For those who aren’t tired of seeing component breakdowns from IHS, here is another one, this time, IHS broke down Google’s Pixel devices.
According to the report, the Google Pixel XL costs about as much as an iPhone 7 Plus or a Samsung Galaxy S7 Edge to manufacture. The analyst firm took apart a 32GB Pixel XL and discovered that the total cost to make the 32GB Pixel XL is $285.75
Considering that Google sells a 32GB Pixel XL for $769, it’d be easy to say that Google is making a lot of money from each device it sells, but we can’t be entirely sure how accurate the math behind the IHS calculation is, plus Google is spending A LOT on advertisements.
Whichever way you look at it, manufacturing a phone doesn’t cost that much, which is why phone manufacturers like Xiaomi and Infinix can still sell cheap phones and make a profit.