Google this afternoon reported Q2 2019 earnings, with Wall Street responding positively during after-hours trading. Sundar Pichai highlighted the Pixel 3a and Pixel 3a XL launch in May, which helped result in a 2x YoY growth for Pixel unit sales.
With the launch of Pixel 3a in May, overall Pixel unit sales in Q2 grew more than 2x year-over-year. In addition to Verizon and the Google Store, we successfully expanded our distribution to T-Mobile, Sprint, US Cellular, Spectrum Mobile, and additional partners, which has greatly diversified our sales footprint in the US.
Google does not break out Made by Google sales in its quarterly earnings, with an “Other revenues” category bundling hardware, Play Store, and Google Cloud results together. In Q2 2019, that line item reported $6.18 billion, compared to $4.4 billion in the same quarter last year.
The 2x YoY growth touted comes following a doubling of the phone lineup with mid-tier devices joining the flagships. Retail availability of both the Pixel 3 and Pixel 3a also expanded to all the major U.S. carriers, save for AT&T.
Pichai’s last comments about Pixel came in October 2018 following a question by an analyst about why Google’s phone lineup wasn’t more successful. Cited reasons at the time included not enough product inventory, and the need for a better go-to-market strategy and retail availability.
The Google CEO ended today’s discussion with a tease to “stay tuned for even more on hardware this fall.” Alphabet CFO Ruth Porat also advised that new product launches were coming in Q4, which is in line with Made by Google’s usual October event.
And look forward to the fourth quarter launch of our newest devices, some of which we showed off at I/O.
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