Production Costs of the Pixel 9 Pro and iPhone 16 Pro Revealed

In mid-August 2024, Google introduced its new Pixel 9 models, aiming to impress users with a fresh design, enhanced artificial intelligence capabilities, and more powerful hardware. Similarly, Apple followed suit by launching the iPhone 16 series in early September 2024, marking a significant upgrade in their smartphone lineup.

Price Comparison: Pixel 9 Pro vs. iPhone 16 Pro

Both the Pixel 9 Pro and iPhone 16 Pro launched in the United States at a price point of $999. However, when examining the production costs, there is a noticeable disparity between these flagship devices. This difference can be particularly advantageous for Google and its Pixel enthusiasts who are willing to wait for price adjustments.

According to a report by the Japanese economic newspaper Nikkei, the material costs for the Pixel 9 Pro are approximately $406. In contrast, the production cost for a single iPhone 16 Pro stands at around $568, resulting in a difference of $160.

High Production Costs of Displays, Cameras, and Processors

The analysis reveals that the most expensive components in both devices are the displays, cameras, and processors. The M14 display used in the iPhone comes with a price tag of $110, while the camera components account for an additional $91. The A18 Pro chip is the priciest part, costing $135.

In comparison, Google pays $75 for the M14 display manufactured by Samsung, with camera modules costing $61. The Tensor G4 processor adds another $80 to the total, as reported by Winfuture.

Google’s Efficient Cost Management

Notably, Google has successfully managed to reduce production costs by approximately 11% compared to the previous Pixel 8 Pro model. Apple’s manufacturing costs for the iPhone 15 Pro were similarly high, reaching $558.

This higher profit margin allows Google to offer discounts more comfortably than Apple. For instance, customers with a Google One subscription can currently save up to $150. Additionally, the Play Points program enables discounts of up to 30%, making it an appealing option for bargain hunters.

Timing Your Smartphone Purchase

Apple is likely to be more conservative with discounts on the iPhone 16 Pro, which can be attributed to their lower profit margins. However, it may be wise to hold off on purchasing the top-tier model for a while. Historically, the iPhone models from 2023 saw price reductions of up to 20% just six months after their initial release.

When evaluating production costs, it’s crucial to remember that these figures only reflect raw material expenses. Additional costs for research and development, marketing, and logistics must also be considered.