Google Optimism
Google (GOOG) is expected to release its latest Pixel smartphone, the Pixel 6 and Pixel 6 Pro at the end of this month, and has said to have placed orders for 7m units from suppliers. While these are small numbers compared to smartphone giants like Samsung and Apple (AAPL), the tally for last year’s Pixel series sales were 3.7m units, putting the current order rate over 89% higher than last year. Google’s optimism extends further in that they have been said to have placed orders for ~5m Pixel 5 series phones, which were released last year around this time. The pixel line i(prices are expected to be $600 and $900) is considered to be a competitor to high-end flagship brand models at a lower price, but has yet to capture significant share of the smartphone market. While pre-ordering has begun, we doubt initial order rates have had anything to do with pre-delivery orders and reflects Google’s optimism about its ability to gain share this year. While they risk ~$1b to $1.5b with such a high order rate, it seems a bit small in perspective given their $182b sales base last year.
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