The Google Pixel Watch is another example of a product in the electronics sector that has a price that is far greater than its real production costs. In addition to the costs associated with manufacturing, which depend on a number of variables, we also need to take into account the costs associated with marketing and other elements for a new product, such as ongoing support and research.
Premium goods often provide lower profits than mid-range and low-cost goods. After all, they frequently bring expensive premium technology. To keep the price reasonable or possibly even acceptable, the corporation must work with a reduced earning rate. Although the newly unveiled Google Pixel Watch is a high-end item, a new investigation shows that its price is lower than first thought.
The Google Pixel Watch really costs $123 to produce, according to Counterpoint Research’s in-depth research of the wearable. It amounts to less than $249 of the item’s US retail price of $349. Even if there are numerous other costs outside materials to consider, we presume that the gadget has a healthy margin.
Counterpoint verifies that the R&D and other marketing expenses are not included in this total. Yet, we can get a reasonable notion of how Google has structured this device’s pricing.
SAMSUNG EATS A MAJOR SLICE OF THE CAKE, BOE FOLLOWS ALONG WITH OTHERS
One of the biggest winners is Samsung, which receives around 20% of the purchase price. The LTE model’s chipset, LTE transceiver, and other associated components are provided by the Korean company. Once again, it shows the remarkable partnership between Google and Samsung for the Pixel lineup.
BOE deducts a sizable sum of money as well. With the Google Pixel Watch, the 1.2-inch OLED display accounts for 14% of the price.
Moreover, there has an NXP coprocessor and Kington RAM. Almost 27% of the value is made up of the combined costs of the two CPUs and the memory. Moreover, Broadcom, which also provides the Wi-Fi/Bluetooth chip, offers the GPS.
The technology for the eSIM, Google Pay, the six-axis inertial sensor, and the digital compass is provided by STMicroelectronics. The Texas Instruments heart rate monitoring device is our last option.
We may learn a lot about the Google Pixel Watch production costs from this excellent summary. Once more, the search engine giant must cope with extra expenses, which are likely included in the final $349 price. In all honesty, this pricing is reasonable given the capabilities that the wearable offers. Nevertheless, what do you think about it?
GOOGLE PIXEL WATCH SPECIFICATIONS
The Google Pixel Watch features a 1.2-inch AMOLED screen with a 450450 resolution and 1,000 nits of maximum brightness. Corning Gorilla Glass 5 is used on the panel, which also enables Always-On Display mode.
The watch is ECG certified and 5ATM water resistant (IP68). It also supports eSIM. The Exynos 9110 (10nm) dual-core Cortex-A53 processor with a 1.15 GHz clock speed powers the wearables’ internals. 32 GB of internal storage and 2 GB of RAM on the Pixel Watch are more than plenty for a wearable.
A 294 mAh battery with Qi wireless charging compatibility drives the Pixel Watch, which also includes a single loudspeaker, Wi-Fi connectivity, Bluetooth 5.0, GPS, and NFC.
Heart rate and SpO2 sensors are additional features. Future upgrades will be supported and it currently runs WearOS 3.5.
The Google Pixel Watch’s release has long been anticipated. The wearable was ultimately released in late 2022 after years of rumours and speculation.
With the introduction of the new watch, we anticipate Google to concentrate mostly on this one wearable, which will continue to make Fitbit—prior Google’s foray into the wearable market—less relevant.