So Google’s poorly leaked / released financial results for the third quarter of the year caused quite a commotion today, with Google shares dropping almost 10% when news broke out that Google has missed estimated earnings for Q3 2012.
However, while the final report offers various details about the Search business, and highlights Motorola’s continued losses, details about direct device sales are not offered. But analysts believe they have found some evidence in the final earnings report that points to 800,000 to 1 million Nexus 7 sales during the period.
According to ZDNet, Google’s “other income” line from its earnings report showed revenue of $666 million, up from $385 during the same period last year. And that other revenue may reflect Nexus 7 sales. Here’s what Piper Jaffray analyst Gene Munster said about those numbers:
We believe Google’s Other Income of $666 (compared to Street at $477) suggests that Google likely sold 800k-1m Nexus 7s in Q3. Excluding our estimated Nexus 7 impact, core net revenues would have been up 2.5% q/q vs. 4.7%.
If those numbers are correct, then it means Google has sold at best over 10,000 Nexus 7 units per day since the device was announced and offered for pre-order in the last days of June. Is that too much? Too little?
Google has not specified any Nexus 7 sales numbers to date – and we would assume such numbers would be made public since, after all, Google keeps announcing daily Android activations every chance it gets.
Furthermore, earlier reports said that Google would sell from 6 to 8 million Nexus 7 units this year, but is that really possible / happening?
Let’s not forget that the new Kindle Fires are also out and that the iPad mini will soon be announced to deliver yet another blow to Android tablets. Pair that with the launch of Windows 8 / RT tablets, and you’ll see that Android tablets manufacturers will have a tough time getting the upper hand in a niche they failed to conquer.
Finally, if those Nexus 7 sales numbers, then Carphone Warehouse’s recent revelation, that the Nexus 7 is the best sold Android tablet in its lineup, paints a dire picture for the entire Android tablet ecosystem.
Does anybody know how many Nexus 7 tablets have been sold to date?
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Considering analytics has shown that the ipad only has a bit over 50% of the tablet market, I think android is doing fine. The android segment was, IIRC, pretty split between Kindle Fires and standard android.
I suppose the problem, if there is one, is that the only androidish tablet that is doing exceedingly well is the Amazon one. However, the PC world seems to have done alright with its many models but standard OS. Being able to optimize to a single device is nice but not required, again, as the PC market has shown.
What analytics? iPad web usage according to Chitika is 91% of all tablet usage. iPad sales account for 68% of all tablets according to IDC, Gartner, IHS iSuppli, and Canalys.
You might want to check the expenses. Since Google wasn’t supposed to make any money on the Nexus and rather go for the income from Google Play sales, If there is other income of $666 million, there should be an expense of about that much, unless the manufacturer is accounting for the Nexus 7 units in which case $666 million might be profit. I don’t have the report to look at, I’m just saying based upon the limits of what I read in the article, it’s possible they sold more than 1 million units.
Revenue means the total amount sold, not profit
Exactly. $666 Million divided by $220 (some at $249 and some at $199) so I picked $220, would be 2.96 million units
What Brett said. Even if it was off of 1 million tablets, the tablets didnt cost 666 bucks each for the revenue to be 666 million.
Their other revenue last quarter BEFORE the Nexus 7 was released was $385 million. $385 million WITHOUT the Nexus 7. Now it is $666 million, after the Nexus 7 has been on sale for a quarter. So their revenue in the “other” category increased by $281 million since the Nexus 7 has been on sale.
$281 million divided by $220 would be 1.3 million units.
But the entire 666.million USD is not all Nexus 7 sales. Based on growth of that figure, only about 200 million USD represents the Nexus 7. Redo your math with better estimates.
the biggest problem hindering androids dominance is fragmentation. We own several android devices and they’re stuck at different versions. They’re made by reputable companies.
Unfortunately, this won’t be changing in any meaningful way in the near future.
It’s manufacturers and mobile carriers/operators who are deliberately (for their own good of course) helping to continually fragment Android. The bewildering number of different possible combination of manufacturers, operators, devices, specifications etc doesn’t help their either.
Don’t expect a manufacturer to release a new OS on a year old device that will give it a new lease of life for another year equating to the (fabled) ‘lost’ sales of their new products…
ASIANS CAN ACTUALLY READ MINDS!!!!!!!!!!!!!!!
Look it up on Google! ITS TRUE!!!!!!!!!!!!
Then if youre asian, you can read my mind is telling you to get lost.
Only 1M ? I wah expected something like 2.5-3 by now.
That figure is really only a guess – it seems improbable that after the last 3-4 months being on-sale more or less worldwide,it’s less than 3mil…
This is probably one of the worst estimates I’ve seen so far. Here’s why:
1) Most analysts have absolutely no idea how to forecast “Other Income” because they have no idea what the underlying drivers are.
2) Munster’s deducting wall street averages from actuals to arrive at a “Nexus 7 revenue estimate” when he has no idea if other analysts have taken into account any Nexus 7 impact on “Other Income”.
3) Because “Other Income” is such a small proportion of revenue, the average Wall Street estimate has an obscenely large margin for error, which could put Nexus 7 sales estimates anywhere between 0 to 10 million.
4) Shawne Wu’s supply chain checks indicate that 5-6 million Nexus 7s are in production for the December quarter, which is a ridiculously large jump if only 1 million were sold in Q3.
All in all, Munster has no idea what he’s talking about.
Didn’t Shaw Wu’s “supply chain checks” also say that the Apple iTV would ship in Q2 2012?
Supply chain checks indicate manufacturing signals, not product launch signals. The iTV was shelved because Apple couldn’t get cable operators to subsidize it.
Here’s another, more obvious reason to ignore Munster. Most of the Nexus 7′s sales revenue goes to Asus, not to Google. Google may just get a distribution/retailing fee. Maybe not even that. Either way, Munster is one of the worst analysts out there.
Well, his track record is spotty to say the least. I guess you have a point.
Anytime a dumb writer like this quotes a Geniune iBorn Again iCrAppleholic iDIOT….. like Gene Munster, you know they got no right to be writing on a supposedly Pro Android site!
We already knew Google doesn’t make any money on Nexus 7, because they’re really only a Branding partner. If anyone wants to know the sales of Nexus 7, obviously those numbers won’t be found at Google. They’ll be found at ASUS…….. the same way that if I want to find out how many Galaxy Nexus smartphones have sold, I’m better off finding that information at SAMSUNG!
btw…. here’s a much more reliable way to find out the truth than reading this garbage “Copyist” post here:
Yeah…. Chris a REAL HONEST GOODNESS TECH WRITER….. not a Gene Munster “Copyist” or RDF FUD-aholic who twists up Carphone Wharehouse’s Nexus 7 Story. Sameer Singh is an honest Tech Writer, who gets it right, because he actually uses his own brain and uses facts…. hyperbolic FANBOI FUD…. like your buddy Gene iMunster! ….not much better than his other Google Hating Twin at ZDNET…. Larry “The Pigman” Digman! ;-P ….just like always all of YOU iDIOTS are doomed to be embarrassed when the real numbers are released! Google has a way of doing that with fools like YOU!!! lol….