Nexus 5, Chromecast and Play Store Drove Google Q4 2013 Sales
It’s no secret that the Nexus 5 and Chromecast are two of Google’s hottest products on the market. However, the search engine giant recently released their Q4 2013 earnings report, revealing a change in momentum from advertising revenue to physical product sales.
Wall Stress Prediction For Google Q4 2013
Wall Street predicted that Google would pull in $16.75 billion in revenue with a share price of $12.26 for Q4 2013. According to the financial reports released by Google, the Mountain View company surpasses Wall Street’s revenue expectations with $16.86 billion in revenue for Q4 2013. However, they did come up slightly short on share price at $16.01.
Larry Page, Google CEO, said the following, “We ended 2013 with another great quarter of momentum and growth. Google’s standalone revenue was up 22% year on year, at $15.7bn. We made great progress across a wide range of product improvements and business goals. I’m also very excited about improving people’s lives even more with continued hard work on our user experiences.”
Why The Drop In Share Price
The drop in Q4 2013 share price is likely due in part to Motorola issues. They acquired Motorola several years ago, but have since experienced hardware and software compatibility issues with Motorola devices. In an effort to cut their losses, Google released announced plans to sell Motorola to Lenovo for $2.9 billion.
The Good News
It’s not all bad news for Google, as the company made huge strides to spread their revenue through a variety of mediums. In the past, Google has relied mostly on advertising revenue from their Adwords program. When you search for a keyword in Google, ads are displayed on the top and right-hand side of the screen. Each time you click one of these ads, the advertiser is charged — which is basically how the Adwords program works.
Up until now, Google’s revenue has come primarily from their Adwords program. However, the company’s Q4 2013 reports show a new trend for the company: a large portion of Google’s revenue now comes from product sales, primarily consisting of the Nexus 5 smartphone and Chromecast internet TV device.
Google Nexus 5 Beefs Up Holiday Sales
The Nexus 5 was one of the hottest tech gifts over the holidays, which certainly contributed to Google’s Q4 2013 earnings. You can check out some of our previous articles here at thenexus5.com to learn more about Google’s smartphone, but they really hit the nail on the head with this device. It’s fast, versatile, stylish, constantly updated with new improvements, and with an entry-level price of just $349, what’s not to love?
