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Google confirms new hardware announcement at I/O 2019, admits having trouble selling high-end Pixels

Google confirms new hardware announcement at I/O 2019, admits having trouble selling high-end Pixels

Google’s parent company, Alphabet, recently hosted its earnings call for Q1 2019. While investors were not entirely pleased by the $36.33 Billion yearly revenue or the 17% YoY revenue increase, we were pleased when Alphabet dropped further confirmation for the announcement of new hardware at Google I/O 2019. The company also admitted that the Google Pixel lineup is facing pressure in the premium smartphone market.

"With respect to hardware results, while the first quarter results reflect pressures in the premium smartphone industry, we are pleased with the ongoing momentum for Assistant-enabled Home devices, particularly the Home Hub and Mini devices, and look forward to our May 7th announcement at I/O from the Hardware team."
                                                                    Ruth Porat, CFO, Google

Alphabet and Google’s CFO, Ruth Porat confirms the announcement of new devices, within the context of Assistant-enabled smart home devices. This could be a reference to the Nest Hub Max that was recently spotted online, but we also believe that the Pixel 3a and Pixel 3a XL will also be launched at Google I/O 2019 based on other evidence. Google also admits of pressure in the premium smartphone segment, which provides a plausible reason for the company to pursue a relatively lower priced device.

Further on in the earnings call, Google CEO Sundar Pichai expressed his optimism with the performance of Google’s hardware lineup as well as its “breadth and depth,” alluding that they shall continue on with the release of premium segment phones too.

"Next, I’ll give an update on our hardware and cloud efforts. First, hardware. I’m very proud that only in a few short years, we have built a strong foundation in hardware. For example, demand for our Google Home family of products remains strong, especially the Home Mini and Home Hub. The breadth and depth of our product lines across Pixel, Nest and Home is amazing, and you’ll see us continue to develop this incredible lineup. The team has also done a lot of effort to scale our operations, and will continue to optimize our distribution, branding and points of presence."
                                                            Sundar Pichai, CEO, Google 

The Pixel 3a and Pixel 3a XL have leaked in device renders previously, showing off a design that is similar in several aspects to what we have seen on previous Pixel devices. What will make or break these devices is how Google chooses to price both the phones. We’ll find out on May 7, 2019.

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