Down with the ugly: Google's Pixel 3 is not selling well

[Shawn Knight]

The big picture: Is Google taking the Pixel as seriously as it should? Perhaps not, according to one investor, who likened Google's hardware approach to that of Microsoft from a decade ago. There's still time to make some corrections and it could start next week at Google I/O.

Google parent company Alphabet in its recent earnings call took a moment to address Pixel hardware sales. CFO Ruth Porat didn’t go too deep on the matter but what she said was enough to get people’s attention and warrant a follow-up from one investor on the call.

Here’s the full quote courtesy of Ars Technica:

Hardware results reflect lower year-on-year sales of Pixel, reflecting in part heavy promotional activity industry-wide given some of the recent pressures in the premium smartphone market.

Without giving away numbers, Porat revealed that the Pixel 3 isn’t selling as well as its predecessor. She also concedes that there is some serious competition in the premium smartphone market. Again, we don’t know how “bad” it is for the Pixel 3 but as Ars notes, it was “bad enough” to be mentioned in the earnings call.

In addition to questionable changes like the move to an all-glass back and sticking with just 4GB of RAM, Google’s distribution network for the Pixel pales in comparison to the competition. As Ars highlights, the Pixel 3 is available for sale in just a dozen countries and has zero retail presence. Apple’s iPhone, meanwhile, can be found in some 70 countries around the globe, in more than 500 Apple retail stores and is offered at virtually every carrier store in the US. Samsung is doing even better with the Galaxy S10, offering the flagship in around 130 countries worldwide.

Later in the Q&A portion of the call, Bank of America’s Justin Post said the following:

On the hardware business, I think there's some concerns that it's just not getting off to a really strong trajectory. [There are] some comparisons to Microsoft 10 years ago. Really, just help us understand how that hardware business is important to Google and how you're thinking about it long term.

Google CEO Sundar Pichai handled the inquiry about as gracefully as possible, highlighting the company’s success with its Google Home smart speaker before transitioning into talk about the future of the mobile industry including foldables and 5G.

What could help Pixel sales, however, is a cheaper variant which is expected to be unveiled at Google I/O next week. An entry or mid-range Pixel would allow Google to target a different demographic than the big guys and their high-end flagships.

Lead image courtesy dennizn via Shutterstock

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https://www.techspot.com/news/79892-google-pixel-3-isnt-selling-well-predecessor.html

 

[yRaz]

Might be because the magical space rectangle hasn't changed much for YEARS. Maybe people will start buying new phones if they implement security features that don't track you and record all your data. Contrary to popular belief, Apple phones are priced the way they are because apple doesn't subsidize the phone by collecting and selling user data. I'm sure if they start making phones focused on privacy and security people will start buying them again until the market gets saturated....again.....

 

[amstech]

I am seeing more and more folks purchase a smartphone a generation or few generations older.
70-95% of the performance and features, 1/5 to 2/3's the price.
Again, not knocking the newer stuff, its very nice, and yeah blah blah its overpriced, but for everyday use, in all honesty, my S4, S5, S6 and S7 have been very similar, besides a few features, structural updates and demanding apps.

 

[Gypsygib]

I was very excited to get Pixel 3 coming from an original Pixel (which I absolutely loved) but when I held it in store it didn't feel or look nearly as premium as other phones. The hardware (and the gargantuan notch) really was its downfall for me, felt mid-ware with a premium-ware price. Went with an s9 Plus instead.

S9s screen and the quality build felt like it was worth the money. Thought I'd miss the raw Android UI and first updates but Samsung actually has some great features that I wouldn't want to be without now like the side app drawer, still has bloat but it's not nearly as bad compared to my old Note 4. The phone is very snappy and all of my most used apps get updated at the same time via the Google Play store, so for day to day use the lack of immediate UI updates doesn't really matter as I'm just on Chrome/Youtube/Google Maps, etc and all my fav apps look and feel better on the much nicer screen/hardware design.

 

[funglebuddy]

I would like google to partner with more carriers like Tmobile\sprint etc that would increase their marketshare.

 

[yeeeeman]

They need to launch new models in the same period as their competitors. For example, Samsung launched the Galaxy s10e in march with SD855. Google will launch their new pixel in october. By then, sd855 will become the norm, s10e will cost 500$, whereas google will ask a shitload of money for it. They also need to improve the build quality, put a bezeless screen and many more things if they want to compete.

 

[Greg S]

Personally I think Google's earnings also particularly bad on the Pixel 3 because for every one phone sold, they are shipping an average of probably 1.5 phones. Some people have gone through 3 or 4 before they get one that is sufficient quality. My first Pixel 3 had a number of unexplained problems that Google has completely ignored and just keeps pretending do not exist.

 

[Mr Majestyk]

They need to launch new models in the same period as their competitors. For example, Samsung launched the Galaxy s10e in march with SD855. Google will launch their new pixel in october. By then, sd855 will become the norm, s10e will cost 500$, whereas google will ask a shitload of money for it. They also need to improve the build quality, put a bezeless screen and many more things if they want to compete.

They need to stop charging full price for second rate hardware. They used to be cheap and you could forgive the cr@p build, now they are asking premium prices for similar cr@p build quality. Would only pay $300 for a Pixel 3.

 

[Mr Majestyk]

I am seeing more and more folks purchase a smartphone a generation or few generations older.
70-95% of the performance and features, 1/5 to 2/3's the price.
Again, not knocking the newer stuff, its very nice, and yeah blah blah its overpriced, but for everyday use, in all honesty, my S4, S5, S6 and S7 have been very similar, besides a few features, structural updates and demanding apps.

I'm in that boat, I have S7 Edge and won't be updating it to any of these overpriced flagships that are now double what I paid only 3 years ago. Samesung won't get another cent of my money. I don't like the S10 but have no idea what I'll eventually upgrade to.

 

[p51d007]

Hey Google/Alphabet...want to really see Pixel sales "take off"?
1. REMOVABLE back cover with REPLACEABLE battery.
2. If no replaceable battery, drop the stupid back cover. People put them in a case anyway.
3. Drop the price to just over cost. You make enough off the user data anyway.

 

[max0x7ba]

Because Pixel 3 design is horrible and the hardware specs are poor. The camera is overrated: photos are underexposed and the darks are too deep. That shouldn't be a surprise to anyone.

 

[McMurdeR]

They jumped on the high end high price band wagon with Apple and Samsung, but without the distribution and hardware expertise to pull it off.

It was an ill advised move considering they had built up a small but very enthusiastic following with the much loved and great value Nexus range. That could have been developed. They dropped Nexus exactly when the mass market was beginning to show interest in well made mid range and budget phones. Hwawai and Lenovo have filled that space fast.

The new Pixel 3a range may offer a chance for Google to regain a small foothold in the West, but it may be too late for the international markets.

The comparison with MS is wrong - MS made all their mistakes in software, which is Google's clear strength. Google's weakness is in hardware design, manufacturing and distribution.

 

[Linux7055]

Ugliest notch, 4gb of ram, no headphone jack or expanable storage. What was Google thinking lol?

 

[lensman888]

I am seeing more and more folks purchase a smartphone a generation or few generations older.
70-95% of the performance and features, 1/5 to 2/3's the price.
Again, not knocking the newer stuff, its very nice, and yeah blah blah its overpriced, but for everyday use, in all honesty, my S4, S5, S6 and S7 have been very similar, besides a few features, structural updates and demanding apps.

I'm in that boat, I have S7 Edge and won't be updating it to any of these overpriced flagships that are now double what I paid only 3 years ago. Samesung won't get another cent of my money. I don't like the S10 but have no idea what I'll eventually upgrade to.

Me, too. Still rocking the LG G4!

 

[Axiarus]

They need to launch new models in the same period as their competitors. For example, Samsung launched the Galaxy s10e in march with SD855. Google will launch their new pixel in october. By then, sd855 will become the norm, s10e will cost 500$, whereas google will ask a shitload of money for it. They also need to improve the build quality, put a bezeless screen and many more things if they want to compete.

They need to stop charging full price for second rate hardware. They used to be cheap and you could forgive the cr@p build, now they are asking premium prices for similar cr@p build quality. Would only pay $300 for a Pixel 3.

Huh...its an all aluminum body. The Pixel line feels really good in the hand.

 

[Mr Majestyk]

They need to launch new models in the same period as their competitors. For example, Samsung launched the Galaxy s10e in march with SD855. Google will launch their new pixel in october. By then, sd855 will become the norm, s10e will cost 500$, whereas google will ask a shitload of money for it. They also need to improve the build quality, put a bezeless screen and many more things if they want to compete.

They need to stop charging full price for second rate hardware. They used to be cheap and you could forgive the cr@p build, now they are asking premium prices for similar cr@p build quality. Would only pay $300 for a Pixel 3.

Huh...its an all aluminum body. The Pixel line feels really good in the hand.

Yeah that why so may people have to get 3-4 phones before they get a good one. So what if it's made from unobtanium, that's has nothing to do with the quality of assembly or componentry. So the chassis will last, big deal.

 

[PreachJohn]

I am seeing more and more folks purchase a smartphone a generation or few generations older.
70-95% of the performance and features, 1/5 to 2/3's the price.
Again, not knocking the newer stuff, its very nice, and yeah blah blah its overpriced, but for everyday use, in all honesty, my S4, S5, S6 and S7 have been very similar, besides a few features, structural updates and demanding apps.

I'm in that boat, I have S7 Edge and won't be updating it to any of these overpriced flagships that are now double what I paid only 3 years ago. Samesung won't get another cent of my money. I don't like the S10 but have no idea what I'll eventually upgrade to.

Me, too. Still rocking the LG G4!

Myself as well. Nexus 6 new from China tho' 2 yr old when bought still just fine as to specs and hardware. It replaced my 4 yr. 4 mo. daily driver Nexus 4 that also was excellent value; good specs there too.