Google sold twice as many smartphones in Q2 as in the same quarter a year ago, as the company’s decision to release a budget version of its Pixel handset paid off.
On parent Alphabet’s earnings call, Google CEO Sundar Pichai noted the launch of the Pixel 3a in May helped drive sales, as did the expansion of its distribution partnerships in the US to include most major operators.
The company previously had an exclusive distribution arrangement with Verizon for earlier models, but opted to sell the Pixel 3a through T-Mobile, Sprint, US Cellular and other partners as well. Pichai said the move “greatly diversified our sales footprint in the US”.
Pixel sales contributed to a 40 per cent increase in Google’s “other revenues” category (which encompasses Pixel, Nest, Play Store and cloud services revenues) to $6.2 billion, compared to $4.4 billion in Q2 2018.
Alphabet reported $38.9 billion in total revenue in Q2, an increase of 19 per cent year-on-year. Revenue from Google’s core advertising business made up the bulk of that sum, coming in at $32.6 billion, compared to $28.09 billion in Q2 2018.
Profit of $9.9 billion was up substantially from $3.2 billion in the year-ago quarter, when Google recorded a $5 billion charge related to a fine from European regulators.Subscribe to our daily newsletter Back