Building the Pixel Watch was actually quite cheap

The Google Pixel was given some flack for being a quite expensive product compared to the other watches on the market. The LTE model of the watch will set you back $399. According to a report from CounterPoint, however, the cost to build a Pixel Watch is actually pretty low.
Anyone should know that it costs money to build the products that we use every day. The cost it incurs to build the product has an effect on the final price that you pay when you check out. With the price of tech going up, it will definitely surprise a lot of people how much it costs to make their favorite devices.
The cost to build a Pixel Watch is relatively low
The Pixel Watch, as great of a smartwatch as it is, is not cheap. You’re paying a premium price for it. So, how much does Google have to shell out to build one? Well, according to the report, it costs about $123 to manufacture an LTE Pixel Watch. So, you’re paying about 2.25 times the manufacturing cost for the watch itself.
This is to be expected, as there’s always a big gap between the manufacturing cost and the final price. So, $123 of what you pay goes to offset the manufacturing cost and the rest goes into the company. As you can imagine, R&D, building, marketing, and paying employees for the Pixel watch is rather expensive, so this is one of the reasons for the high price tag.
Also, even though the watch is rather expensive, we’re not quite sure that Google is even making a profit off of the product. The company needs to sell a lot of them to effectively recuperate the cost of building the watch. So, it’s likely that the company is still operating at a loss.
Looking at the graph, the processor and RAM chips were the biggest cost. It made up 26.9% of the cost. The display came in second place at 17.2% of the cost and third place belongs to the casing, waterproofing, and thermal treating at 14.7%.

If you’re looking to buy one of these devices, you can take a look at our review of it below. It comes in two variants. One is a Wi-Fi-only version and the other one uses LTE.
Pixel Watch Review
 
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Source: ndroidheadlines.com