Google is no longer a software company as people think when the hardware segment brings big profits.
Most of today’s technology companies produce hardware, and ‘tiptoe’ into software, advertising to prevent losses for hardware. But Google is different, this is a software company right from its inception, with famous products like Google Search, Youtube or Google Maps. But it is not so that the company’s hardware segment is weak, when CNBC recently announced that the array is worth up to $ 8.8 billion.
This number increased to 65% compared to last year, which contributed significantly to Pixel products. According to this newspaper, in the following year Google will grow strongly thanks to smart products and smart screens, but Pixel smartphones will still be the hardware that users choose to buy the most.
This year, Google earned a huge $ 3 billion profit just for the hardware segment. Compared to 2017, profit increased by 34%. According to analysts, profits will still increase, but the increase will decrease and by 2021 will be 16%.
Google’s biggest profit comes from advertising services. Google’s hardware devices are not sold for profit, but are products that the company can bring ads to users. Even in the past year, Google also gave users Google Home, accepting hardware losses to be able to profit from software.