We don’t usually think about estimated manufacturing costs for devices these days, but an analysis from that counterpoint A production cost estimate was released this week Pixel watch (LTE) around $123. That’s neat to think about, right?
A simple breakdown for this price, you can understand how many pieces are needed to make such a watch tick. Displays, cases, cellular connectivity, sensors, batteries, processors and memory, and even watch bands. It all adds up, they say. The graph below breaks down the percentage of total cost for each unit. As you can see, processing and memory consumption take up the largest share at 26.9%. If $123 per unit is correct, that’s only $33 being spent on processing and memory.
If we want, we can always take it a step further and realize that each unit has its own actual manufacturing and shipping costs as well. As far as we know, Counterpoint’s analysis doesn’t account for those things, so Google’s actual cost to manufacture and distribute the watch may be slightly higher. As for Google, we hope it’s not too much, though.
The Pixel Watch retails for $349 for the Wi-Fi model, so when all is said and done, assume Google is making a tidy little profit. To run a successful business, it seems important.
Very neat.
// counterpoint