Apple s (AAPL) iPhone business may be in decline, but Pixel smartphone revenue for rival Google will double by 2021, an analyst says
Meanwhile, Google, the search giant and unit of Alphabet (GOOGL), also is gaining ground against Amazon.com (AMZN) in the home smart speaker market, according to RBC Capital Markets analyst Mark Mahaney.
Google's share of the smartphone market will edge up to 2.4% in 2021 from 1.5% this year. The Apple iPhone continues to dominate the market, Mahaney said in a report on Google's hardware business.
Google's Pixel phone revenue will jump to $ 6.92 billion in 2021, up from $ 3.42 billion in 2018, forecasts Mahaney .
A respected Apple analyst, meanwhile, last week said that iPhone unit sales in 2019 will fall 5% -10% from this year.
Google Home Vs. Amazon Echo
In the smart speaker market, expecting Amazon Echo devices to stay the market leader. Similarly, projects that Google's home speaker revenue will jump to $ 8.12 billion in 2021, up from $ 3.4 billion in 2018.
"All in, we estimate that Google's hardware suite of products (Pixel, Home, Nest, Chromecast) will In 2018, generate approximately $ 8.8 billion in revenue and $ 3 billion in gross profits and that will amount to 6% of the company gross revenue and 4% of gross profits, "said Mahaney in a report.
By 2021, Mahaney estimates that Google's hardware business will generate $ 19.6 billion in revenue and $ 6.1 billion in gross profits, accounting for 8% or overall gross revenue and 5% of gross profits. "
Amid the market downturn, Alphabet stock slipped below the 1,000 threshold for the first time since April, falling 3.2% to close at 991.25 on the stock market today. Apple stock dropped 3.9% to 150.73.
YOU MAY ALSO LIKE:
IBD's ETF Market Strategy
Stocks To Buy And Watch: Big And Small Caps, Top IPOs Growth Stocks
Stock Marketplace Stock Marketplace Follow-Through Day
Track Stock Market Data On The S&P 500, Nasdaq, Dow Jones And SPDR ETFs
Get Notifications For Live IBD YouTube Subscribing Videos