The Google Pixel smartphones – unlike Nexus phones – are priced pretty steep, especially for Android devices. Now, thanks to a new report from IHS Markit, we now know how much it costs to produce the 32GB variant of the Pixel XL. According to the report, the Pixel XL costs less than half of its asking price to manufacture.
According to IHS Markit, the 32GB variant of the Pixel XL’s bill of materials come up to $278 (about RM1,155); with the inclusion of basic manufacturing costs, the grand total is…$285.75, which is approximately RM1,185. In comparison, this particular variant of the Pixel XL goes for $769 (around RM3,190) in the US.
While the difference between the actual manufacturing cost and retail price of the 32GB Pixel XL is quite big, it’s worth noting that the cost of R&D, marketing, and other costs are not taken into account here. IHS Markit also noted that the Pixel XL’s “direct manufacturing cost-to-sales-price ratio is in line with those of direct competitors in the smartphone market.” These include the iPhone 7 Plus and the Samsung Galaxy S7 edge.
Despite the high asking price of the Pixel XL, it appears consumers are still eager to get their hands on Google’s very first smartphone. After all, the company is currently struggling to meet demand for the Pixel phones.
(Source: IHS Markit; Featured Image: iFixit)