In mid-August 2024, Google unveiled its latest Pixel 9 models, boasting a fresh design, enhanced artificial intelligence capabilities, and upgraded hardware. Apple followed suit in early September 2024 with the launch of its iPhone 16 lineup, featuring similar advancements.
Comparing the Costs: Pixel 9 Pro vs. iPhone 16 Pro
Both the Pixel 9 Pro and iPhone 16 Pro hit the US market with a price tag of $999. However, the production costs for these flagship devices reveal a stark contrast. This difference is particularly advantageous for Google and those who are willing to wait for the right moment to purchase.
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According to a report by the Japanese economic news outlet Nikkei, the material costs for the Pixel 9 Pro are approximately $406. In contrast, manufacturing a single iPhone 16 Pro incurs costs of around $568, which is $160 more than its Google counterpart.
Expensive Components: Displays, Cameras, and Processors
The analysis highlights that displays, cameras, and processors are the most expensive components in both devices. The M14 display used in the iPhone carries a hefty price of $110, with camera components costing $91. The most costly element is the A18 Pro chip, which adds $135 to the production expenses.
For a direct comparison, Google pays about $75 for the M14 display supplied by Samsung. Their camera modules cost $61, and the Tensor G4 processor adds another $80, as reported by Winfuture.
Google’s Ability to Reduce Costs
Google has successfully managed to decrease production costs by roughly 11% compared to the previous model, the Pixel 8 Pro. On the other hand, Apple faced similar high manufacturing costs with the iPhone 15 Pro, which stood at $558.
This comparatively higher margin for Google means that the company can more easily offer discounts. For instance, subscribers to Google One can currently enjoy savings of up to $150. Additionally, the Play Points program offers discounts of up to 30%.
Is It Worth the Wait? Timing Your Smartphone Purchase
Apple is generally more cautious with discounts on the iPhone 16 Pro, largely due to its lower margin. However, waiting to purchase the top-tier model can be beneficial. For instance, buyers of the 2023 iPhone generation found that devices were available for up to 20% less six months post-launch.
When evaluating manufacturing costs, it’s essential to remember that these figures only represent the raw material expenses. Additional expenditures for research and development, marketing, and logistics are not included in this analysis.
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