Only $123: Google Pixel Watch's cost price is three times less than the official price

Last October, Google unveiled its first smart watch, Google Pixel Watch. Counterpoint Research analysts decided to calculate the cost of the gadget.

Here's What It Costs

For the calculations, analysts took the LTE version of the smartwatch, which officially costs $400. As it turns out, the price of all components of the device is 3 times less - only $123.

Two processors and an embedded memory chip account for most of this amount - they cost $33.21. The display costs $21.16, cellular-related parts cost $6.15, and other connectivity-related components cost around $7. Sensors that track health indicators collectively cost Google $10.21. Another $18.08 goes for the case, water protection and heat treatment.

Incidentally, the largest supplier of parts is Samsung - the Google Pixel Watch has 20% of its parts manufactured.

Thus, the cost of the device is $123. But that doesn't point to Google's huge profits at all because the cost of production, as calculated by Counterpoint Research, doesn't include spending on assembly, packaging, logistics and marketing.

Source: Counterpoint Research