Media playback is unsupported on your device

Google 'needs more revenue' from phone products

17 April 2014 Last updated at 11:01 BST

Google is failing to meet expectations as it is unable to create enough revenue through its phone products, technology analyst Larry Magid has said.

Shares in Google have dropped 5% despite the technology giant reporting a first-quarter profit rise of 3%.

Profits were $3.45bn (£2.05bn), but Google continues to struggle with its ability to charge advertisers higher prices for mobile ads.

Mr Magid told the Today programme that although Google is "diversifying" its business, citing its development of wearable technology Google Glass, such products must become more "profitable".

First broadcast on BBC Radio 4's Today programme on Thursday 17 April.

Copyright © 2015 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.