In the past few years, Google is known for artificial intelligence and software services, but have no masterpieces in hardware. Until recently, Google Home and Pixel Phones have successfully combined hardware and software, the sale have been pretty good. Mark Mahaney the Royal Bank of Canada Analyst said that Google has a successful start and it's the big impact to the industry.
According to CNBC, in terms of financial statements, Google's parent company Alphabet has included hardware sales in "other income" projects, which also include the cloud and the App Store. Google’s main revenue still comes from advertising, which accounted for about 85.8% in the third quarter of this year and only 14% in other categories.
With the hot sale of related products, Mahaney analyzed in the report that the proportion of hardware revenue will increase. It is predicted that the total revenue in 2018 will reach 8.8 billion US dollars, about 6% of the total income, and in 2021 it will increase to 19.6 billion US dollars, 8% of total income.
Mahaney also mentioned that the value of Google's hardware still lies in the artificial intelligence and service platform, which in turn attracts more advertising. For example, when Google Home becomes a must-have helper at home, radio ads usage rate will increase, and the company will have more possibilities to profit from the advertising industry.
Google Home review
Google had already known the great potential of smart phones since 2011, thence bought the Motorola's mobile division. And finally have no products as successful as Pixel Series. The subsequent purchase of Nest Labs and Boston Dynamics, even the Google Glasses are didn't so successful. Now with the rising market of Tablets and Smart Phones, analyst said that hardware is still only a small part of Google's core, but it will be the key to future growth and strategy.
The Pixel's camera evaluation is very excellent and Google Home's sound quality had the good comments from customers. Voice assistant has been rated as the smartest assistant by media. However, not all Google products assure the great quality. For example, Pixel Slate which is compared with Surface and iPad Pro, is considered to be inferior to other products, and the specifications are not as good as expected.