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Pixel 3a increased Google's hardware sales by a ton last quarter

Google parent Alphabet saw strong gains in revenue and earnings thanks to improvements in Google's hardware business.

Published onJuly 25, 2019

Google Pixel 3a vs Pixel 3 back of phones crossed

Alphabet, Google’s parent organization, reported $38.9 billion in revenue for the second quarter, marking a 19 percent jump compared to a year ago ($32.7 billion). Google saw strong gains across business segments — including its hardware and Play Store units.

“Our effort to build a more helpful Google for everyone brings countless opportunities to help users, partners, and enterprise customers every day,” said Sundar Pichai, Chief Executive Officer of Google, in a prepared statement. “From improvements in core information products such as Search, Maps, and the Google Assistant, to new breakthroughs in AI and our growing cloud and hardware offerings, I’m incredibly excited by the momentum across Google’s businesses.”

The company generated $9.9 billion in net income, a massive increase over the $3.2 billion in income it recorded for the second quarter of 2018. Of note, the “Other bets” segment of Google’s business pushed upwards, potentially reflecting a turnaround the area responsible for the Pixel devices and Google Play Store.

Of note, the company released the Pixel 3a and Pixel 3a XL in May to critical acclaim. The affordable handsets deliver a Pixel experience, including the superb camera, for less than half the cost of Google’s flagship phones. During the Google income call with analysts, Google said the 3a helped it sell twice as many smartphones in Q2 2019 compared to Q2 2018.

Impressive. Most impressive.

Pixel 3a back camera macro

This is a “really strong quarter from Google across the board,” said technology analyst Carolina Milanesi to Android Authority. Google managed to reign in costs, which helped deliver positive numbers on the bottom line. Google’s shares were up in after-hours trading, suggesting that investors are happy with that they see.

“Considering that the devices and ‘Other Bets’ segments came in higher than expectations it seems that Google can do no wrong, which ironically might not help the current scrutiny around antitrust,” noted Milanesi.

Google has a big quarter ahead of it. The company is expected to release the next version of its mobile operating system, Android Q, as well as debut new hardware in the Nest Hub Max.

The company saw a significant year-over-year leap in the number of employees. Google had 89,000 at this point in 2018 and has 108,000 now. Total revenue for the year exceeds $16 billion.

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