Pixel launch will test Google hardware strategy and Apple rivalry | MarketWatch

“The devil is in the details,” said Dawson over the phone. “The reality is they sold 2 million phones because of limited supply, limited distribution and that they were not differentiated in the market. Unless those things change, it’s not going to be that material to Google’s sales. Even if they move twice as many units, that’s still a tiny fraction of the global smartphone market.”

Google could juice its revenue from the Pixel with a new pricing strategy for its phone lineup, much like Apple’s iPhone X announcement earlier this month. Dawson says that it would not surprise him to see a price increase in the new Pixel phones driven by more expensive components and rising memory costs.

“It’s quite possible that Pixel devices will be more expensive than last year,” Dawson said.

Google could go the other way, however, and look to offer the Pixel at a much lower price than the iPhone X to disrupt sales of Apple’s latest and greatest smartphone, which will begin preorders later this month. While it could weigh on Alphabet’s profitability, a larger quantity of cheaper sales could have a better chance of making a difference for a company expected to surpass $100 billion in annual revenue for the first time this year, and would fit the Android vs. Apple rivalry as it has been known so far.

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Pixel launch will test Google hardware strategy and Apple rivalry – MarketWatch.