GOOGLE'S PARENT COMPANY Alphabet has missed financial targets for the first quarter and it appears that it could be down to disappointing sales for the Pixel range of hardware.
The tally for Q1 was $36.3bn (about £28bn) in revenue, which falls slightly below expectations of $37.33bn. Alphabet's operating profit stands at $6.6bn, a drop from $7.6bn year on year, while growth dipped to 17 per cent from 26 per cent.
Now let's not lose sight of the fact that we're talking about a heck of a lot of money whatever way you look at it, but in a world that's dictated by growth, the news isn't great for the digital behemoth, which saw shares drop seven per cent in after-hours trading.
Given the number of fingers-in-pies that Alphabet has, it's slightly chilling that 84.5 per cent of Alphabet's revenue is coming from its click ads business, and that's dropped in growth from 59 per cent to 39 per cent. Make no mistake - Alphabet is an ad sales platform that does some tech.
Then there's the recent EU fines that run into billions of Euros, and the subsequent set-up costs of facilities to mitigate the criticisms. That's going to have been a big drain on the Google Wallet.
The other big hole comes from the Pixel range which has dropped in sales year-on-year despite the launch of the Pixel 3 and 3XL last October.
The company claims it's down to "pressures in the premium smartphone market". That's not helped by Google's previous business model which made Pixel devices amongst the most expensive in the market.
That is likely to have put people off fairly spectacularly, as well as the misconception that less-is-less - despite having one of the best cameras on the market, it's a single lens, and that is being interpreted as "inferior" especially at those premium prices.
Add to that the niche appeal of the Pixel Slate and Pixelbook, both priced like they run Windows when they don't, and you start to see the extent of the problem.
Fortunately, Google seems aware of its shortcomings and looks set to finally announce a cheaper handset range - the Pixel 3a and 3aXL in the coming weeks. μ
And it'll even undo the damage
Affected employees have 60 days to find a new home at the company
Doesn't inspire confidence in HongMeng's appeal
But don't get too excited if you've already got one