Google Nexus 5 black aa 11

Google announced financial results for Q4, highlighting the 99 percent revenue increase from last year in the non-advertising business, which includes hardware and the Play Store.

More precisely, “Other Google Revenues” jumped from $829 million in the last quarter of 2012, to $1.65 billion in Q4 2013. Other Revenues is the money that Google makes outside of its core business, which is displaying ads on its search engines and partner sites. Granted, the proportion of these revenues is still small, at 10 percent of the total Google revenues, but the company declared itself pleased with the performance of a business that analysts have long dismissed as minor.

Importantly, Other Revenues does not include Motorola. The handset maker, which Lenovo will take over following a $2.9 billion deal, registered massive losses of $384 million in the quarter.

During the investors call following the announcement, Chief Business Officer Nikesh Arora briefly touched on the performance of Google’s hardware products, commenting that the Chromecast and Nexus 5 did well over the holidays. The exec said there was “strong interest in Nexus hardware” and that the Nexus 5 (launched on October 31) had a “great reception”.

Arora also praised the performance of the Play Store, and noted that more users signed up for Wallet, the company’s payments system, as a result of increased interest in downloading apps and media from Google’s digital store.

CFO Patrick Pichette chimed in with a comment on Nest, which Google supposedly just wants to help scale. TechCrunch reported yesterday that Nest would become Google’s core hardware developing unit, in charge with much more than smart home appliances.

In vague terms, the company reiterated its interest in hardware: “As you know from the Nest acquisition, Glass and wearables, we’re continuing to innovate.” This last statement seems to confirm the recurrent rumor that new wearables, particularly a smartwatch, are in the pipeline.

Google’s praise of the Nexus line could be an attempt to pour water on speculation that the company would kill it starting with 2015, sparked by Eldar Murtazin’s claim that Google would axe the Nexus as a concession to Samsung. Then again, the non-committing language used by Google’s executives leaves plenty of room for interpretation.

Bogdan Petrovan
Bogdan is the European Managing Editor of Android Authority. He loves tech, travel, and fantasy. He wishes he had more time for two of those things. Bogdan's phone is a Nexus 6P.
  • Sam Del Valle

    Good good

  • Tanner Hoyt

    I don’t think Samsung minds the Nexus line since it is relatively unknown outside the tech enthusiasts of the world. However, if it begins to become more mainstream, Samsung may feel more threatened by it and push Google to end it.

    • WestFiasco

      I seriously doubt that anyone who buys a nexus device would purchase a Samsung one if the former disappears.

      • Cuauhtemoc Sosa

        For me it comes down to value and I can’t justify the price of a Galaxy phone with the specs that I like ie. Nexus 5. So I guess I agree with you at least I wouldn’t buy Samsung phones.

    • jjordan

      I think we are all giving samsung to much credit. Without google’s android operating system; samsung would still be struggling in the mobile space. I feel samsung needs android more than google needs samsung. Tizen sucks, and would not be well recieved.

    • tocsin

      If Samsung did feel compromised by the nexus line they may pressure Google into letting Samsung make them instead of just ending it

    • DrCarpy

      Agreed. I think the Nexus line had a place. Google has now reached the masses. To create devices open Google up to revenue losses. They control the software people want, so why take losses that are unnecessary? That’s awful business! Outsource Stock Android to as many OEMs as possible. That allows for a no compromise Nexus type experience that the masses can enjoy.

  • MasterMuffin

    The Nexus line isn’t going anywhere. Maybe I should tweet this to get in the news :D

    • Shark Bait

      Hahahah that is all it takes these days !

      • MasterMuffin

        It surely does seem so!

    • Adam Koueider

      If you’ve got a track record that includes correctly identifying the GS4 launch and more recently that Motorola was going to be sold off before the rumors even began, you’ll definitely be getting in the news :)

      • MasterMuffin

        I shall do my best!

      • Arturo Raygoza

        but didn’t they say that guy has a hit and miss track record?

        • Adam Koueider

          Yep he does, but he’s had a few big hits as well.

  • I am curious as to what would they name the next Nexus Smartphone as.

    • T.J.

      It probably depends on the size.

      • Nathan Buffington

        Maybe Nexus 5.1? I wish they did that with other phone/tablets.. Like making the Nexus 7 screen a little bigger and call it the Nexus 7.1. (to distinguish

        • T.J.

          That makes everything way more complicated. I’m a fan of the model they have with a phone and a big and small tablet. I wouldn’t mind if they made a phablet though too. A 4.75″ phone, 5.5″ phone and 7″ and 10″ tablets.

    • Bradley Uffner

      I was wondering about that myself. They sort of backed their current phone naming scheme in to a corner when they released the Nexus 7 and 10 tablets.

      • Slosh

        yeah, i would have preferred names like Nexus Phone for the nexus 5 and say Nexus Tab for the nexus 7 and like Nexus Tab+ for the nexus 10. The whole numbers behind the model name is so lame to me.

    • Arturo Raygoza

      nexus 5 2014

  • apianist16

    The Nexus 4 & 5 both sold out at launch, so I would guess that they aren’t going anywhere.

  • Arturo Raygoza

    god I hope the nexus line survives

  • Jayfeather787

    I love Nexus products and the chromecast!!!

  • junaid naseer

    if they kill nexus, what the hell am i gonna buy …..