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Google's Pixel XL only costs $285 to make

But that's in-line with rival phones from Apple and Samsung.

Google's Pixel XL starts at $769.
Josh Miller/CNET

Google is squaring off against rivals in more ways than one.

Google's Pixel and Pixel XL phones are priced comparable to high-end Apple and Samsung products. This drew some ire from loyal customers who were expecting mid-range pricing, which the company previously employed for its Nexus line of devices.

Google's larger Pixel XL smartphone costs only $285 to manufacture, according to research firm IHS Markit, meaning the search giant is pulling in about $485 in profit for each device. While this may seem like an exorbitant build-to-price ratio, IHS Markit notes it closely matches rival devices like the Apple iPhone 7 Plus and Samsung Galaxy S7 Edge.

"Total BOM costs for the Google Pixel XL are, not surprisingly, in line with those of other competitors, because the supply base and specs are very similar from phone to phone--whether it's an iPhone, a Galaxy-series phone or the Google Pixel XL." said Andrew Rassweiler, senior director of cost benchmarking services for IHS Markit. "The Pixel clearly targets the same top-end flagship space occupied by the Apple iPhone and top-end Samsung Galaxy lines, with retail pricing points that directly compete with these products."

The Pixel XL is available now from Google for $769, £719, AU$1,269. A smaller model with a 5-inch screen can be had for $649, £599, AU$1,079.