According to a new report from IHS Markit, the Google Pixel XL costs about as much as an iPhone 7 Plus or a Samsung Galaxy S7 Edge to manufacture. The total bill of materials for the new 5.5″ device with 32GB of flash memory rounds out to $278. Throw in an additional $7.75 in manufacturing costs and it costs Google $285.75 to crank out each Pixel device.
The unsubsidized price of the device is $769, which IHS Market says puts the Pixel XL’s manufacturing cost-to-sales-price ratio in the same range as the iPhone 7 Plus and the Samsung Galaxy S7 Edge. Andrew Rassweiler, a senior director at IHS Markit, says this is to be expected since the internals of the phones don’t change much regardless of what brand they are.
“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 launch price for the Pixel series has been a sticking point for some die-hard Nexus fans who enjoyed Google’s effort to keep Nexus devices toward the low-end of the cost spectrum.