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Google Pixel sales take a hit, cleaning up after mispriced Android One

Posted by PriceBeam on January 26, 2017

Google’s latest attempt to conquer the smartphone market, the Google Pixel is reporting declining sales in India (the world’s second largest smartphone market) due to its heavy price tag.  Consequently, many are now anticipating a price correction from Google to regain momentum. However, the Google Pixel might just be doing exactly what Google wants it to.

When Google first developed Android One, they aimed to provide a budget device to India and other emerging markets. But their collaboration with low-end electronic manufacturers backfired as the Indian consumers still wanted high-quality smartphones. If you're pricing too low, however, customers will assume that the product is of poor quality, and this creates negative spillover effects upon the rest of Google’s products.

Google Pixel’s high pricing is now rehabilitating their image in the smartphone market, and the drops in sales they are suffering in the short run is a small price to pay for maintaining their strong brand position.

Read how higher price can lead to higher output for your business.

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Topics: Pricing, Marketing

Written by PriceBeam

PriceBeam posts regular guides, articles and news related to pricing and strategy. Go have a look!