest model due to more expensive manufacturing costs, compared to the iPhone's estimated margin of 41%.

Instead, the revenue will be generated by the Pixel's features rather than simply by the phone itself. Google's Daydream VR, as well as deeper app integration, more prominent use of Android Pay, and improved computing power will lead to users spending more on the device.

Specific sales data on the Pixel has yet to be made available. It has been estimated that 7.5% of all phone activations at Verizon were a Pixel, following a $12 million TV ad campaign by the company to push the phone.

[Source: Business Insider]

Deputy Editor

Ric has written for for as long as he can remember, and is now Deputy Editor. He likes trains.


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