Google must work hard to drive sales of its impressive Pixel Smartphones
Google announced two premium smartphones on October 4th, Pixel and the larger screen Pixel XL. Different from previous Nexus phones co-developed with OEM partners, Pixel phones are entirely designed in-house by Google. We expect Google Pixel phones in the short term will have moderate sales volumes.
Beyond the short term, Google will need to address more challenges. Notably, Google must be prepared to spend significant amounts on marketing and channel incentives and be prepared to follow up the initial Pixel models with further strong smartphone designs.
Report highlights include:
- Google is yet to build up strong carrier and retail relationships
- IHS believes Google's planned 2016 Pixel production is around two million units
- Google’s display choice helps Daydream VR, but limits its ability to increase production
- Current Nexus smartphones shipments are modest. IHS expects initial Pixel shipment in 2016 to be a similar order of magnitude
- Rising hardware commoditization will help Google’s unified software and hardware strategy