Google relies on Pixel. Comparisons with iPhones are disgusting, but this almost niche mobile phone is gradually attracting the attention of more people. With Pixel 8, an important step has been taken in this direction in the effort to reach more users.

Because Pixels have always been a reference in Android but sales are not increasing. And much of the blame lies not with the Pixel itself, but with Google’s logistics and sales strategy. They are slowly taking notes.

Pixels also want to be ‘mainstream’

We took advantage of the Pixel 8’s arrival in Spain to speak with Xataka’s Michiel van Eldik, EMEA head of Google devices and services. We asked him what has changed this year and how Google views the mobile phone industry. It is a sector that is not experiencing its best period, but according to Google’s personal vision, the sector is not viewed the same way.

“We’re growing pretty significantly with Pixels. We’re the fastest growing manufacturer right now. You can look at IDC data. You can look at Gartner. In fact, We are currently the only growing manufacturer“van Eldik explains.

According to this Latest data from IDCThe Pixel series has sold a total of 37.9 million units since its launch in 2016. More importantly, almost 40 million Pixel phones have been sold in recent years, with double-digit growth. By comparison, the Galaxy S23 sold approximately 18.63 million units in the first half of this year, according to Counterpoint Research.

“If we look specifically at the European market, we see value increasing even though volume is decreasing. Most countries have seen a 10 to 20% decrease in sales volume, but they are maintaining value. Regarding the seven years of Android updates promised by the Pixel 8, “More durable and sustainable products call. “We are trying to make this a reality,” he explains.

This expanded support is also reflected in how operators offer terminals, with the duration of contracts being extended from 24 months to 36 months. In Spain, Google decided to invest in Orange to offer new supported devices. An operator they have been in a relationship with since 2015. In Portugal they do this with Vodafone.

Michiel van Eldik has been at Google for nearly five years, but before that he had extensive experience as an executive at Telefónica and Vodafone. This is not surprising Google prefers to turn to operators to increase Pixel’s popularity.

Originally, the Pixels were only sold through their online store. With the Pixel 7 last year, Google opted to expand to Amazon and start selling them through the e-commerce giant. They will be sold alongside the Pixel 8 through the two most popular retailers in Spain: Mediamarkt and El Corte Ingles. Both on their websites and in physical stores where they will have dedicated areas.

In this attempt to increase Pixel sales, Google knows it needs to do serious logistics work. More than enough at stock level. Van Eldik, who clearly turned the page on the supply problems of mobile devices after the pandemic, defines “Anyone who wants a Pixel can buy it.”

Google still considers itself a small company in the mobile device space. In its current form, the communication language resembles the communication of a company to be discovered rather than the communication of one of the largest companies in the world. “Google wasn’t a hardware company, it took us years to achieve this. Pixel 8 is 100% Google engineered,” he explains. The Tensor G3 is the third generation of its processor, and Google rates it “on par with all competitors, if not better.”

But “hardware is hardware. We’re trying to complement that experience with our own functionality.” This is where artificial intelligence comes into play. When you look at what’s new in Pixel, you’re more interested in all the editing and automation functions they include, rather than the selected components. From ‘best shot’ to ‘Audio Magic Eraser’.

A descent that is progressing at a good pace but is still incomplete

“When we work with a new retailer, about 20 to 25 domains of Google are affected,” Van Eldik explains. From marketing to sales, customer service and warranty. They justify the gradual introduction of new products and their arrival in new countries. “We will not stop. We will also reach Andorra or Liechtenstein,” Van Eldik predicts.

This 2023 will be the first sale of the Pixel Watch in Spain. But we still don’t have a Pixel Tablet or Pixel Fold. The catalog of Pixel devices for Spain is starting to be notable, but we’re still not in first place.

“Whenever we enter a new market, we want to focus on the phone first. And the reason we don’t focus too much on the ecosystem is that if we have to explain the phone, the watch, and the headset to a consumer, they will completely miss it. There are so many use cases because there are so many messages there,” he justifies .

We see an example of Google’s position with the Fold. “We want to make sure people understand our product, especially since they will be comparing it to others.. We launched the Fold and it was incredibly well received. This gave us great confidence. But we want to make sure we have the infrastructure to actually support this product. “The reverse logistics of what needs to be implemented to support the Fold are completely different from a traditional smartphone.”

More expensive (and also more durable) mobile phones

Pixel 8 is more expensive. The price of the Pro model was 899 euros, now it is 1,099 euros. This isn’t something the company denies; they justify this by the fact that they are now better devices and designed to last longer. These seven years of updates are available to a user who purchased a Pixel 8. Keep up to date until 2030.

“Every company has two issues with pricing: inflation and ethics, which should not be underestimated,” explains Van Eldik. And he means that a premium product should have a premium price: “We continue to believe that we offer great value for the price.”

Google states that the market value is higher in the higher range. In the mid-range this is pure sales volume, but that’s exactly what’s changing as users use their devices for longer and longer periods of time. In addition to the updates, Google doesn’t forget about sustainability, with a commitment to 100% recycled aluminum and paper packaging.

Google’s sales were very low, but growth was steady. While sales for companies like Samsung, Motorola and even Apple fell, Google grew 59% in the US in the second quarter, according to Canalys.

When asked about the role of Chinese Android manufacturers, van Eldik said that “Europe is an incredibly difficult market” but “Google not only has Pixel, we also have many partners with Android“.

Even though the Pixel 8 was produced between China and Vietnam, Europe has a role. So what role do we have from here? DeepMind, Google’s primary initiative in artificial intelligence, was originally from London, Michiel recalls.

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