Google Targets Apple's Margins with First Pixel Phone
Google Unveils New Pixel Phones to Take on Apple
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Google's new line of Pixel phones have the shape, pricing, and some of the features of Apple Inc.'s iPhone, but critically for investors, they also have Apple-like margins.
The Pixel XL smartphone with 32 gigabytes of storage has a total build of materials and manufacturing price of $285.75, according to technology component analysis firm IHS. With a retail price of $769, that means the margins on that particular model is about $483.25 per unit, excluding costs not accounted for by IHS. This exceeds Apple's profit on the 32 GB iPhone 7 with a smaller display, according to IHS's analysis.