Alphabet, the parent company of Google, is undoubtedly one of the largest companies in the world. The company has been focusing on a wide range of business sectors to get profit. Last month, Alphabet was hit with a record-breaking €2.42bn fine by the European Commission over abuse of its search engine results.
However, it seems that the company still gets more profit than expected despite the huge $2.74 billion fine. Alphabet has recently announced its earnings report for the second quarter of the year. Specifically, the company posted revenue of $26.01 billion in Q2/2017. Tech analysts say that this comes as no surprise, as the company is doing pretty well in advertisement businesses.
According to the earnings report, Google, Android, and YouTube businesses account for up to $22.7 billion of total revenue in the second quarter of the year. Sources say that Alphabet’s Pixel smartphones and Google Home have also made a contribution to the company’s growth in revenue in Q2/2017.
However, the company saw a slight drop in operating income, mainly because of the huge fine. In the second quarter of the year, Alphabet reported $4.1 billion in operating income, a 2 billion drop compared to the $6.8 billion mark in Q1/2017.
Tech analysts say that Alphabet will retain its focus on advertisements to get more profit for the next quarter of the year. Last year, the release of Google Pixel and Pixel XL smartphones mark the company’s first move into hardware market. The company is expected to announce the second generation Google Pixel later this year following the huge success of the original models.
The next generation Google Pixel is rumored to come with a premium design and compelling features, including a bigger screen, dual stereo speakers, and an excellent camera. According to some recent reports, the Google Pixel 2 will be the first smartphone to feature Qualcomm’s Snapdragon 836 on the market. The new handset will likely make its debut this fall and launch later this year.
Got any questions? Let us know in the comments below.