Google’s smartphone business has come a long way in recent years. Initially, the Nexus brand were not doing so well but the Pixel changed everything. Pixel smartphones are gradually gaining a lot of popularities each year. As business keeps growing, so does the income but that is not entirely so with Google. Of course the company will gain more profits from sales of the Pixel Smartphones but Samsung takes greater part of the Income.
According to a research by Counterpoint on the BoM (Bill of Material) of the Google Pixel 7 Pro, Samsung provides 51% of the components used in making the device. Google makes just 7% of the components with Micron contributing 5% of components.
Breakdown of the Components Used in Manufacturing the Google Pixel 7 Pro
The 6.7-inch AMOLED display of the Google Pixel 7 Pro is the most expensive component in the phone. The screen alone takes about 20% of the production cost of the Google Pixel 7 Pro. And this screen is made by no other company but Samsung.
The 50MP main sensor of the Google Pixel 7 Pro is an ISOCELL GN1 sensor which is also made by Samsung. There is even more Samsung branded components in the Pixel 7 than you thought. Some of these components include the LSI sensor which handles the Periscope lens. The selfie camera, the whole cellular communication system, 5G baseband, transceivers as well as power trackers for sub-6GHz.
In counterpoint’s analysis, it used a Pixel 7 Pro with 12GB LPDDR5 RAM. This RAM also comes from Samsung and Micron. The 128GB storage also comes from Samsung’s home country, South Korea. However, this was made by a different company called SK Hynix.
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When it comes to Radio Frequency (RF) front-end subsystem, companies like Skyworks and Murata are the biggest beneficiaries. Skyworks handles Tx module, one low-band PAMiD module, two UHB 5G PA integrated modules, and other cellular and Wi-Fi solutions. Murata on the other hand partners with Samsung to provide mmWave module and SAW filters.
In other areas, the 5,000mAh battery capacity was supplied by ATL. But the packaging was done by a company called Sunwoda electronics. The main IC that is responsible for the fast charging came from NXP while that of the wireless charging was from IDT.
Cost of Producing the Google Pixel 7 Pro
According to data from Counterpoint, the total cost involved in producing the Google Pixel 7 Pro is $413. However the phone came with a launch price of $899. If you do the maths, it may look like Google earns about $486 but that is not the case. A lot of money goes into areas such as marketing, paying of factory workers, advertising and many more.
At the end of it all, just a small fraction goes to Google as profit. The price has dropped on the Google store now. Google has priced the Google Pixel 7 Pro at $749 on its online store at this very moment.
Source / Via: GsmArena