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Home / Technology / Google Speakers and Pixel Phones Switch Hardware to a $ 20B Business – BGR

Google Speakers and Pixel Phones Switch Hardware to a $ 20B Business – BGR



Thanks to Google's enduring moneymaking machine, its parent company's alphabet is a titanic force for advertising. However, according to a new analysis, a separate powerful force is also rising below the surface. We are referring to the fact that Google continues to build a robust hardware business – one that grows to such an extent that RBC analyst Mark Mahaney believes it will rake in nearly $ 20 billion in sales over the next three years. [19659002] This growth is partly thanks to Google's success with products such as its Pixel phones and a range of smart speakers, as well as Nest cameras and thermostats and Chromecast streaming dongles, to name a few. Such devices, Mahaney wrote in a note to clients, have "won great success and are beginning to gain material commercial traits."

RBC estimates that by 201

8, Google's hardware business will generate $ 8.8 billion in $ 3 billion in revenue and profits. However, in 2021, a great jump will have taken place. That the revenue number is expected to rise to nearly $ 20 billion, with a $ 6.1 billion profit.

To be clear, all of this remains dwarfed by 85.8 percent of Alphanet's total advertising revenue. Nevertheless, growth is unmistakable and shows that Google is increasingly becoming a hardware force to be reckoned with, despite its spectacular flaws like Google Glass or the fact that it has never found a home-controlled product like the iPhone.

Its Google Home Speakers, powered by the company's helpful Google Assistant AI, have seen around 43 million installations in the US, RBC estimates. "Hardware," according to Mahaney, "remains a small but important part of Google given its potential as an important growth avenue and strategic hedge for the company."

CNBC breaks this analysis down a bit more: "While Mahaney sees revenue and profits grow, the real value of Google's hardware is that it provides a platform for it to develop and distribute its artificial intelligence chops and provide the more ways to serve ads Morgan Stanley analysts have actually recommended that Google should give their Home Mini devices away for free to defend their detailed advertising campaign. "

Image Source: Zach Epstein, BGR


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