These days, we rarely consider the anticipated manufacturing costs of products, but a Counterpoint analysis published this week suggests that a Pixel Watch (LTE) would cost roughly $123 to create. That’s interesting to consider, right?
You can see how many parts are needed to make a watch like this tick in a convenient breakdown at this price. The watch’s bands as well as the screen, casing, cellular connectivity, sensors, battery, CPU, and memory. As they say, it all adds up.The percentage of the total cost for each unit is depicted in the graph below. As you can see, at 26.9%, CPU and memory expenditures make up the majority. If the $123 price per device is correct, processor and memory costs alone amount to $33.
We could certainly go one step farther and acknowledge that each unit’s actual manufacturing and delivery have costs of their own. As far as we are aware, Counterpoint’s estimate doesn’t take such factors into consideration, so Google’s actual manufacturing and distribution costs for the watch may be a little higher. We hope it’s not too much higher, though, for Google’s sake.
When all is said and done, it’s expected that Google is making a nice little profit because the Pixel Watch WiFi retails for $349. It seems crucial for operating a successful business.
