Google has worked with the technology-changing company Samsung and launched its Google Pixel Watch last year in October. The watch however isn’t available in the Indian market but it can be purchased from the U.S. market.
However, is the watch really worth it? As it costs a wholesome amount of $399, do we really need to invest so much in something just for the sake of brand value?
Google is probably trying to make the most out of its Google Pixel Watch as a report by Counterpoint Research has recently revealed a Billing-of-Materials (BoM) that exposes the cost of manufacturing the Google Pixel Watch.
The reveal has shocked the world as the manufacturing cost is the bare minimum compared to its retail price. Now, is it really worth it to spend so much on a product that’s good but expensive for nothing?
Google Pixel Watch: Manufacturing Cost
Google is charging nearly double the amount for the Pixel Watch. Hard to believe right? Well here are a few details that reveal the real cost of making a Google Pixel Watch:
Google invests the most in the processor part of the Google Pixel Watch. Apart from that, a few more components including storage, RAM, and battery also take a major part in increasing the cost of development. Regardless of all, the company still charges a surplus as its retail price stands at $399 (LTE variant).
Cost of making:
- Processor– Google Pixel Watch is powered by Samsung’s Exynos 9110 chipset processor. Other sub-components of the processor include MIMXRT595S from NXP. The processing part alone takes 27% of the total cost.
- The smartwatch is powered by 2GB RAM and 32GB
- Display– The major part of manufacturing cost is taken by the corning Gorilla glass. The company spends 17% of the total cost on it.
- Casing and Waterproofing- Google invested 3% of the total cost on this part.
- Sensors and Battery- The company spends 3% and 6% on sensors and battery & charging components respectively.
Credit: Counterpoint
Billing of Materials (BoM) Comparison: Google Pixel Watch vs OnePlus Watch
The reports reveal that the price of the Pixel Watch is far ahead of other Fitbit watches in the market. For a better understanding, OnePlus spends $68 to manufacture its smartwatch (with almost similar specs as Google Pixel Watch) and sells it for $159 (INR 12,992). Now compare its retail price with the Google Pixel Watch which costs $399 (INR 32,600). The cost of the Pixel watch is ineffective even after all the considerations.
Also Read: Google Develops New Interface For Foldable Phones
However, the price of the smartest also depends on its R&D process apart from the cost of raw materials. The cost of R&D isn’t a part of the Billing of Materials (BoM) and it might be a major result in the fluctuation of the cost of Google Pixel Watch.