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Google reveals "decline in Nexus" revenues last quarter

Android continues to go from strength to strength, with a seemingly endless stream of products - from tablets and phones, to TVs, wearables, in-car media systems, and plenty more - continuing to roll out. But the jewel in the Android crown is the Nexus range - Google's showcase devices for the platform, which are meant to represent Android at its very best.

Indeed, there are plenty of people out there who view Nexus devices as the best in the business, enticed by the promise of impressive hardware running the latest Android OS releases, unencumbered by the burdens of third-party interfaces and bloatware. But it seems that Nexus may be losing some of its appeal, as Google has revealed that its latest financial results were affected by a "decline" in sales revenues from these devices.

Google reports earnings for its Play Store (for apps and other digital content) and its new Google Store (for hardware) into an "other revenues" entry as part of its quarterly financial results, which also includes - among other things - sales of its Nexus line. As Android Central reports, the firm's chief financial officer Patrick Pichette explained:

Other revenues grew 23 percent year-over-year to $1.8 billion, and was down 2 percent quarter-over-quarter, driven really by year-over-year growth in the Play Store, offset by decline in Nexus, and the [previously-stated] FX impact.

The "FX impact" which Pichette mentioned refers to the effect of foreign currency exchange fluctuations on the company's earnings, which has also affected other multinationals, including Microsoft, which reported its own quarterly results yesterday.

But the "decline in Nexus" is particularly interesting, given that the company completely overhauled its Nexus range just a few months ago. It ditched the popular Nexus 5 smartphone and the brilliant (and very affordable) Nexus 7 tablet, pushing the range upmarket with new, more premium devices.

While the Nexus 5 was priced at $349, its replacement, the Motorola-built Nexus 6, costs $649 off-contract; and the $229 Nexus 7 made way for HTC's $399 Nexus 9 tablet. Google also introduced the Nexus Player - an Android TV media box - to its range, priced at a much more affordable $99.

But whether as a result of higher pricing, the larger sizes of the new phone and tablet, or the launch of more desirable products from other manufacturers, it seems that buyers just haven't warmed to the latest generation of Nexus devices.

Source: Android Central

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