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Why Apple’s iPhone 16 Pro Costs More to Build Than Google’s Pixel 9 Pro

Savannah

Apple iPhone 16 Pro Max and Google Pixel 9 Pro are two of the most expensive smartphones by Apple and Google in India. A recent report by Nikkei reveals that the cost of the components used to build the Pixel 9 Pro, known as the Bill of Materials (BOM), is approximately $406 (approx. Rs 34,210). In comparison, the iPhone 16 Pro’s BOM is significantly higher, coming in at around $568 (approx. Rs 47,860).

Apple iPhone 16 Pro, iPhone Pro Max Production Cost

According to TD Cowen via Wccftech, Apple’s iPhone 16 Pro Max costs about $485 (approx Rs 40,000) to manufacture, roughly one-third of its retail price, reflecting the use of premium materials and technology. The BOM increased by $32 compared to the iPhone 15 Pro Max, mainly due to upgrades like the 48MP ultrawide camera, which makes up 16% of the cost, as well as the A18 Pro chip, taller LTPO OLED display, Wi-Fi 7, and a camera button.

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Google Pixel 9 Pro Production Cost

According to a report from Nikkei (via Gizmochina), Google has taken a more cost-effective approach with the Pixel 9 Pro, reducing its BOM to around $406—11% less than the Pixel 8 Pro—by cutting costs in areas like the display and camera without sacrificing performance. The Samsung-made display costs $75, and the camera setup costs $61, both significantly lower than Apple’s equivalent components in the iPhone 16 Pro Max. However, Google invested more in its Tensor G4 processor, priced at $80, which enhances AI-driven features like image processing and voice recognition. Though cheaper than Apple’s $135 A18 Pro chip, the Tensor G4 reflects Google’s strategy of balancing cost efficiency with performance.

Although Apple and Google appear to be selling their latest ‘Pro’ phones for nearly twice their manufacturing cost, these estimates don’t account for additional expenses like shipping, distribution, research and development, and marketing, all of which significantly impact the final retail price.

Although Apple and Google appear to be selling their latest ‘Pro’ phones for nearly twice their manufacturing cost, these estimates don’t account for additional expenses like shipping, distribution, research and development, and marketing, all of which significantly impact the final retail price.

Notably, iPhone 16 Pro is launched at Rs 1,19,900 while the Pixel 9 Pro is available at Rs 1,09,999 in India.

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