Ever wondered what it really costs to build a flagship phone? Well, now, we can get a look at the production expenses behind two heavy hitters – the Pixel 9 Pro and iPhone 16 Pro – both priced at around $1,000.
The Pixel 9 Pro could be way cheaper to build than the iPhone 16 Pro
A new report out of Japan (subscription required) suggests that the Google Pixel 9 Pro is much cheaper to produce than the iPhone 16 Pro. The report breaks down the bill of materials (BOM) for both phones, which essentially tells us how much the components that make up the devices cost. However, it's worth noting that this doesn't include expenses for research, development, or marketing.
So, if this report holds up, it seems the Google Pixel 9 Pro is way cheaper to produce in terms of parts compared to the iPhone 16 Pro. The Pixel's BOM comes in at $406, while the iPhone's is reportedly $568.
The Pixel 9 Pro's component cost is said to be 11% lower than the Pixel 8 Pro's. However, it's worth mentioning that this might not be a fair comparison since the Pixel 9 Pro is technically a new model in the series. A better comparison would be between the Pixel 9 Pro XL and the Pixel 8 Pro, as the 9 Pro XL is the real successor to the 8 Pro.
On the other hand, the cost of components for the iPhone 16 Pro has apparently gone up by 6% compared to the previous model. The M14 display is said to be one of the most expensive parts, coming in at $110, while the camera components are estimated at around $91. The A18 Pro chip is reportedly priced at $135.
It looks like Apple's A18 Pro chip is way more expensive than Google's Tensor G4. | Image credit – PhoneArena
The cost of the Pixel 9 Pro is broken down into $80 for the Tensor G4 chipset, $75 for the Samsung-made M14 display, and $61 for the camera components.
Of course, as I mentioned earlier, these rumored BOM costs only cover a small part of what it actually takes to get a smartphone to market. Other expenses, like research and development, marketing, shipping, and distribution, also play a major role in determining the final retail price.
Now, I know both the Pixel 9 Pro and iPhone 16 Pro are priced at $999, though the former is said to cost less to produce, which might raise some eyebrows. However, Google often offers discounts on the Pixel 9 Pro, like up to $150 off for Google One members or 30% off for Play Points members, and maybe those lower production costs could be the reason behind such deals. Meanwhile, Apple rarely offers promotions for the iPhone 16 Pro.
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Tsveta, a passionate technology enthusiast and accomplished playwright, combines her love for mobile technologies and writing to explore and reveal the transformative power of tech. From being an early follower of PhoneArena to relying exclusively on her smartphone for photography, she embraces the immense capabilities of compact devices in our daily lives. With a Journalism degree and an explorative spirit, Tsveta not only provides expert insights into the world of gadgets and smartphones but also shares a unique perspective shaped by her diverse interests in travel, culture, and visual storytelling.
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