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The launch of the Google Pixel and Pixel XL smartphone about a month ago represents a new hardware era for Google. A new report from the financial firm Morgan Stanley is trying to predict just how many of these phones will be sold in 2016 and 2017.

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3 weeks ago

Morgan Stanley believes Google will sell 3 million Pixel phones by the end of 2016, which it says will generate about $2 billion in revenues for the company. It also predicts the company could sell between 5 to 6 million more Pixels in 2017, with total revenues of $3.8 billion.

While those sales numbers would be a good start for any new smartphone brand, they are only a first step in Google’s new move to become more competitive in the market. Those stats are still well behind those from other companies, such as Samsung, which reportedly sold over 71 million smartphones in the third quarter of 2016. Apple sold 43 million iPhones in the same time period.

Morgan Stanley also noted that, due to its higher cost of materials, Google gets about half as much in profits from Pixel sales as Apple does from the iPhone. However, it added that the Pixel could see more money generated from purchasing Android apps and services than normal. Features such as its impressive camera and its support of the Daydream View VR headset will help in that regard, along with its deeper integration of apps such as Android Pay and the new Google Assistant. This also might help close the gap between Android app revenue and iOS, which currently has a 3 to 1 advantage.

A recent report from India claims that the Google Pixel and Pixel XL have already claimed about 10 percent of the premium smartphone market in that country. All in all, these numbers and predictions seem to show that the Pixel lineup is doing well so far, but only time will tell if it continues to grow against a lot of competition.

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