Google's appetite for money revealed with Pixel Watch
The latest reports showed that the bill of materials (BoM) cost of the Google Pixel Watch is estimated to be $123, while the company charges $399 for the LTE version.
Counterpoint's component research practice finalized the BoM analysis on Google Pixel Watch, and the results were surprising. According to the report, Google Pixel Watch costs $123 to make, but its price tag is way over the manufacturing price. Despite using older --or slower-- components compared to Apple Watch SE and Galaxy Watch 5, it is more expensive than both smartwatches, which are priced at $250 and $280, respectively.
The report shows that processing and memory account for 26.9% of the total BoM cost. Pixel Watch uses the Exynos 9110 as the main processor, manufactured at Samsung's 10nm process node. Google Pixel Watch also uses NXP's MIMXRT595S as a co-processor. The report says, "it is an Arm Cortex-M33-based MCU with DSP and GPU cores. The combined cost of the two processors and Kingstone 32GB+2GB ePoP memory accounts for nearly 27% of the total BoM cost."
The second most valuable piece is Google Pixel Watch's 1.2-inch always-on OLED display. It also comes with Gorilla Glas 5 above the screen to protect the smartwatch from waist-high drops. Pixel Watch offers a resolution of 450x450 and supports up to 1000-nits brightness. Casing, waterproof, and thermal treatment account for 14.7% of the $123 manufacturing fee, covering the third biggest part of the pie chart. Vibrator and driver only cover 2.8% of the total value, and they are the cheapest pieces alongside PMIC and audio.
Google Pixel Watch is clearly overpriced compared to its competitors in the market. This is the first-generation smartwatch of the company, and there is still a long road ahead. In the meantime, Google is developing its smartwatch every day by offering new updates to users. Recently, Google released the fall detection feature for its smartwatch. It is expected that more features will be added to the device in the near future.
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