Google 'needs more revenue' from phone products

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.