Have you ever wondered how much Google and Apple spend on the hardware of their flagship smartphones? A new report by Nikkei reveals the manufacturing costs of the latest Pixel 9 Pro and iPhone 16 Pro models.
Over the past few years, flagship phones from Google and Apple have become increasingly expensive, with prices reaching ₹1 lakh and beyond for premium variants. While these companies attribute the price hikes to inflation and the rising cost of advanced chips, Nikkei’s report sheds light on the actual manufacturing costs, revealing a significant gap between production costs and retail prices.
Manufacturing Costs of Pixel 9 Pro and iPhone 16 Pro
According to Nikkei, the Bill of Materials (BOM)—which estimates the cost of components—shows that the Pixel 9 Pro costs around $406 (approx. ₹34,210) to produce, while the iPhone 16 Pro costs $568 (approx. ₹47,860).
Comparison: Pixel 9 Pro vs. Pixel 8 Pro
The report highlights that the BOM for the Pixel 9 Pro is 11% lower than that of its predecessor, the Pixel 8 Pro, despite both being flagship devices. The cost difference is attributed to the Pixel 9 Pro having a smaller screen and battery compared to the Pixel 8 Pro.
Breakdown of Pixel 9 Pro Component Costs:
- Tensor G4 chip: $80 (₹6,800)
- Samsung M14 display: $75 (₹6,300)
- Samsung camera: $61 (₹5,100)
Comparison: iPhone 16 Pro vs. iPhone 15 Pro
In contrast, the iPhone 16 Pro’s BOM is approximately 6% higher than that of the iPhone 15 Pro. This increase reflects Apple’s investment in more advanced technology and premium components.
Breakdown of iPhone 16 Pro Component Costs:
- A18 Pro chipset: $135 (₹11,400)
- Screen: $110 (₹9,300)
- Camera: $91 (₹7,700)
Why Do Retail Prices Double the Production Costs?
The analysis reveals that Apple and Google sell their latest Pro models at nearly double their production costs. However, the BOM figures do not account for additional expenses like shipping, distribution, marketing, research, and software development. These factors significantly contribute to the retail price.