Continuing from the iPhone 7 cost analysis, here’s a breakdown of how much each unit of Google Pixel XL costs to manufacture. It turns out, the phone is more expensive to build than both of its biggest rivals, namely, the iPhone 7 and Galaxy S7. It costs Google a hefty $285.75 per unit.
The report comes courtesy of the team at IHS Markit. If the figure is accurate, each Pixel XL unit nets in $485 in revenue, considering it is priced at $769. Again, it is worth noting that the costs don’t include advertisement, distribution, packaging, R&D, software and other costs necessary to complete the sale. Nonetheless, it is still a method which can be used to assess the money that goes into developing a phone.
Expenses in Detail
As expected, the biggest expense comes from of the display assembly, a 5.5-inch QHD Samsung panel with a Gorilla Glass 4 coating on top, which costs $58 per piece. Next in line is the chipset, a Qualcomm Snapdragon 821, which costs $50. Qualcomm sure does charge a premium for its chips despite having lost major market share with its 810.
The chassis is said to bill in at $35, while the Sony camera costs $17.50. The radio frequency bands cost $19.50, while the storage-RAM combo costs $26.50. The battery is one of the cheaper ones and costs $4 while the other items bill in at $10. Audio parts cost $15.5 while power management tools come in at $11.
Compared to this, the iPhone costs Apple $225 to make, while the Galaxy S7 stands a bit higher at $255. With a more premium build for its phone, now Google needs to make sure it brings its flagships to as many people as possible and become a global phone OEM if it really wants to take on the likes of Samsung and Apple.