Google Pixel XL (32GB) Costs Just $285 to Make, But is Priced at $769

Google Pixel XL

The Google Pixel and Pixel XL are the latest, hottest phones in town, however, some potential buyers have been put off with the asking price of the handsets, which is the opposite of what Google Nexus phones were known for – affordability.

The smaller Pixel starts at $649 while the larger Pixel XL has a price tag of $769 for the base model as well. But according to a new report, it appears that Google spent about $285.75 only when making the larger Google Pixel XL. This is the total cost of all the materials used to put together the phone, including the components as well as the cost of assembling.

This report comes from the Bill of Materials (BoM) experts based at HIS and it might leave some people wondering why Google would give itself such a huge profit margin for a phone is spent just under $300 to put together. As noted earlier, the same Google Pixel XL phone that Google used $285.75 to make has a price tag of $769, however, there are a few things you need to understand before creating any fuss about the seemingly hiked price.

Between the components and assembly costs, you also find things like software, R&D as well as marketing costs. We all know how much Google invested in marketing the new phones. However, the BoM does not include the costs for these programs, hence the huge difference. So, if software, R&D, and marketing costs are considered, it is easy to see why the Google Pixel XL has such a huge price tag.

Google Pixel XL

For comparison purposes, Samsung spent about $255 to put together the Galaxy S7 while it cost Apple about $225 to make the iPhone 7. Both phones have a smaller screen size and a smaller battery unit but are also priced slightly cheaper than the Pixel XL.

Apparently, the 5.5-inch AMOLED screen that is shielded by Corning’s Gorilla Glass 4 technology is the priciest component on the Google Pixel XL, valued at $58. The cameras are priced at $17.50 while the battery, which is made by LG Chem, is valued at $4.

You can check more details from this HIS report.

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