Google’s Nexus 6 Inventory Flub Dents Holiday Revenue – Wall Street Journal (blog)

The Nexus 6 smartphone was unveiled by Google on Oct. 15, 2014.

Google Inc.

Google Largely exited the business of making mobile phones Motorola When It STI unit sold to Lenovo Group in October. But phones still Caused trouble in Google’s fourth-quarter financial results.

On a conference call late Thursday, Chief Financial Officer Patrick Pichette Said supply problems With The company’s new Nexus 6 smartphone dented Google’s revenue.

The Nexus 6 Went on sale in November to good reviews. Said Pichette But Google had “actual issues” and Could not get enough phones to meet demand.

In early December, Nexus 6 Were running out supplies online Within hours, According to Android Authority Android news website.

Google has HAD supply Problems with Nexus phones in the past, in part Because of how and why it Makes the gadgets. The Nexus is Google’s own brand; it designs the phones and tablets, Which are made by companies like Motorola / Lenovo and LG Electronics. Google does not aim to sell as many Nexus units as possible, but rather to use the brand as a guide for other makers of gadgets running the latest version of Android, Google’s mobile operating system.

Google’s troubles are a stark contrast to rival Apple Inc., Which Reported record quarterly results Earlier this week, partly thanks con sus Ability to keep churning out enough of Its New larger iPhones to keep up With surging demand. Apple CEO Tim Cook many buyers of new iPhones switched from That run on Android devices.

The Nexus 6 problems Contributed to weakness in Google’s “other” revenue category. Other revenue Grew 19% in the fourth quarter, Compared with a year Earlier, a sharp slowdown from 50% growth in each of the previous three quarters.

The growth dip Also Reflected Slower than expected sales from Google’s Play store for apps. Said Pichette Play store revenue was hurt by the rising value of the dollar, particularly in Japan.

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