Cost to Produce the Pixel 9 Pro

In a revealing report released on November 5, 2024, it has been estimated that Google incurs approximately $406 in material costs to produce the Pixel 9 Pro. This detail sheds light on the underlying cost structures associated with smartphone manufacturing and indicates a potential decrease in production costs compared to prior models.

Breakdown of Material Costs

The bill of materials (BOM) is essential in understanding smartphone pricing, but it doesn't encompass all expenses. The Pixel 9 Pro's BOM costs are reportedly lower this generation, with substantial contributions from key components. Notably, the report revealed that the Tensor G4 chipset contributes about $80, while the Samsung-manufactured M14 display panel costs around $75 and the camera components total approximately $61. Interestingly, while the chipset cost rose slightly, Google successfully reduced expenses related to the display and camera components compared to previous versions.

Comparison with Previous Generation

When looking at how this affects overall pricing, the Pixel 9 Pro's production costs are around 11% lower than those for the Pixel 8 Pro. However, it's important to note that this comparison is nuanced; the Pixel 9 Pro features a smaller display and battery than its predecessor, which may skew direct comparisons.

Industry Context

Additionally, insights from this report include a comparison to Apple’s iPhone 16 Pro, which is said to have a material cost of about $568. The costs for Apple components include $110 for the M14 display and $91 for camera components, with the A18 Pro chip carrying a price tag of $135. This situates Google competitively within the smartphone market but highlights the increasing costs associated with high-end tech components.

Full Cost Considerations

While the material cost of approximately $406 provides a glimpse into Google's expenses, it does not encapsulate the full financial picture. Many additional costs, such as distribution, marketing, and retail strategies, must be factored into the final retail price, which stands at $999 for the Pixel 9 Pro. This price also has to accommodate potential discounts and sales promotions, reflecting the complexities of pricing in the tech industry.

For more details, check out the original article from 9to5Google.