With Google increasing its profit margin, the price of its Pixel Watch smartwatch has been "inflated" quite a lot.
According to Digital Trends , a new report has revealed the extremely high profit margins of the Google Pixel Watch, and it seems that Google is looking to make more profits than its competitors.
According to a report from Counterpoint Research, Google spent $123 to build a Pixel Watch (4G LTE variant), but it charged a retail fee of up to $400 for the device. (equivalent to 9.5 million VND). When compared to the margins of similar devices in the market, it seems that Google has "screamed" the price a bit high.
The profit margin of Pixel Watch is higher than that of Apple Watch.
Obviously, a company like Google has to generate a lot of revenue, but the 69% profit margin seems a bit high. Apple, which has a reputation for having the highest margins in the mobile industry, has a profit margin of 66% for the Apple Watch Series 6, which initially retailed for $400. Although this is only 3% less than Google's profit, the Apple Watch can justify the price thanks to the high compatibility between the product's hardware and software.
But the comparison between the current high-end Apple Watch line and the Pixel Watch is disproportionate. In terms of features and quality, it would be more accurate to compare the Pixel Watch with more popular product lines like the Apple Watch SE 2, which retails for $250 (about 5.9 million VND) or the Galaxy Watch 5, which has a retail price of $250. retail price is 280 USD (about 6.6 million VND). When we look at it from that angle, we see that Google is spending less money than its competitors on smartwatches, but charging 30% more.
The Counterpoint Research report won't cause Google to cut the price of the device, but it might help those looking to buy a Pixel Watch get a little better idea of what they're about to shell out for.
While high margins are an industry standard, especially when it comes to Apple's high-end devices, the quality of the Pixel Watch probably isn't enough with a 69% margin. Either way, Pixel fans can still get a Pixel Watch if they feel it's the right device for their lives.