Guitar players know there are two important parts on electric guitar: pickups and speakers. And the pickup includes coil and permanent magnet. Stir the steel strings, it will occur movement of coil cutting magnetic induction line; then it produces audio current in the coil accordingly; amplified audio current through speakers, at last we can hear the sound. There are many factors that affect the pickups; one of the most important factors is the permanent magnet.
Two type permanent magnets are used in pickups: AlNiCo and Ceramic/Ferrite. Magnets can be made into many shapes, but the pickups just use cylinder and square. Regarding grades, people usually choose AlNiCo2, AlNiCo5, and Ceramic 8.
AlNiCo and Ceramic list at the end row of the magnet family based on magnetic force. Alnico is expensive but Ceramic is cheap. The price gap is also reflected in pickups. People only know that Alnico pickups are good, but do not know the ceramic ferrite pickups are good as well. So if you want to ask which is better, there is no answer totally. It refers to the individual subjective feelings. Therefore Seymour Duncan made an interesting test. Use one guitar which assembles different magnets, playing the same song. Can you hear the difference? Which is your favorite?