A new report by Nikkei has revealed that the production cost of Google's Pixel 9 Pro is around $406. This marks a decrease of about 11 percent compared to the Pixel 8 Pro. However, it's important to keep in mind that these two devices are not exactly the same size, which complicates the cost comparison somewhat.
Cost Breakdown of Pixel 9 Pro
Looking at the costs in detail, the most expensive part of the Pixel 9 Pro is the Tensor G4 chip, which costs $80. Following that is the Samsung M14 display, contributing an additional $75 to the total. The camera components account for $61 of the overall cost. The lower manufacturing expense can be partly attributed to the Pixel 9 Pro’s smaller design compared to the Pixel 8 Pro, allowing for a more compact screen and battery.
Comparison with iPhone 16 Pro
On the other hand, Apple’s iPhone 16 Pro is more expensive to manufacture, with costs reaching $568. This is a 6 percent increase from the last model. The A18 Pro chip comes in at $135, while the M14 display and camera parts add $110 and $91, respectively.
Despite the higher production costs, both the iPhone 16 Pro and Pixel 9 Pro are available at the same retail price of $999. The contrast in manufacturing expenses suggests that the two companies have different profit margins. It's also essential to remember that these figures do not include other significant expenses like research and development, marketing, and distribution.
Google's Strategy
With the Pixel 9 Pro's lower manufacturing costs, it appears that Google is focusing on enhancing production efficiency to maintain competitive pricing in the premium market segment.
