The tech company is scheduling to make less than a million Pixel 5 mobiles in 2020. This is the main aim for google to reduce the production of the new pixel 5. With new pixel 5, pixel 4A (5G) was also launched alongside it and pixel 4A was introduced a few months before. The starting production for all the 3 models was set at 3 million units. The reason for this is that earlier the company’s sales for the handsets fell below what the company had targeted and also due to the pandemic, the company is not expecting a good sale therefore this step is taken.
As per the reports, the production for pixel 5 is set to be only 800,000 units. The company has also given a forecast for pixel 5 as earlier pixel 4 did not sell well in 2019. Plus, the demand in the market has been affected greatly by the COVID-19 pandemic.
That being so, the production of the new phone is going to be subjected to how the market reacts once the phones are launched.
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The previous year, the company shipped 7.2 million of Pixel mobiles and it expected the sales to be at least between 8 to 10 million units. In the 2020’s starting 6 months, the company shipped only 1.5 million mobiles which is a huge drop in the sales as in the beginning the company sold around 4.1 million units of the mobiles.
Also, as per the sources; the company’s plan suffered even more due to the pandemic and it caused a delay in the pixel 4a production. Even though lower-priced models such as Pixel 4a have small margins which can strengthen the shipment volumes.
The company’s sales were affected in Vietnam, where the company was planning to launch 4a and 5 people who are aware of the matter has said that 4a’s production has entered the country while 5 is still being produced Shenzhen, China.