Google aims to become much larger in hardware

Speaking to investors during the firm's first-quarter earnings call, Alphabet CEO Sundar Pichai revealed his company is still a couple of years away from achieving its ambition in the hardware market. No specifics were mentioned, but Pichai explained Google is still two to three years away from achieving the sort of scale it wants to hit. Last quarter, "other revenue" made up $4.35 billion of Google's revenue, up from $1 billion a year ago. How much of this is hardware-related isn't known as the figure also includes other sales, like the Play Sotre.

Part of Google’s long term hardware plan includes “scaling up our go-to-market strategies in the US and internationally so we can drive adoption,” he added.

The CEO estimated it will take two to three years for the hardware segment to grow to the level where Google would like to see it, but did not elaborate on what targets the company is aiming for.

In Q1 2018, Google’s hardware segment made up just a fraction of Alphabet’s total revenue, which grew 26 per cent year-over-year to $31.1 billion. The vast majority ($26.6 billion) of Google’s earnings once again came from advertising revenue, driven by mobile search. Via: MobileWorldLive