Notification Center

This is our new notification center. Inside, you will find updates on the most important things happening right now.


Hmm, push notifications seem to be disabled in your browser. You can enable them from the 'Settings' icon in the URL bar of your browser.

Google Pixel XL manufacturing cost on par with that of iPhone 7 Plus, Galaxy S7 edge


The manufacturing cost of the Google Pixel XL is on par with that of the iPhone 7 Plus and Samsung Galaxy S7 edge, according to UK-based research company IHS Markit, which is not all that surprising. From the get go, Google priced the Pixel to directly compete with the iPhone and high-end Android flagships, ditching the somewhat mid-range pricing model it employed for Nexus devices.

According to a preliminary teardown estimate from IHS Markit, the bill of materials (BOM) cost for the 32 GB Pixel XL comes to $285.75. Since the 5.5-inch Pixel starts from $769, at first glance it may seem as though Google is pulling some $484 in clean profits from the phone. However, to its $285 BOM estimate, we have to add R&D costs, marketing costs, as well as various administrative expenses, in order to arrive at a Google's true profit from the Pixel XL. Despite the unknowns in the equation, IHS notes that the direct manufacturing cost-to-sales-price ratio of the phone is completely in line with those of direct competitors, such as the iPhone 7 Plus and the Galaxy S7 Edge.

Contrary to many preliminary predictions, the Pixel and Pixel XL, which are the first phones to carry the company's brand name, are rivaling high-end products by Google's own Android ecosystem partners. In that sense, the new Pixel lineup of smartphones is a departure from the Nexus brand, as Google is now employing a strategy of vertical integration of hardware and software, similarly to Apple.

Read more:

New reasons to get excited every week

Get the most important news, reviews and deals in mobile tech delivered straight to your inbox

FCC OKs Cingular\'s purchase of AT&T Wireless