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Google Pixel XL 32GB variant costs $285 to manufacture: IHS Markit

Google Pixel XL was launched earlier this month with the base 32GB model priced at $769. The IHS Markit teardown reveals that its manufacturing cost is not more than $285.

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Google launched its first smartphones – Pixel and Pixel XL earlier this month. Carrying a tagline ‘Made by Google,’ both smartphones are placed in the premium category and directly compete with the iPhone 7 and iPhone 7 Plus. The Google Pixel starts at $649 in the US (which is Rs 43,400 approximately) and the Google Pixel XL starts at $769 (Rs 51,400 approximately). As for India pricing, the Pixel starts at Rs 57,000, whereas the Pixel XL starts at Rs 67,000. As customary, IHS Markit’s latest teardown report on the Google Pixel XL 32GB variant shows that it only costs $285 to manufacture, which is approximately Rs 19,100.

Since the Pixel XL smartphone stands at the high-end segment, the cost of manufacturing is in line with the market price of the smartphone which is $769. The stark difference between the manufacturing cost and the market price of the Pixel XL smartphone clearly shows that Google stands at gaining huge profit from the smartphone, but that cannot be confirmed, as the other costs like R&D and marketing are not included.

Andrew Rassweiler, senior director of cost benchmarking services for IHS says, “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.” The Pixel smartphones have already been touted as a clear competition to Apple’s iPhone 7 and iPhone 7 Plus and also to existing Samsung premium smartphones. He also agrees with this universal statement saying, “The Pixel clearly targets the same top-end flagship space occupied by the Apple iPhone and top-end Samsung Galaxy lines, with retail pricing points that directly compete with these products.” IHS Markit also believes that the fall down of Samsung’s Galaxy Note 7 can be advantageous for Google.

The teardown shows that the most expenses were made on the display and the processor of the Google Pixel XL. The smartphone is powered by Qualcomm’s Snapdragon 821 quad-core processor clocked at 2.15GHz, and it costs $50. As for its display, the Google Pixel XL features a 5.5-inch QHD AMOLED display with 2.5D Corning Gorilla Glass 4 protection, and its cost comes to $58. In the photography department, the Google Pixel XL sports a 12-megapixel rear camera with f/2.0 aperture, LED flash, PDAF and laser auto-focus. Up front, it sports an 8-megapixel selfie camera with f/2.4 aperture with fixed focus. The cost of the cameras on the Pixel XL smartphone comes to $17.50.

The Pixel XL uses a 3,450mAh battery which costs $4. The total manufacturing cost of its aluminum plus plastic body along with the Corning Gorilla Glass 4 comes down to $35. The 32GB onboard storage and RAM of 4GB costs $26.50 for the Pixel XL. The manufacturing cost of antennas, connectors, microphones, speakers, etc, comes to a total of $24. As for the audio codec, amplifier and the different sensors including the fingerprint sensor, the cost of manufacturing results to $15.50. ALSO READ: Google Pixel smartphones are not waterproof because Google ‘ran out of time’

It is already known that Google is following Apple’s rulebook by taking control over both the hardware and software part of the Pixel smartphones. Google has also adopted Samsung’s AMOLED display technology and used battery by LG, which is ironical as the Pixel smartphones have created a tough competition atmosphere for its Android counterparts. Not only are the Pixel smartphones competing against Apple’s iPhone but also other Android smartphones.

Google’s Pixel smartphones have already made their way to India and the smartphones start at a price of Rs 57,000. The Google Pixel and Pixel XL come in two variants of 32GB and 128GB storage options. Both the Pixel and Pixel XL smartphone have the same specifications and features except for the display size, resolution and battery capacity. The Pixel sports a 5-inch full HD display and 2,770mAh battery, whereas the Pixel XL comes with a 5.5-inch QHD display and is armed with a 3,450mAh battery. ALSO READ: Google Pixel XL teardown reveals it is not as easy as the Apple iPhone 7 Plus to repair

  • Published Date: October 26, 2016 2:10 PM IST


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