Google Blames Nexus 6’s Supply Drought for its Revenue Dip
Recently a performance report was released by an analysis firm, Strategy Analytics that declared Apple as the top grosser of year 2014. Apple earned the highest revenue that broke records and Google was nowhere to be seen. The company considers imbalance in demand and supply of the Nexus 6 as the reason for the revenue dip.
Chief Financial Officer and Senior Vice President of Google Patrick Pichette said that the supply problem with the Nexus 6 hammered the company’s revenue. He also remarked that the demand of Nexus 6 could not be met, as they faced several production issues.
The company doesn’t aim to produce the products to earn revenue from them. In fact, the company manufactures products as a guide to other manufacturers so that they can implement and improve the latest Android OS onto their products.
Less mobile units means less sale, and less sale directly affects the overall revenue. It’s not the mobile division that fetch the company money, but the Nexus 6 problems contributed to the slow growth rate in other sectors too.
Play Store’s earnings also saw a steep decline, which Patrick stated is because of the rising value of the dollar, especially in Japan. The company has stated the reason for the loss, but hasn’t commented what would its next step to fix it would be.