As consumers, it's normal to wonder about how much is actually spent on crafting a premium product. A new report sheds some light on Google's first leap into making its own smartwatch and the toll (or lack thereof) it takes.

According to a BoM analysis by Counterpoint, it's currently being estimated that Google only spends around $123 to make a single Pixel Watch. The BoM analysis has broken down each piece of the wearable that makes it what it is and has determined that the processor and memory contents of the watch equate to nearly 27% of the total cost for Google. To some groaning, the Pixel Watch does use an older Samsung processor, the Exynos 9110, to strengthen it. As most would probably assume, the Pixel Watch probably would've provided some more bang for its buck (faster and smoother) had the company opted for a better chip. Alas, consumers must settle with the 1.1GHz dual-core chipset.

There is also the MIMXRT595S co-processor as well as 2GB RAM and 32GB of internal Kingstone storage.

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Source: Counterpoint
A breakdown of how much of the pie each part of the Pixel Watch makes up that Google must spend.

The Pixel Watch's glass-domed display is next in line as estimated to account for 17% of the overall cost to create. The watch's 1.2-inch display with a 450x450 resolution is encased with a custom piece of 3D Corning Glass. While the device may be okay from certain drops (waist height at most), a cracked Pixel Watch is still a gut-wrenching possibility.

The sensors packed into the Pixel Watch are brought into the discussion as the analysis estimates these amount to nearly 8% of the cost Google must fork over. Many eyes have been on the Pixel Watch due to its strong integration with Fitbit and the work both companies have done to create an intelligent and seamless experience. Both connectivity options: LTE cellular and Wi-Fi are estimated to only attribute 10% of the cost when combined.

Additionally, the 294mAh battery, which only offers around 24 hours of usage, is estimated to only attribute 6% of the total cost. Even in our review of the product, the Pixel Watch's battery life is terrible, often requiring you to pop in on charge throughout the day if you're using it quite a bit.

Hopefully, moving forward, Google will continue to improve the overall performance and experience of the Pixel Watch. And perhaps the cost to create will be a bit closer to the cost consumers are met with. While the Pixel Watch with Bluetooth/Wi-Fi costs $349.99 and the LTE variant costs $399.99, the hike in cost is most likely attributed to everything else that is involved with creating the device such as software and other technologies.

Source: Counterpoint