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Google Glass teardown estimates component cost under $80

updated 11:13 am EDT, Thu May 1, 2014

Low construction cost of Glass units refuted by Google

Google Glass costs less than six percent of the current $1,500 purchase price to acquire the parts for construction, a teardown of the head-mounted device reports. An estimated bill of materials suggests Google pays just $79.78 for the materials of each Glass unit, suggesting Google could easily lower the price of the device before it has a wider public release.

Teardown.com suggests the highest-priced individual component in Glass is the processor at £13.96. Groups of parts classed as non-electric and for connectivity collectively cost $13.63 and $10.79. The display and touch panel costs $3, while the camera, NAND, and SDRAM modules are priced at $5.66, $8.18, and $4.68 respectively. The power management and audio costs an estimated $3.52 to produce, while the 570mAh battery is priced at just $1.14.

Google has been quick to respond to the estimate, claiming to the Wall Street Journal that it is "absolutely wrong," without going into further detail. The estimated pricing doe not take into account the design and assembly costs, as well as the economies of scale, which can easily alter the per-unit cost.




This is not the first time Google Glass has been taken apart, with the final component collection looking remarkably similar to that of the earlier teardown, despite Google having performed some minor revisions to the hardware.

Despite the cost of parts being relatively low, opening the door for a possible lower-priced release, it is ultimately up to Google what it charges, even as it gears up to a general public sale of the unit. After selling Glass to developers for $1,500, and finding high demand when it placed Glass up for a one-day public sale at the same price, Google may opt to keep the cost to customers high to keep user numbers and support costs low, as well as ensuring that only those able to easily afford the device, as well as those more likely to be fans of it, will use Glass publicly.



By Electronista Staff
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  1. wrenchy

    Forum Regular

    Joined: 11-03-09

    Originally Posted by NewsPosterView Post

    An estimated bill of materials suggests Google pays just $79.78 for the materials of each Glass unit, suggesting Google could easily lower the price of the device before it has a wider public release.


    Google may opt to keep the cost to customers high to keep user numbers and support costs low, as well as ensuring that only those able to easily afford the device, as well as those more likely to be fans of it, will use Glass publicly.




    A $849 64GB iPhone 5s only costs Apple $218 to build
    A $849 64GB iPhone 5s only costs Apple $218 to build | ZDNet
    Maybe Apple should lower their prices too? Why don't stories like this show up here?

  1. Ω

    Mac Elite

    Joined: 11-18-03

    $80 cost - $1500 sell
    $220 cost - $850 sell

    I am even willing to bet that Apple pays less than $220 if the numbers from ZDNet are right.

    Still a big difference between 95% margin and 75% margin - should Apple ask for $4000 to match the 95% margin? If the numbers are right then it is a prime revenue stream to be attacked.

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