Wave7 Research has published a paper explaining that a supply shortage of premium, large-display smartphones is hurting American sales and this could impact throughout the whole fourth quarter. The paper is discussing the Apple iPhone 7 plus and the Google Pixel XL, where in both cases the devices have and are proving difficult to get hold of. In Apple's case, the business has shown itself to be a master of containing the supply of the new iPhone in such measure so as to keep the device a realistic purchase for customers but to limit stocks. To date, Apple has managed to get sufficient devices to customers in order to satisfy demand. In the case of Google, here is appears that the Google Pixel and Google Pixel XL have been stronger sellers than the business and its American carrier, Verizon Wireless, hoped for. Google has and continues to support the Google Pixel family of devices with a strong marketing presence. Verizon's marketing department have labelled the device their exclusive despite it being available on the Google Play Store and being compatible with all major US carriers: something that both AT&T and T-Mobile US are aware on and have released their own special offers for the Google Pixel, with T-Mobile US offering a $325 rebate for customers activating this device on their network.
There is another factor in the market or to be more accurate, not in the market, in the shape of the Samsung Galaxy Note 7. The Galaxy Note 7 was originally on sale in the third quarter but after two recalls because of a battery fault, Samsung removed the device from sale. This has left a gap in the market that is being filled by the Apple iPhone 7 plus and the Google Pixel XL, fueled by heavy marketing. For Verizon Wireless, America's largest carrier struggled in recent months and reporting a drop in subscribers for the third quarter, 2016. Industry competitors, especially T-Mobile US, are aggressively marketing against Verizon Wireless but the carrier is not taking things lightly. Its exclusive arrangement with Google for the new devices is highlighted by the company switching most of its advertising budget to promoting the Google Pixel device family. However, Wave7 reports that Verizon Wireless' efforts are being hurt by "severely poor" supplies of the 128 GB Google Pixel smartphone models.
Google needs to rectify the supply problems of the Google Pixel devices in order to effectively compete with the Apple iPhone, but so far the signals are that the Google Pixel family is enjoying a successful device launch. It may be that Samsung's exploding battery issues is not what will ultimately kill the Galaxy Note line, but a combination of this and competitors muscling in on the large screen space instead.