I still don't really believe that tracking is offsetting cost all that much in these phones. Firstly, there's no data to suggest there's any saving is being done here. We can only speculate since nobody has release data on that point. But what we can look at is how google is pricing their phones relative to equivalent phones in their fields, which we can see is competitively priced but not too far from their competitors. If we ignore revenue from tracking, we still see significant margins and profit. That just goes to show that in this case any savings we can guess at from tracking doesn't need to be factored in. Googles competitive pricing can be more so attributed to its sheer size, already massive pool of software developers, ability to manufactory anywhere in the world to lower costs and ability to manufacture a limited amount of models of phones at a time to reduce cost and pool resources from its other departments. Nothing to me suggests that there is anything but other market forces at play that makes google act competitively.

Price comparisons of their phones: https://www.androidauthority.com/google-pixel-prices-1147281/