Google’s smartphone business grew rapidly in Q1 2019. Google has been among the world top 10 largest smartphone vendors by revenue this quarter. Pixel’s ASP is the second highest among all major vendors, only behind Apple. Its profit margin however remains negative due to relatively small scale.

Google launched two new models recently at Google I/O 2019: Pixel 3A and 3A XL, targeting mass market with more affordable price tag. Meanwhile, Google managed to extend distribution partnership with T-Mobile, Sprint and US Cellular in the United State. Outside United States, Pixel 3A and 3A XL will be launched in 15 markets, including India, Canada, Germany, United Kingdom, Australia, Japan, Taiwan, Ireland, France, Italy, Singapore, and Spain etc.

Looking forward, we expect Google Pixel phone is well-positioned to take off in 2019, thanks to the enriched portfolio across multiple price tiers, as well as the extended distribution channel. Also, Google Pixel phone would benefit from the scale back of Huawei in Western Europe and Asia Pacific markets this year. While the ASP will drop, backed by the soaring scale, Google Pixel phone is likely to turn to profitable this year.

Our latest report Q1 ’19: Google: Pixel Phone Ready to Take Off is published. WSS client could access the full analysis via this link.