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Google’s domination of search does not extend to smartphones. It has yet to break into the top 10 best sellers, lagging behind Apple, Samsung and Xiaomi. In the second quarter of the year it shipped 1.6 million Pixel devices, according to data from analysts at Omdia. This accounted for less than 1 percent of the global total.
However, despite poor marketing and a slow start, the popularity of Google’s Pixel phones is increasing. For instance, in Japan, it is gaining market share from Apple iPhones. Within Google’s parent company Alphabet, the “Other” category saw a rise in revenues, from 9 percent to 11 percent, in the last quarter.
The latest Pixel 8 is expected to continue this upward trend. However, its success cannot be attributed to its artificial intelligence-powered features like face-swapping photo edits. Price plays a more significant role. The Pixel is a premium phone priced $100 lower than the latest iPhone, and its software support extends its lifespan.
This was not what Google had envisioned when it launched its first Pixel phone in 2016. The consumer-focused phones replaced the Nexus devices that showcased the popular Android operating system. The Pixel’s AI capabilities were meant to give it a competitive edge.
CEO Sundar Pichai had announced a transition from a mobile-first to an AI-first approach. The Pixel was intended to collect user data and offer a completely personalized virtual assistant.
If this sounds familiar, it’s because the promise of AI proponents is yet to be realized. They often neglect to mention the additional costs associated with running AI features on smartphones.
Pixel sales still account for a small fraction of Google’s total revenues. Even if a million more Pixels are sold, it wouldn’t compensate for any loss caused by sanctions impacting the company’s advertising business. Such a scenario could arise if the US Department of Justice succeeds in its antitrust case against Google’s search business.
Nevertheless, the combination of affordable prices compared to iPhones and budget-conscious consumers could finally propel the Pixel into the top 10 smartphone rankings.
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