Google Pixel Watch components are only 31 cheaper than retail

Google Pixel Watch components are only 31% cheaper than retail

Examination of the inside of Google Pixel Watch smartwatches revealed the presence of fairly old hardware and led to the conclusion that the retail price of $350-400 is unreasonably high. The first generation of Google Watches offers worse value for money than the $250 Apple Watch SE and $280 Samsung Galaxy Watch 5, according to a study by experts at Counterpoint Research, who compared the cost of the Calculated parts of a wearable Google gadget.

    Image source: Google

Image source: Google

According to the agency, the cost of materials and components used in the $400 LTE version of the watch is $123. Although the estimate doesn’t include costs for development, assembly, logistics, and a few other expense items, Google is still clearly betting on higher margins than its competitors.

For comparison, in 2021 the Apple Watch Series 6 had a suggested retail price of $400, the same as the Pixel Watch. At the same time, watch components cost more at $136, according to Counterpoint estimates. It’s worth noting that Apple is considered the company with the highest margins for its products in the industry. Looking at parts costs alone, the Apple Watch has a 66% margin, while the Pixel Watch has a 69% margin.

At the same time, Apple allows you to choose both the color of the case and many options for standard straps, while Google has a much meager choice – only four combinations of case and strap colors, and other straps have to be purchased separately.

    Image source: Counterpoint Research

Image source: Counterpoint Research

Counterpoint’s report states that the Pixel Watch uses a four-year-old Samsung Exynos 9110 chipset and a Samsung modem, accounting for 20% of the watch’s cost. Samsung is offering a newer and faster variant of the Exynos W920 with lower power consumption in its own cheaper watch. Another 14% of the Pixel Watch’s cost comes from the 1.2-inch OLED display from China’s BOE, Samsung Display’s biggest competitor at the moment. The Pixel Watch is often criticized for its wide bezels, which don’t quite live up to the era and price – a problem that could be solved by using higher-end displays.

While the Pixel Watch is prohibitively expensive, the second generation might offer better value compared to models from other brands.

About the author

Johnson Smith

Johnson Smith is interested in Home Theater & Audio, Smart Tech, Google News & Products, How To, Apple News & Products, Cell Phones, Automotive Technology.

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