Pixel Watch invoice of supplies reveals Google’s favorable 69% revenue margin
large image: The Pixel Watch, which debuted late final yr, is without doubt one of the most lovely wearables we have seen up to now. Google is pricing the Wi-Fi model of its smartwatch at $349 — $100 greater than the comparable Apple Watch SE — and $399.99 for the LTE model. That value level is even tougher to swallow given Counterpoint Research’s current invoice of supplies (BoM) report.
According to the corporate’s evaluation, the LTE-enabled Google Pixel Watch has an estimated BoM of $123. The wearable’s processing system and reminiscence, which features a Samsung Exynos 9110 SoC, NXP MIMXRT595S coprocessor, 32GB of reminiscence, and 2GB of RAM, account for practically 27 p.c of its whole price.
The 1.2-inch always-on OLED panel and its subsystems have been the second costliest element class, accounting for 17.2% of the watch’s whole invoice of supplies. The show has a decision of 450 x 450 (320 PPI) and might function at as much as 1000 nits of brightness in brilliant environments. It’s coated with Corning 3D Gorilla Glass 5 for additional safety.
Given these numbers, Google’s revenue margin on the Pixel Watch is a really wholesome 69%. Of course, this doesn’t embody R&D prices, manufacturing, packaging, advertising and marketing, delivery, and so on.
Let’s get again to pricing. The Pixel Watch with LTE will price $399.99, the identical because the Apple Watch Series 8. At first look, the 2 could seem comparable, however dig deeper and you may rapidly notice that is not the case. The Series 8 is powered by Apple’s personal S8, a dual-core 7nm chip clocked at 1.8GHz that debuted in September 2020, whereas the Pixel Watch runs the Exynos 9110, a 10nm dual-core chip from Q3 2018. unit, working at 1.15GHz.
The Exynos W920 would have been a greater answer for powering the Pixel Watch, because it’s based mostly on a 5nm course of and makes use of an Arm Cortex-A55 core as a substitute of the older A53 unit. It’s the identical chip that Samsung makes use of within the Galaxy Watch 5, a wearable that begins at $280.
Image credit score: Triyansh Gill