Google Pixel 9 Pro costs around Rs 34,000 to manufacture, says a report

The Google Pixel 9 Pro costs around Rs $406 or Rs 34,000 approximately, to manufacture, according to a recent report. That’s not only less than half of its retail price in India, it is also 11 per cent lower manufacturing costs as compared to that of the Pixel 8 Pro. This comes from data shared by Nikkei. It claims that the Pixel 9 Pro’s material costs for Google come to about $406. This cost has been further broken down by analyst @Jukanlosreve in a post on X.
The analyst claims that the $406 manufacturing costs includes $80 (around Rs 6,800) for the Tensor G4 chipset, $75 (Rs 6,300 approximately) for the Samsung-manufactured M14 display, and $61 (Rs 5,100 approximately) for camera components. While the chip cost has increased slightly, Google has managed to reduce expenses on the display and cameras compared to previous models. Notably, this only accounts for around Rs 18,000,. The rest of the costs are associated with the shipping, marketing, and other things.
The report also claims that Google’s production cost for the Pixel 9 Pro is reportedly around 11 per cent less than that of the Pixel 8 Pro. That said, it is important to note that the comparison may not be that simple, considering the Pixel 9 Pro also features a smaller display and battery than the Pixel 8 Pro.
Meanwhile, the report also mentions that Apple’s cost to produce the iPhone 16 Pro is $568 (Rs 48,000 approximately), 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 (Rs 9,300 approximately), with camera components at $91 (Rs 7,700 approximately). Apple’s A18 Pro chip, on the other hand, costs approximately $135 (Rs 11,400 approximately), though this seems high given that Qualcomm’s Snapdragon 8 Elite is reportedly priced just under $200 (Rs 17,000 approximately).
While it is interesting to note how much these flagship phones actually cost to manufacture to brands like Apple and Google, the fact that Google Pixel 9 Pro costs about $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, the 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 command higher prices also because consumers often associate them with quality and status. This “brand premium” justifies the added cost as these companies aim to provide not just hardware but a whole ecosystem experience, which includes seamless integration, updates, and customer support. Basically, the base production cost is only one part of the total investment needed to bring a flagship phone to market.