Google Glass teardown raises questions over pricing

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Google’s clearly put a lot of time and effort into the development of Google Glass – it’s rare we see products linger for so long in this seemingly-ready-to-launch mass-testing phase before a more traditional start to commercial sales. As such, it’s pretty clear Google has invested a lot of money in Glass, and that’s something we see reflected in the headset’s $1500 price tag. Presumably, we’ll see that number drop significantly at some point, but how low could we hope for it to get? $1000? $500? A recent teardown suggests things could dip even lower, as estimates place an incredibly low figure on the cost to manufacture Glass.

With a dated SoC, limited RAM, and a display estimated to cost substantially less than the big, beautiful full HD panels that typically adorn smartphones, TechInsights claims that it may cost Google a mere $80 to build a Glass headset – including assembly.

Google’s already commented on the report, calling that dollar figure “absolutely wrong,” but declining to offer a correction.

Admittedly, this report claims to be an estimate based on an incomplete analysis of the hardware, but it may not be completely in the wrong ballpark; even if it’s off about the cost of quite a few key parts, we still might not be looking at hardware that adds up to more than $200.

Smartphone shoppers are used to dealing with pretty hefty markups, paying $600-800 for phones that may only cost $150-$250 to manufacture, but do margins more than double that size make sense for wearables like Glass? Someone has to pay for those R&D costs, we guess, but it remains to be seen what shoppers at large will put up with.

Source: TechInsights
Via: Droid-life

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About The Author
Stephen Schenck
Stephen has been writing about electronics since 2008, which only serves to frustrate him that he waited so long to combine his love of gadgets and his degree in writing. In his spare time, he collects console and arcade game hardware, is a motorcycle enthusiast, and enjoys trapping blue crabs. Stephen's first mobile device was a 624 MHz Dell Axim X30, which he's convinced is still a viable platform. Stephen longs for a market where phones are sold independently of service, and bandwidth is cheap and plentiful; he's not holding his breath. In the meantime, he devours smartphone news and tries to sort out the juicy bitsRead more about Stephen Schenck!