How much does Google Pixel XL Cost to Manufacture
1500
views
Google has officially unveiled the Pixel and Pixel XL on October 04. Pixels have received positive response from critics and saw some huge sales. Unlike Nexus series, this time Google has launched smartphone with its own name and solely promoting the Pixel devices. Recently IHS Markit, a world leader in critical information, analytics and solutions, has analyzed the actual cost to manufacture a Pixel phone. Unsurprisingly, the cost to manufacture a Pixel phone is closely matches to its rival flagship devices out there i.e. Galaxy S7 Edge, iPhone 7 Plus etc.
Cost of Pixel XL:
IHS has teardown the actual manufacturing cost of Pixel XL with 32 GB of internal storage. According to preliminary estimates, the total bill of materials (BOM) cost of a single Pixel XL unit is $278. Add $7.75 in terms of basic manufacturing cost for each unit. Which means the total cost to manufacture a Google Pixel XL (32 GB ROM) is $285.75. This manufacturing cost is quite parallel to the cost of other high end smartphones.
“Total BOM costs for the Google Pixel XL are, not surprisingly, in line with those of other competitors, because the supply base and specs are very similar from phone to phone—whether it’s an iPhone, a Galaxy-series phone or the Google Pixel XL,”
said Andrew Rassweiler, senior director of cost benchmarking services for IHS Markit.
Google Pixel XL (32 GB storage) is priced $769, means Google’s income per unit is $483.25. Like Samsung and Apple, Google is also earning an attractive amount of profit per unit. Obviously the other costs e.g. Distribution, Research and Development, advertising cost will increase the total cost of a unit. But still Google will be enjoying handsome profits from a Pixel unit.
Teardown Cost of Different Components:
The most expensive component of Google Pixel XL is the Samsung-built 5.5-inch QHD AMOLED display that costs $58 a pop. The Qualcomm Snapdragon 821 processor is the next most expensive component costing $50. Pixel XL camera has been given the best rating on DxOMark, is not much expensive. You can view complete details of other components in below image.
