According to the recent report, the cost of making Google Pixel 9 Pro is around Rs 406 or approximately Rs 34,000. Not only is this less than half of its retail price in India, but the manufacturing cost is also 11 percent lower than the Pixel 8 Pro. This comes from data shared by Nikkei. It claims that the Pixel 9 Pro’s material cost to Google is approximately $406. Analyst @JukanlosReve explained this cost further in a post on X.

The analyst claims that the manufacturing cost of $406 includes $80 (roughly Rs. 6,800) for the Tensor G4 chipset, $75 (roughly Rs. 6,300) for the Samsung-made M14 display, and $61 (roughly Rs. 5,100) for the camera components. While chip costs have increased slightly, Google has managed to reduce spending on displays and cameras compared to previous models. Notably, it only costs around Rs 18,000. The remaining costs are related to shipping, marketing and other things.

The report also claims that Google’s production costs for the Pixel 9 Pro are reportedly around 11 percent lower than the Pixel 8 Pro. That said, it’s important to note that the comparison may not be that simple, as the Pixel 9 Pro also has a smaller display and battery than the Pixel 8 Pro.

Meanwhile, the report also mentions that Apple’s cost of producing the iPhone 16 Pro is $568 (roughly Rs. 48,000), which is apparently slightly higher than the manufacturing cost of the iPhone 15 Pro. For the iPhone 16 Pro, the M14 display is priced at $110 (roughly Rs. 9,300), the camera components are priced at $91 (roughly Rs. 7,700). Apple’s A18 Pro chip, on the other hand, is priced at around $135 (roughly Rs. 11,400), though this seems high as Qualcomm’s Snapdragon 8 Elite reportedly costs less than $200 (roughly Rs. 17,000).

While it’s interesting to note how much it actually costs to manufacture these flagship phones for brands like Apple and Google, the fact that the Google Pixel 9 Pro cost around $400 to manufacture isn’t actually unusual in the smartphone industry . Brands like Samsung, Apple and others also produce high-end models with material costs around the same price. However, final retail prices are much higher due to several factors. Beyond materials, these companies invest heavily in research and development, marketing, software updates, warranty services, and distribution networks.

Additionally, many premium brands have higher prices because consumers often associate them with quality and status. This “brand premium” justifies the extra cost because these companies aim to provide not just hardware but the entire ecosystem experience, including seamless integration, updates, and customer support. Basically, the base production cost is only a part of the total investment required to bring a flagship phone to market.