Google is having a hard time selling expensive Pixels, cheaper options are coming

Google’s logic to get into the midrange mobile market is fairly simple. High-end mobile phones are just too competitive, in return making it difficult to sell the expensive Pixel 3.

Next month is the I/O Developer Conference, on the first day Google is expected to display it’s new, cheaper Pixel 3a and 3a XL.

CFO Ruth Porat, of Google’s parent company Alphabet, said that industry-wide pressure on high-end phones led to fewer Pixel sales last quarter compared to this time last year. Porat specifically cited “some of the recent pressures in the premium smartphone market.” Porat did not specify where the pressures are coming from, but whom else would it be but Apple and Samsung.

High prices are driving down consumer demand across the board, forcing smartphone owners to hang onto their devices for longer than the annual update cycles to which the mobile industry has become accustomed to.

On the earnings call, Google CEO Sundar Pichai was pressed on whether investors should be concerned that the company’s hardware efforts were doing little to impact its overall revenue, comparing to Microsofts failed venture into the smartphone business.

Google does not share revenue for its hardware-related products in its quarterly earnings reports, but the segment is growing despite the lackluster phone sales. They have hit nearly $5.5 billion in revenue this past quarter. Probably due to increased sales of Chromecast devices, laptops, Google Home speakers, and other various devices Google dances around.

The Pixel 3, launched with a price tag lower than Apple and Samsung’s premier models and came equipped with a best-in-class camera starting at $799. Google also provided a couple of variants that pushed its price tag up to $999.

Less than a year later you can get a brand-new Pixel 3 or Pixel 3 XL for $200 off from Google’s online store. This discount is set to change next month, just in time for the I/O Developer Conference,