Manufacturing costs for Google Pixel XL are about the same as for Galaxy S7 Edge

Almost always, the cost to manufacture a product is significantly lower than its retail price and this is applicable to various goods, inclu...

Almost always, the cost to manufacture a product is significantly lower than its retail price and this is applicable to various goods, including smartphones. A report by IHS Markit reveals that the manufacturing cost for a Pixel XL smartphone is much lower than its retail price, and similar to that of other premium smartphones on the market.

The report mentions that Google spends about $278 to make a Pixel XL smartphone, but the total cost raises to about $285.75, after including basic manufacturing costs, like assembly, insertion and test costs.

Google sells the Pixel XL for an unsubsidized price of $769 and the cost-to-sales-price ratio seems to be in line with those of other high-end smartphones, including the iPhone 7 Plus or Galaxy S7 edge.

It costs about the same to make a Pixel XL as an iPhone 7 Plus
Costs included in the bill of materials (BOM) for a Pixel XL are the same as for other flagships because these phones use similar specs and supply base. The Pixel XL is marketed as a direct rival to Apple’s iPhones and Samsung Galaxy series, especially when it comes to the price of these devices.

Now that the Galaxy Note 7 has been discontinued, the Pixel XL will surely attract some of the customers that Samsung recently lost. However, the Pixel XL will be rivaling against Huawei and LG also.


Pixel XL offers the best-in class camera, as well as premium specs and a polished design that makes the smartphone worthy of a spot among the top-end smartphones out there. However, the high retail price has dissatisfied many fans of Google phones. Nexus line of smartphones was mainly designed for a lower price point.

Google took over hardware design and software integration in Pixel phones, as opposed to its previous line of smartphones, Nexus. The move is very similar to Apple’s strategy, meaning that the Pixel isn’t just competing against phones running Android, but also iOS.