Discover the surprising difference between the manufacturing cost and retail price of the Google Pixel 9 Pro. Compared to the iPhone 16 Pro, the Pixel 9 Pro's production cost is significantly lower, yet its retail price remains high. Learn about the contributing factors, including component costs and import taxes in regions like India.
Google’s new flagship Pixel 9 models are costly to buy, almost matching what you pay for the iPhone 16 Pro models in some regions. With a launch price of Rs 1,09,999 in nations like India, the Pixel 9 Pro sets a new standard for companies like Google in the marketplace. However, what is the cost of manufacturing Google's new Pixel 9 phones?
Here are some intriguing findings from a recent study about the price of manufacturing phones compared to selling them to consumers. With a bill of materials (BOM) of $406 or around Rs 34,000, the Pixel 9 Pro is less expensive to produce than the iPhone 16 Pro, which costs Apple about $568 (approximately Rs 47,800) each unit.
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Starting price of Pixel series
The starting price of the Pixel and iPhone Pro models is the same at $999 (roughly Rs 83,000), which brings the focus back to how and why Google is charging so much for the final product in the market. Based on these figures, it is clear that Google is spending significantly less to make the Pixel 9 Pro model.
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Prices of parts of Google Pixel 9 Pro
The prices of the various parts utilized in the Pixel 9 Pro variant are also highlighted in the unconfirmed claim from Japan. It states that the Tensor G4 from Google costs $80 (about Rs 6,740), the Actua display costs $75 (roughly Rs 6,320), and the camera system costs $61 (roughly Rs 5,100). When you go through these numbers, one has to also account for the overall R&D and marketing expenses to the final price that is mentioned on the packaging of these devices, something that Apple also does with its iPhones.
Regarding the significant price differential for the Pixel 9 series in India, this is mostly due to local taxes and customs that Google must pay because it continues to import these devices into the nation.
For its locally produced iPhone 16 models, Apple has been able to absorb these taxes; in the upcoming quarters, the 16 Pro models will also gradually profit from local assembly. The Pixel 8 model marks the beginning of Google's made in India initiatives, and other models will probably be added soon.
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