Analyst: Google’s hardware almost made $3 billion in profit for 2018

From Pixel phones to Home smart devices, the "Made by Google" program produced plenty of hardware over the last three years. It also produced approximately $3 billion in profit in 2018, according to estimates from RBC Capital Markets.

Out of the $2.98 billion in hardware profit that the bank estimated, $1.78 billion came from Pixel devices. Devices include the Pixel smartphones, Pixelbook, and Pixel Slate.

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More impressive is the growth that Google's Home devices have reportedly had over the last three years. In 2016, Home devices reportedly brought in $49 million in profit. Fast forward to 2018, when profits reportedly jumped to $847 million.

That's an increase of almost $800 million in just two years.

Lastly, Nest and Chromecast devices reportedly brought in $245 million and $110 million, respectively.

As good of a year as Google's hardware division may have had, it's poised to perform even better in 2019.

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RBC Capital Markets estimates that Google's hardware will bring in $4.30 billion next year. Pixel devices are estimated to bring in $2.19 billion in profit, while Home devices might see a substantial jump to $1.64 billion in profit.

Growth is expected to slow down as we get to 2021, but the numbers still project some sort of growth over the next three years.

Revenues mostly tell a similar story. According to RBC Capital Markets, Pixel devices accounted for $3.42 billion in revenues for 2018. Home devices, meanwhile, accounted for $3.39 billion.

Starting next year, however, Home devices might overtake Pixel devices when it comes to revenues. That will remain the case through 2021, based on estimates.

Home devices have a lower barrier of entry relative to Pixel devices when it comes to pricing. That said, Pixel devices bring in more profit than Home devices because of those higher price tags.

Keep in mind that these are only unofficial estimates. That said, hardware is looking more and more like an important business arm for Google.

from Android Authority http://bit.ly/2Rdd1sS
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