Yesterday Alphabet announced the economic results of the fourth quarter of 2022and for the occasion the head of the company Sundar Pichai commented that the devices Pixel (how to update them with OTA files) are having a period of great momentum.
Indeed, the manager went further, stating that the company It is going to improve hardware economy and concentrate more on the line Pixel. More Pixels, therefore, a mantra that Pichai has been repeating for several months.
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But let’s go in order. At yesterday’s earnings call, the search giant said 76 billion dollars of revenues (+1% compared to the same period of 2021, 75.3 billion), with an operating profit of $18.16 billion and a net profit of $13.62 billion (compared to $20.64 billion a year ago). For comparison, Alphabet reported $69.1 billion in revenue and $13.91 billion in net income in the recent quarter.
So a slight increase in come in in front of one substantial reduction of net income., when compared year-on-year.
The 2022 Pixels are Google’s best-selling phones ever
In this scenario, the Mountain View company stated that the combined sales of the Play Store and non-advertising revenue of YouTube (i.e. subscriptions) have registered $8.79 billion for the fourth quarter of 2022 compared to $8.16 billion in the same quarter last year.
Alphabet not distinguish the hardware sales from those of the Play Store, but Pichai said that Pixel sales are experiencing a moment of great momentumindeed, i Pixel 6a, 7 e Pro they are the generation of Pixels best sold everand have gained market share in every country where they have been launched.
It should be noted that Google has expanded availability of phones this year, also launching them in Denmark, the Netherlands, Norway and Sweden, which brings the total number of countries where Pixels are now available to 17.
To comment on the news, Pichai went further, and has confirmed what has been said previously, that is, yes will increasingly focus on Pixel devices. E Pixel Watchwhich has not seen such a widespread launch despite high expectations?
According to Pichai, who didn’t dwell on the subject, the device falls within the consumer context who think beyond phones and stated that watch falls underFitbit integration to bring it into their ecosystem, as well as partnering with Samsung with Wear OS.
In short, the plans are not known of the company about it, but it’s probably too early for make judgments.
More hardware, but with an eye to exclusive software, and cost cutting
There is another point on which Pichai lately he often insists and which he has also taken up in this one occasion. It is true that Google intends to invest more and more in your own hardware, but also in exclusive software.
This, according to Pichai, it is precisely what distinguishes i Pixel from the competition, quoting Magic Eraser e Photo Unblur like how it works exclusive, and they’re probably just the beginning of a device-only component of the company.
Overall, Pichai said the computational portfolio is incredibly important and allows Google to invest e drive innovation forward.
So Pixel e software. But there is a third point that Pichai often insists on, and that is expense management. The manager has never been afraid to cut (or lay off) and in the last year has repeated several times that the management of the business economy must be improved. Also on this occasion, Pichai then stated that they are working on improving hardware economics and on theirs overall cost structure.
It is difficult to read between the lines the implications of these statements in the great design of the company, given the habit of making erratic and sometimes difficult to understand choices, but it seems increasingly clear that Pichai wants to focus on few products and on what they do best: smart features.