Google is still cleaning the egg of their face from yesterday, and it looks like their situation is going to get a little worse. One analyst with Piper Jaffrey has pulled an interesting datum out of the data which was inadvertently released yesterday.
According to Gene Munster,Google's spreadsheets included a line for other income. While the exact types of income aren't defined, Munster believes that the difference between this year's report and last year's might hold some clues as to the number of Nexus 7 tablets sold.
Google’s “other income” revenue is listed as $666 million, which is up significantly from last year's $385 million. Munster believes that because this number includes the sales of Nexus 7 tablets. He could be right, and if he is then the $281 million would suggest that Google sold around a million Nexus 7.
That is an awfully wild-assed-guess, isn't it? Not only is it based on less than specific data, we don't even know how Google accounts for Nexus 7 sales in their bottom line. I would almost hesitate to make this claim, but this bit of gossip is too juicy to let go by without comment.
And yes, it is gossip. It is in reality little more than a rumor, and the only thing keeping it out of that gutter is that someone's name is attached.
So do you believe it is true?
I'm not sure, but if it is then I would describe the Nexus 7 as a failure. This most recent report includes the quarter which ends 30 September. If Google only sold a million Nexus 7 tablets starting in July and extending through the back to school period then sales were at best lackluster.
I wouldn't make that claim had we talked about the 1st or 2nd quarter, but this was one of the prime gadget buying periods of the year. If Google cannot get people interested enough to move more than a million units then I don't know another way to describe the sales.