Google has just announced their quarterly financial results for Q1 2015, and while the overall picture is good, there’s a bit of bad new for Nexus devices. Google refers to the money it earns from the Play Store and Google Store as “other revenues”, and while overall “other revenues” has increased to $1.8 billion, up 23% year-on-year, when compared with last quarter, this revenue stream has actually fallen by 3%. In the earnings call, Google CFO Patrick Pichette attributed this decline to the fact that Nexus devices aren’t selling well anymore, in particular the Nexus 6, which hasn’t been the financial success that the Nexus 5 and Nexus 7 were.

You can kind of understand why this is the case – the Nexus 5 ($349) and Nexus 7 ($249) were significantly cheaper than their successors, the Nexus 6 ($649) and Nexus 9 ($399), and it’s obvious that the almost double-the-cost Nexus 6 is a bit of a tough ask for what is essentially an enthusiast’s device. Having said that, it’s unlikely that Google will bat an eyelid as the Nexus line, as we all know, is less about being a commercial success but getting quality devices into the hands of developers and enthusiasts – though I doubt they’d complain if it actually made money too. We’ll have to see if Google changes their strategy with the next Nexus smartphone and goes back to a cheaper device.

What do you think about Nexus devices not doing too well? Let us know your thoughts in the comments below.

Source: 9to5 Google via TalkAndroid

  • aergern

    Maybe Google should not have depended so much on carrier sales of the N6. If all carriers are selling it then of course the play store sales will go down. In this case 1+1 does equal 2.

  • WghUk

    I started with the Nexus 4 then upgraded to Note 3. Didn’t like the non-vanilla Android so wanted to go back to Nexus’s. Nexus 6 came out and wanted to get it but out of stock. Waited a few months, still out of stock. So can’t be bothered with it any more. Another 6 month down the line, here I am again considering whether to get it. With so many choices now, the price of the Nexus 6 isn’t worth it!!! I’ll wait until the next Nexus phone comes out. Hopefully Google would go back to the cheaper, value for money, devices.

  • Silver

    I think the fault lies in fact that in the beginning everyone wanted this phone especially the 64 GB version. But the availability of such phone was never really there. Production of this phone was not able to keep up with the demand. Almost everyone I know who did order the phone had to wait a few weeks to get it, in some cases they just changed their mind and went with something totally different. I just could never get my hands into one and now that I can I probably won’t. Fail…

    • Todd

      Does google care? No. The fail is on you for thinking google cares about people that aren’t developing apps etc. Would also love to see what phone you end up with instead of a nexus 6.

  • Josh

    I love my n6, its flawless. No lag, great battery life with a few tweaks, and amazing screen. I’ve had it for over 6 months now and still not a single issue. All of my galaxies had lag and bugs, but not my n6. I’m def on the nexus train.

  • FILA

    To expensive and screen is to big. They depended on the large screen to be flagship that everyone would buy, but its not for everyone. And like others said prob a supply issue like every other nexus release

  • Tommy

    Usually a “phablet” size handset is counterpart to a “flagship”, right?
    HTC One/whatever their big phone is

    • FILA

      HTC Maxx, right, so you would think they would offer a newer Nexus 5 inch

  • Lance San Pedro

    In my opinion Nexuses are falling now because of the lack of availability in some countries like here in Philippines and the expensive pricing of the Nexus 6. If only they can have a cheap but high quality phone like the Nexus 5 and extend the availability then they will have better revenue.

    • Todd

      Won’t happen. You may not see the value on but it is 100% there. Sorry

  • Seuh

    I love my nexus, fast, good screen I gave away my iPad, reponsive great battery, frankly I don’t regret a bit owning, and with the specs it will last me for along time

  • jjordan

    I love the nexus 6. Coming from 2 big screen galaxy notes I knew what I was getting into. Stock android is beautiful with no lag or hiccups of any kind. I believe availability played a huge part in down sales for the nexus 6. I’m keeping this bad boy for a while

  • Jake

    It may be more expensive but overall the big price tag is more then worth it. If you compare specs with the Nexus 6 and its predecessors its hardware is way above what it was in the past. I switched from the Galaxy note 3 to the Nexus 6. The only thing I miss about the Note 3 is the stylist pen. I gave the Nexus 6 a 9 out of 10. The only improvement I would’ve liked is expandable memory.

  • Robert Hadley

    I wonder how much is Verizon refusing to offer, support or activate any nexus 6 phone until late last month… I have a nexus 6 and I am very happy with it.

    • EvenInTheDarkestHour

      Idk. Did they ever allow customers to activate Nexus 5 on their network?

      • Brian Koji Bjerke

        Nexus 5 didn’t have the technology (CDMA) to work on Verizon, which up until now was the only format to place calls on VZW, different story now that they use VoLTE. Verizon still doesn’t activate unlocked Nexus 6 devices, but you can still put an already active SIM in it. It is still very difficult to understand that though this is “technically” the most expensive nexus device, it is the first to be offered with on-contract pricing $200/2 years and on the major carriers…so in a way making it the cheapest…but I guess VZW, att(?) users have been left out of the bandwagon that they’re only focused on apple or Samsung devices?

        • Andrew

          Nexus 5 does have CDMA (remember it works on Sprint). It didn’t support the LTE network for Verizon. That and CDMA phones have to be white listed before they can be activated.

    • Chris May

      I’m on Verizon and bought my nexus 6 in Dec from moto and had no issues using it on Verizon.

      • Robert Hadley

        They told me the would absolutely not active a “non Verizon” phone, I understand some people did use their activated Sims but I did not want to make a 650 gamble

  • EvenInTheDarkestHour

    I’m so on the edge Nexus 6, iPhone 6 plus (I’m not into the Android v. IOS debate). Maybe wait for the LG G4, but chasing the “next best” leaves much to be desired…. Like a new device. I’ve had a Nexus 5 since it dropped, ready to upgrade. Any thoughts?

    • Todd

      Nexus 6. Cell reception, battery life, build quality are all top notch. Would love to see a benchmark of cell reception lol. This is literally the first nexus phone i have had where i can say i am truly happy with the battery life

  • nsuviolin

    Another big part of the problem could be that they produced the Nexus 6 devices so slowly that they couldn’t meet whatever demand that they had. I know several people cancelled their orders because they were in backorder for so long.

  • Andrew

    Google q4 2014, not enough Moto6 to supply demand
    Google q1 2015, nexus devices not selling well…

    No, this is all on the Nexus 9. Nexus 6 supply couldnt even keep up with demand.
    Why would they launch fi on a sole device no one wants?

  • Dyson

    The Nexus 6 is the best phone I have ever had. I think it’s funny how so many people hate on it because of its size. It’s not in any way too big. In fact, the design is such that it fits better in my one hand than my last phone by LG. The LG was smaller, but without the curved back it would slip right out of my hand like a wet bar of soap. I would have liked an IR blaster but I’ll survive without it. It did take forever to get one though. I ended up cancelling two orders before buying it thru T-Mo. I got the 64gb version for 699$ plus a 50$ bill credit because to make up for not being able to place the order on Black Friday when they were on sale. The fact that it’s the first phone EVER to work on all 4 US carriers and it doesn’t have TouchWiz or some other bloatdroid OEM garbage? Totally worth ever penny.

  • Todd

    This is a retarded article. Google doesn’t try to push nexus devices, other than there tablets maybe. They are made for developers and people like me who prefer vanilla android over the bloated, laggy mess that is the note 4

    • Stephen Yuen

      I literally say that in the second paragraph…

      • Todd

        Yes but the headline reads as though its some big surprise. Presumably to get more hits for this site but review titles like this are in part why people still think samsung devices are better than nexus’s. You then go on to say that they probably wouldn’t complain if they had sold more nexus 6’s and made some money from doing so. My question is since when did google rely on things like phone sales to make cash? Answer, never. Google doesn’t care about sales so reviewers like you should stop using it as a scapegoat to get site hits

        • Stephen Yuen

          Not everyone is as well versed in the machinations of Google and the smartphone industry as you and I, so I would say that it could be a surprise to some people. Furthermore, I don’t think there is a company on this planet that wouldn’t want to at least make some money from anything they put effort into developing. Whether or not it breaks even isn’t the point, but it can’t be a complete moot point to make money, otherwise wouldn’t they just give it out for free? And what benefit do we as an *Android* site have for making Google our scapegoat? Pretty sure you’re clutching at straws now.

        • Todd

          you don’t think motorola is making money on every N6 sold or what? Don’t you think the low supply at first was in part because the N6 wasn’t designed to be a big buck maker? You get the benefit of people coming which you can’t tell me doesn’t equate to advertising.

        • Stephen Yuen

          Again, I’m not denying Google’s strategy nor am I denying that the Nexus 6 is a very good device. Advertising is always a good side-effect, which is what most manufacturers have come to enjoy after making a Nexus device. The article above was written to point out what Google itself said. Nobody is saying that Google is going anywhere, or that Google doesn’t know how to make devices, only that the Nexus division hasn’t been making as much money with the Nexus 6 as it did with the Nexus 5 – those are the facts. *Why* that is the case is entirely secondary, and as you’ve repeatedly pointed out, Google probably doesn’t care anyway.

        • Todd

          That comment came out harsher than i wanted it to but my point still stands. Noninformed people take articles like this, without reading and use it as a tool to degrade an otherwise awesome phone.

        • Stephen Yuen

          I appreciate that, but the degradation was never intended to be of the phone itself, rather Google’s strategy. And whether it is success or not, and by what ruler, is for its investors to judge, not us. We’re just voicing our individual opinions after all.

        • Todd

          I doubt investors wait around for the nexus lineup to invest stock in whatever company is making it this time. Googles strategy is a success also because what good would they be doing by cutting into another companies sales of an android phone? Google makes money from advertisers so it doesn’t matter whether its samsung, htc etc. Any android phone makes them money and to try to undercut another company and possibly lose an android phone maker would simply be stupid on there part. Look at microsoft phones if you need a hint as to what i am talking about

  • Todd

    To everyone complaining its too expensive you need to understand it isn’t a cheap plastic build quality like all Samsung’s phones. Motorola typically has some of the best build quality along with (thank god) the best cell antennas. Comparing a note 4 my brother in law got on the same network my N6 is on, my N6 completely blows the note 4 away in terms of cell reception and speed

    • Stephen Yuen

      I think the issue is that it’s more expensive than the Nexus 5, rather than its more expensive than its competitors. It’s undeniable that the Nexus 6 is a good device. But when the Nexus 5 is perceived to be just as good (if only marginally less powerful and spec’ed out) and the Nexus 6 is costs almost twice as much, it becomes a really tough sell.

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  • _ _

    I walked into 2 carphone warehouse stores and neither have Nexus 6 in stock. Reason is they don’t sell as too expensive
    I have broken the cycle of flagship phones by buying a lumia 640 for calls, texts and emails and tethering a Tesco hudl2 to it if I want more screen size so lumia 640 £70 and hudl2 £129 saving £200 off list price of a nexus6