Google Pixel 9 Pro sells at double the Manufacturing cost

According to a recent report by Nikkei the Google Pixel 9 Pro costs around USD406 or Rs. 34,000 approximately, to the manufacturer. That’s less than half of its retail price in India. Also, this manufacturing cost is 11 per cent lower than that of the Pixel 8 Pro.

This cost has been further broken down by analyst @Jukanlosreve in a post on X claiming that the USD406 manufacturing costs includes USD80 for the Tensor G4 chipset, USD75 for the Samsung-manufactured M14 display, and USD61 for camera components.

The Google Pixel 9 Pro selling at double its manufacturing cost highlights both Google's pricing strategy and the high margins commonly seen in the premium smartphone market. Manufacturing costs, which encompass the raw materials and assembly, often represent just a fraction of the final retail price. In the case of the Pixel 9 Pro, the difference between the manufacturing cost and the selling price could include various other expenses and strategic pricing decisions.

By pricing the Pixel 9 Pro at double its production cost, Google aligns it with other flagship devices from competing brands, creating a perception of quality and exclusivity. High-margin pricing helps the company achieve profitability, compensate for market uncertainties, and maintain brand value.

The costs of advanced components, such as high-resolution screens, camera sensors, and processors, vary based on supply chain conditions. It could be that to manage these uncertainties, Google may price its phones higher to buffer against potential supply chain disruptions.

In short, while the manufacturing cost represents the baseline expense, the Pixel 9 Pro’s final price includes a blend of R&D, marketing, support, and strategic positioning in a highly competitive market. This is a common approach for flagship devices where branding, premium features, and market positioning justify prices far above basic production costs.