Smart speakers and digital assistants have rapidly increased from a curiosity to a commodity, and Google embraced the high tide better than most, offering a competitive product to Amazon's Alexa speakers, despite being years late for the market.
Now, RBC Analyst has estimated that Google has not only been able to effectively gain market share but is also making money, generating $ 3.4 billion in 2018 revenue from its Google Home devices, all with a healthy profit margin of 25%.
That's just a little bit off the revenue of its line of pixels, with Google believing it has sold 52 million Google home devices worldwide, with 43 million in the US.
While Google has a healthier profit margin on its Pixel phones, RBC expects Google Home device sales to double by 2020, making the revenue stream comparable. Revenue is expected to rise to $ 7.5 billion.
The rise of Google Home was meteoric, with 2 million devices sold in 2016, 15 million in 2017 and 35 million in 2018, with the product supposedly 19.5 million users (with multiple devices) in the US.
The rise of the category as an alternative to the stagnant smartphone market evidences, to some extent, the failure of companies like Microsoft to penetrate a new category of smart devices and also the benefit of having synergies between its smartphone platform and loudspeakers intelligent
Read more about the RBC report at CNBC here.