800,000 Pixel 5 phones to be sold in 2020 is what Google and mother company Alphabet have stated as their goal. Why are they aiming so low?
The Mountain View company is keeping its expectations down when it comes to the new Pixel line, as Alphabet indicated that the Pixel 5 is not a hot topic for smartphone connoisseurs.
Just this year, in February, Alphabet held its Q4 2019 earnings call, shedding some light on hardware sales.
A grim picture of Pixel 5 and Pixel 4a Sales
If you combine this information with phone retailers’ reluctancy to go over that one million units quota, we can understand why retailers demanded only 800,000 units for their stocks of the Pixel 5 to be sold before the end of the year.
On another note, production for the 2020 Google lineup across its current line: Pixel 5, Pixel 4a 5G, and Pixel 4a is only 3 million units.
We could assume that Google lost some it’s trust in the hardware side of things after the results they registered in the past two years. Why? Well, the answer is simple. In small increments, they can control costs and manufacturing, and cater to the market on a need basis.
Google only shipped 1.5 million units in the first six months of the ongoing COVID-19 pandemic. In 2018, the Pixel numbers were higher than this, standing at 4.7 million.
But the numbers kept going down year after year. In 2018, we were talking about premium phones, not the mid-range king that the Pixel 5 is gearing towards now.
Is Google trying to say the Pixel 5 is premium mid-range?
These 800,000 units can also have a different meaning. Google could be trying to reposition the Pixel phone as a premium mid-range, and small batches of phones can increase demand if the communication is implemented correctly. Just look at what Adidas is doing with the Yeezy brand.
If Alphabet manages to turn the Pixel line into a fashion statement rather then just a phone, maybe they will invest in some crossovers with other brands or new color schemes, and Google can come on top.
Of course, this is only a theory, wishful thinking if you may, knowing full well that Google is first, and foremost, a software company. This aspect is the decisive factor when it comes to the bottom line. Google is going to stick with what they know best.
Google is keeping things real, so to say. They realized that in the time of the COVID-19 pandemic, sales are not going to be exceptionally high, as the global market tends to contract in times like these.
Pixel 5 Sales In A Challenging Market
800,000 units could mean a realistic goal, even achievable if Google is seeking not to have units on store shelves.
Produce as you need, and serve the customer in lots. This might be the winning strategy in the time of Corona, as Alphabet is a top dog in the industry, but has no fleet to battle giants like Huawei, Samsung, or others. Hence the need to produce phones in small quantities, and then restock as the unit count runs dry.
Google is heading in a new direction with these developments. The small numbers signal a change in the way the Mountain View company is doing business in the hardware sector from now on. If they can position the Pixel line, especially the Pixel 5, in a premium mid-range sector, Alphabet will win in the long run.
This way Google can make sure anyone who wants a Pixel 5 this holiday gets one. They also keep manufacturing costs to a minimum. What do you think? Is Google’s apparent strategy enough to convince you to get one or relaunch Pixel as the go to midrange smartphone?