HomeTechnologyHow much profit Google and Apple make per smartphone

How much profit Google and Apple make per smartphone


Google has already launched the Pixel 9 series to beat Apple this year. As a result of this decision, the Pixel phones became quite successful.

Now the Japanese news agency Nikkei has revealed how much money Google and Apple have spent on making Pixel 9 Pro and iPhone 16 Pro. This data shows how many dollars the company makes per smartphone sold.

The bill of materials (BOM) of Google's Pixel 9 Pro, or the cost of raw materials used in it, is a little over $400. The BOM is the cost, which is spent on each part required to manufacture the device. It serves as a basic indicator of manufacturing cost, which combines the cost of all the components that make up the entire device.

A more detailed analysis of the BOM of the Pixel 9 Pro phone on the X platform has been posted by tech account @Jukanlosreve. The phone's most expensive component is the Tensor G4 chipset, which is manufactured by Google itself. The total cost of manufacturing this chipset is $80. Next is Samsung's M14 display panel, which has a BOM of $75. Apart from this, the company has spent 61 dollars on the camera of the phone.

The report also says that the BOM cost of the Pixel 9 Pro is 11 percent lower than that of the Pixel 8 Pro. But that may not be a completely fair comparison, as the Pixel 9 Pro is technically a new model. However, if you analyze the manufacturing cost of Pixel 9 Pro XL and Pixel 8 Pro, it will be a fair comparison. Because the Pixel 9 Pro XL is actually the true successor to the Pixel 8 Pro.

The BOM cost of the iPhone 16 Pro has also been highlighted in the Nikkei report. Apple is likely to spend $568 on this phone, which is slightly more than the iPhone 15 Pro. The phone's most expensive component is its M14 display. The company is spending $110 to make this display. And for the camera part, the company has spent 91 dollars.

Apple's A18 Pro chipset is likely to cost $135. This shows the difference between the performance of Tensor and Apple chips.

Both Google Pixel 9 Pro and iPhone 16 Pro are priced at $999. That is, Google is making $599 on each Pixel 9 Pro phone and Apple is making $431 on each iPhone 16 Pro phone.

Meanwhile, most expensive Android phones in 2025 will use Qualcomm's Snapdragon 8 Elite chipset. Companies may have to spend $200 for this chipset. Due to this, the price of the phone may also increase.

It is important to remember that BOM costs only represent a small fraction of the total cost of bringing a smartphone to market. Other important factors such as research and development, marketing, shipping and distribution also play a large role in the total cost. These factors have an important impact on the pricing of the phone. But the BOM still provides an idea of ​​each company's strategy and direction of their production costs.

References: Android Authority



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