The more I think about Pixel 4a 5G and Pixel 5, the more strongly I feel this is Google caving to carriers. Carriers don't want an iPhone alternative, they have plenty from Samsung. Carriers want lower cost 5G entry points, and Google is eagerly filling this void.

Remember, carriers don't care terribly *too* much about handset profits. Phonemakers do. Carriers want to trickle down 5G ASAP to transition their networks, and the best way to do that is to lower handset pricing barriers.

Things like DSS low band 5G are, at best, triage solutions to the 5G migration of the next few years. They are imperfect. The sooner carriers can wean customers off 4G and make most of their networks 5G SA, the less messy this transition period becomes.

But phone OEMs are incentivized to keep 5G at the most profitable end of the portfolio for now. New tech means early adopters, and that's an opportunity to up your margins with higher prices, at least temporarily. We've seen that play out with Samsung very clearly.

Google sees itself getting in on the ground floor of a new segment: mid-range to upper mid-range 5G. But this is still premised on the idea Americans:

-Want 5G phones
-Will buy $500-700 handsets

Neither of these things have proven significant sales factors in the US to date!

It's possible the current economic situation will make people take a much closer look at their monthly phone premium. But I think that for many, that just means not upgrading at all, not doing cost:benefit on a mid-range 5G phone versus a premium one.

Anyway I think this all in part explains why we had signals that Google's deal with Verizon was over. Pixel 4 was a massive sales disappoinment, and my bet is that Google had to come to Verizon with a completely new plan before they'd agree to renew the deal. It does make sense.