Pixel 9 Pro vs. iPhone 16 Pro: BOM Comparison Reveals Google's Flagship Costs Less to Make

A recent report from Japan has shed light on the cost differences in producing Google’s Pixel 9 Pro and Apple’s iPhone 16 Pro, specifically by examining the bill of materials (BOM). While BOM represents the raw cost of components without factoring in R&D, marketing, or other expenses, this insight reveals a stark contrast in manufacturing expenses between the two tech giants.

According to the report, the Pixel 9 Pro’s BOM is estimated at $406, whereas the iPhone 16 Pro’s is significantly higher at $568. This difference suggests that Apple’s flagship is about 40% more expensive to build than Google’s.

Component Cost Breakdown

The components for the Pixel 9 Pro come in at notably lower prices across the board. Google’s SoC is estimated at $80, the display at $75, and camera components at $61. In comparison, Apple’s iPhone 16 Pro reflects higher component costs: its advanced chipset is priced around $135, its display at $110, and camera components at $91.

This makes Apple’s display alone cost about 47% more than the Pixel’s, while the chipset price is 69% higher. These increased component costs for Apple might reflect the brand’s continued investment in top-tier technology, which, in turn, is pushing up the BOM.

Why the Cost Difference?

The Pixel 9 Pro’s reduced BOM reflects an 11% decrease from last year’s Pixel 8 Pro, but it’s important to note that this reduction stems from changes in the device’s design and size. The Pixel 9 Pro is smaller than the Pixel 8 Pro and Pixel 9 Pro XL, likely requiring fewer materials for its screen and battery.

Apple’s iPhone 16 Pro, however, has seen a 6% increase in its BOM from the previous year, a likely consequence of its high-end chipset, display, and camera features. For example, the iPhone 16 Pro’s display and chipset alone surpass the Pixel 9 Pro’s by approximately $90. Apple’s commitment to state-of-the-art technology seems to be contributing to these higher component prices.

Retail Price Paradox

Despite the clear difference in manufacturing costs, both devices carry the same starting price of $999. For consumers, this underscores the different strategic approaches taken by Google and Apple. Google appears focused on offering premium features while controlling production costs, potentially giving it a competitive edge in profitability. Apple, on the other hand, continues to invest heavily in proprietary tech innovations, resulting in higher costs.

Final Thoughts

While BOM alone doesn’t account for a company’s entire expenditure on a device, the contrast between the Pixel 9 Pro and iPhone 16 Pro in terms of raw materials highlights the divergent approaches of these two industry leaders. Google has found ways to offer competitive pricing with lower manufacturing costs, while Apple’s commitment to top-tier technology continues to drive up the cost of its flagship devices.