Although Google glass was announced almost two years back, the company has not yet made the device available for purchase to the public. The few lucky ones who got their hands on the device became a part of the company’s explorer program. Further these few people who got the device had to pay $1500 per unit, which is a large amount event for a tech like Glass.
But it is said that the final price tag of Glass won’t be as high as this amount. Some say the retail price would be as low as $500 but one cannot confirm that until Google officially announces a price. The cost of the components too is expected to be much lower than $500. In fact, a recent teardown of Glass by Tech Insights reveals that the cost of making glass is less than $80.
Cost of Components of Glass
According to an estimate made by Tech Insights, the cost of components of the device is expected to be less than $80. Although they say that the cost may change until they make a final estimate, the current $80 is calculated by taking into account the cost of its internal components including its processor, camera and display.
The estimates made by these guys reveal that the cost of the camera inside Google Glass is around $5.66 while the cost of display is around $3. The processor is the costliest component in Glass and costs $13.96. There are many other components which bring the internal cost of the device close to $80.
Google Denies the $80 Estimate
While the estimate takes into account only the cost of the components, Google states that the estimate is absolutely wrong in a brief statement to WSJ. This is not that surprising as there can be plenty of other factors which may drive up the price of the product apart from its internal components.
So, things like the cost of manufacturing Glass, the cost of designing and researching to develop and improve the device are some of the factors other than cost of components which will affect its final price. Also, given that Glass is manufactured in California, the cost of manufacturing Glass will be greater than other smartphones and devices which are manufactured in Asian countries where labor is less costly.
So, the $80 figure given by these guys do not necessarily indicate the actual cost of producing the device.
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