Here’s why the Google Pixel XL isn’t as cheap as a Nexus

Pricey Google Pixel devices

There's now a clear reason why the Google Pixel line costs more than older, cheaper Nexus devices did when each launched.

Finance service company IHS Markit has revealed the Pixel XL materials cost $278 (about £230, AU$370) for each device. 

It also costs $7.75 (about £6, AU$10) to manufacture each device as well.

The Google Pixel XL features a 5.5-inch screen, 32GB of storage and a Qualcomm Snapdragon 821 processor – high-end specs that match other flagship phones in 2016.

Not Nexus prices

It currently costs $769 (£719, AU$1,269) to buy a Pixel XL upfront, which gives it a similar cost-to-sales-price ratio in line with the iPhone 7 Plus and Samsung Galaxy S7.

The Galaxy S7 has a slightly smaller manufacturing cost of $255 (about £210, AU$340), which includes the materials and manufacturing costs. The Galaxy S7 is now cheaper to buy than the Pixel XL at $750 (about £569, AU$900) though.

Andrew Rassweiler, senior director of cost benchmarking services for IHS Markit, said “Total BOM costs for the Google Pixel XL are, not surprisingly, in line with those of other competitors, because the supply base and specs are very similar from phone to phone—whether it’s an iPhone, a Galaxy-series phone or the Google Pixel XL."

You may be disappointed the Pixel XL costs more than previous Nexus phones, but if Google can make a profit from these devices the company is sure to keep on making great, high-end phones for you to buy in years to come.

ABOUT THE AUTHOR

James is Phones, Wearables and Tablets writer for TechRadar and covers all the big announcements from the best manufacturers making gadgets for your palms, wrists and face. Based in London, James is often testing out the latest and greatest phones, smartwatches, VR headsets and - when he can be motivated to go outside - fitness bands. Be sure to follow him on Twitter for all the latest from the mobile world.