Pixel Watch bill of materials estimate can’t explain the sky
When Google first announced the Pixel Watch, many people were shocked at the high price point. Some even wondered if Google had made a mistake, given that the Apple Watch starts at just $399.
However, a new report from market research firm DFC Intelligence suggests that the Pixel Watch may actually be a smart investment, despite its high cost.
According to the report, the Pixel Watch is expected to have a 35% gross margin, which is significantly higher than the 20-25% margin that is typical for smartwatches.
This means that, while the Pixel Watch may cost more than other smartwatches on the market, it is actually more profitable for Google.
The report also notes that the Pixel Watch is not just a smartwatch, but a “wearable computer” that is packed with features and sensors.
This makes the Pixel Watch more like a traditional computer, which typically has a higher margin than consumer electronics.
Overall, the DFC Intelligence report suggests that the Pixel Watch is a smart investment for Google, and that the high price tag is justified.