Pixel 2 XL first Leaked Shot with Pricing

[Zendroid1]

Interesting, but confusing. Other than the OLED panel for the XL, what engineering costs or component costs have gone up? (i.e memory and storage should cost less now than a year ago, not more.) CPUs are generally about the same cost I thought I read, etc. No new sensors or anything are anticipated, right? Squeezable sides are already on the U11, so that can't be new and expensive ..

From what I've read there are worldwide supply issues with flash storage for cell phones.

 

[Aquila]

Interesting, but confusing. Other than the OLED panel for the XL, what engineering costs or component costs have gone up? (i.e memory and storage should cost less now than a year ago, not more.) CPUs are generally about the same cost I thought I read, etc. No new sensors or anything are anticipated, right? Squeezable sides are already on the U11, so that can't be new and expensive ..

Display costs have gone up, chip costs have gone up, storage costs have gone up, we're asking for much better cameras, higher quality build materials, etc, etc. We're putting more things into the devices with an average higher cost per thing.

As an example, the Galaxy S7 cost Samsung approximately $255 in materials and basic costs per unit. The Galaxy S8 is $52 higher per unit, an increase of 20%. The prices to the consumer went up from around $670 to $720, an increase of $50, which is basically the increase in their own costs and only an increase of about 7.5% to the consumer.

The first Pixel XL was about $286 per unit and stated at $770. This means about 37% of the price of the phone, at full retail value, went to just covering the cost to make the thing. Comparing that to Samsung's S7 (same year), they were at 38% and the S8 is at 42%. If we're allowed to extrapolate that to the costs of the Pixel 2 XL, we could assume that the Pixel 2 XL costs somewhere between $315 and $357 to create. As the total price increase year over year is $80, or 10%, I think we could assume that it's closer to the $315 mark, which is also about a 10% increase. Of course it'll be a little bit before we find out the real costs.

This would mean that Samsung passed their entire price increase onto the consumers, while Google is passing the same proportion of the cost to the consumers. Makes Samsung smarter, they're keeping more cash in their own pockets.

 

[dsignori]

@Aquila.
Good stuff. I’m not surprised by cost vs end price , absurd as it is. That is the market. What I am saying is that storage costs have not gone up. It does not cost more to produce 64gb of flash memory today then it did a year ago, and in fact probabably costs less ( like just about every other mass-produced, economies-of-scale item.). The profit margin is, what it is. I just have a hard time believing production costs have gone up by that much overall (again, other than adding a OLED panel)

edit: apparently there is a flash storage shortage, so I guess that might explain some of the cost increase. Drats.

 

[dsignori]

From what I've read there are worldwide supply issues with flash storage for cell phones.

Oh. Thanks, well I guess that could be part of it then.. Good to know.

 

[Almeuit]

Oh. Thanks, well I guess that could be part of it then.. Good to know.

Yeah I remember someone saying that in our hangout we have. They said they think that is why companies are charging a tad more for these phones.

 

[pappy35]

Need to see the front to see if the dual speaker rumors are true. That'll be the difference between "damn the torpedoes! Liquidate the college fund!!!" or just meh...

My 6P still works beautifully or even better than new since the Oreo update.

 

[davidnc]

I will probably get the Black Pixel 2 XL (128gb). I like the Panda look for the back of phone ,but just prefer a black front instead of a white front. I have had white front phones before tho.

 

[ChuckG73]

I will probably get the Black Pixel 2 XL (128gb). I like the Panda look for the back of phone ,but just prefer a black front instead of a white front. I have had white front phones before tho.

I read somewhere that the screens are all black, maybe I dreamt that, but I am hoping..

 

[firebirder]

@Aquila.
Good stuff. I’m not surprised by cost vs end price , absurd as it is. That is the market. What I am saying is that storage costs have not gone up. It does not cost more to produce 64gb of flash memory today then it did a year ago, and in fact probabably costs less ( like just about every other mass-produced, economies-of-scale item.). The profit margin is, what it is. I just have a hard time believing production costs have gone up by that much overall (again, other than adding a OLED panel)

edit: apparently there is a flash storage shortage, so I guess that might explain some of the cost increase. Drats.

Call me a conspiracy theorists or whatever, but I don't believe that. If there really is a flash storage shortage, I suspect it is on purpose. I don't see any other reason why there would be a supply shortage for them.

I see this industry, like most others, and they are just pushing the price to see what they can get away with. And what are our options? A boycott (won't work, people will still buy); complain? It's just the rich being greedy and trying to get richer.

 

[Mike Dee]

I read somewhere that the screens are all black, maybe I dreamt that, but I am hoping..

The frame on the white looks white from what I can tell

 

[anon(10274434)]

The frame on the white looks white from what I can tell

Will be nice when some front views show up - should be soon - anxious to see the front of the Kinda Blue model.

 

[Mike Dee]

Will be nice when some front views show up - should be soon - anxious to see the front of the Kinda Blue model.

I saw some on cases being sold but don't want to count on that as fact

 

[cnotes2016]

Will be nice when some front views show up - should be soon - anxious to see the front of the Kinda Blue model.

Indeed

 

[anon(10274434)]

I saw some on cases being sold but don't want to count on that as fact

I used the Spigen Ultra Hybrid on Pixels and Pixel XL - haven't see them for the P2s yet.

 

[Aquila]

Call me a conspiracy theorists or whatever, but I don't believe that. If there really is a flash storage shortage, I suspect it is on purpose. I don't see any other reason why there would be a supply shortage for them.

I see this industry, like most others, and they are just pushing the price to see what they can get away with. And what are our options? A boycott (won't work, people will still buy); complain? It's just the rich being greedy and trying to get richer.

We know the shelf prices of the components. Those prices are going up.

 

[firebirder]

https://www.cnbc.com/2017/09/26/how...s-to-make-and-how-much-they-are-sold-for.html

The article is about the iPhone 8, but I'd put money on it applying to all phones similarly. The gist is that building prices are going up, but not asset much as retail prices. And the fact the iPhone mentioned in the article is built for less than $300 and sold for $800 is despicable.

 

[Aquila]

https://www.cnbc.com/2017/09/26/how...s-to-make-and-how-much-they-are-sold-for.html

The article is about the iPhone 8, but I'd put money on it applying to all phones similarly. The gist is that building prices are going up, but not asset much as retail prices. And the fact the iPhone mentioned in the article is built for less than $300 and sold for $800 is despicable.

BOM on the iPhone 8+ went up $11 and retail went up approximately $50. Where's the $39? Stockholders demanding more is most of it, but there are also costs not listed in the BOM, such as supporting Apple Care, network development, shared asset pooling with other projects, etc.

 

[modifier]

BOM on the iPhone 8+ went up $11 and retail went up approximately $50. Where's the $39? Stockholders demanding more is most of it, but there are also costs not listed in the BOM, such as supporting Apple Care, network development, shared asset pooling with other projects, etc.

Don't forget Qualcomm litigation fees.