Description: The television commercial for the new Google Pixel 2 phone shows a woman taking a bite out of an apple, and indeed, that not so subtle clue shows us some of what Google is up to. By launching a new phone ahead of Apple’s iPhone X, as well as two new digital assistants, the Home Mini and the Home Max, Google is battling both Amazon and Apple in the ongoing tech wars. Reviewers seem to like the Pixel Two. And if you want it, you better like it too, with prices starting at $899.
Date: October 3, 2017
1) Have you or any of your friends tried the Pixel 2?
2) Chapter 5 of Wiley’s Financial Accounting: Tools for Business Decision-Making speaks of how Apple increased the gross margin on the iPhone SE. See if you can find this example and discuss with your classmates what might be some other impacts on the gross margin.
3) What gross margin do you think Google might be earning on the Pixel 2?