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Google Pixel 9 Pro is costly to buy but the company spends a fraction of that to make the phone. Here’s the reason.
The Pixel 9 pro costs well over a lakh to the buyer but how much does Google spend?
Google’s new flagship Pixel 9 models are costly to buy, almost matching what you pay for the iPhone 16 Pro models in some regions. In countries like India, the Pixel 9 Pro has launched for Rs 1,09,999 which is a new level for brands like Google in the market. But how much does Google spend to make its new Pixel 9 phones?
A new report sheds some interesting details on the cost of making a phone vis-a-vis selling them to the consumer and here’s what it tells us. The Pixel 9 Pro bill of materials or BOM comes to $406 or Rs 34,000 approx, which makes it cheaper to make than the iPhone 16 Pro, for which Apple spends around $568 (Rs 47,800 approx) to make one unit.
What It Costs Google
Going by these figures, it is obvious that Google is spending far less to make the Pixel 9 Pro model, however, the starting price of the both Pixel and iPhone Pro models are the same $999 (Rs 83,000 approx), which puts the focus back on how and why Google is charging so much for the end product in the market.
The unverified report coming from Japan also highlights the costs of the different components used in the Pixel 9 Pro model. It says Google’s Tensor G4 costs $80 (Rs 6,740 approx), the Actua display comes to $75 (Rs 6,320 approx) and the camera system comes for $61 (Rs 5,100 approx). When you go through these numbers, one has to also account for the overall R&D and marketing expenses to the final price that is mentioned on the packaging of these devices, something that Apple also does with its iPhones.
The Tax Dilemma
Talking about the huge price difference for the Pixel 9 series in India, that is mostly got to do with the local customs and taxes that Google has to incur as it still imports these devices into the country.
Apple has been able to absorb these taxes for its locally made iPhone 16 models, while the 16 Pro versions will gradually also see the benefits of local assembling in the next few quarters. Google has started its make in India plans with the Pixel 8 model and others are likely to be integrated into the system in the near future.