Skip to main content

Google starts Glass sales again, still costs 10 times the estimated build cost

Detailed within a post on Google+ recently and now active on the Glass store, Google has reopened Google Glass sales in the United States while supplies last, and provided you have $1500 in your pocket. Google originally opened up Google Glass sales to the public for a special one-day sale during mid-April 2014 and eventually had to shut the store down due to demand. However, Google didn’t specify how many pairs of the glasses were actually sold during the one-day event. According to a Google representative, inventory of the glasses have been built back up since that sale and the store will continue to stay open until all pairs are sold.

Despite the accessibility of the hardware, Google still considers Glass to be in an open beta testing period for U.S. residents. Interestingly, it appears as if Google is attempting to demonstrate the product out in public as well. Over the weekend, Google set up an outdoor booth at the Players Championship PGA event in Ponte Vedra Beach, Florida. Pairs were being sold for the same price, $1,500, and sales were reported to be “better than expected.

Related Videos

ihs-google-glass-teardown-costsIn a related story, research firm IFS Technology released a report today that broke down the manufacturing cost of the device. The firm’s Teardown Analysis team estimates the cost of the hardware and manufacturing to be $152.47 for each pair, approximately one tenth of the price that Google is selling the device.

This figure is fairly close to an estimation provided by another firm called TechInsight. That research team estimated that the hardware and manufacturing cost even less at just $79.78 per pair

However, that’s not the only cost that should be accounted for when creating a price point for a product. Speaking about the findings, IFS senior director Andrew Rassweiler said “As in any new product—especially a device that breaks new technological ground—the bill of materials (BOM) cost of Glass represent only a portion of the actual value of the system.”

Rassweiler continued “IHS has noted this before in other electronic devices, but this is most dramatically illustrated in Google Glass, where the vast majority of its cost is tied up in non-material costs that include non-recurring engineering (NRE) expenses, extensive software and platform development, as well as tooling costs and other upfront outlays. When you buy Google Glass for $1,500, you are getting far, far more than just $152.47 in parts and manufacturing.

A Google spokesperson was quick to refute the estimated build cost from IFS Technology and said “While we appreciate another attempt to estimate the cost of Glass, this latest one from IHS, like Teardown.com’s, is wildly off. Glass costs significantly more to produce.”

Of course, Google will have to reduce the cost of Glass significantly if the company wants to successfully sell the hardware through retailers like Best Buy and Amazon at some point in the next couple years. Google is also faced with the challenge of educating the consumer when it comes to marketing Glass. According to the results of a recent study, nearly 70 percent of Americans will avoid wearing Glass in public due to perceived privacy issues.

Editors' Recommendations

Topics
Google’s Android monopoly finds its biggest challenge, and Apple might be next
Apps screen on the Google Pixel 7.

The Competition Commission of India slapped Google with two hefty fines over anti-competitive strategies that have allowed it to dominate the mobile ecosystem in India. Totaling over $250 million, the penalties reprimand Google for forcing smartphone makers to avoid Android forks, prefer Google’s web search service, and pre-install popular cash cows like YouTube on phones.

Google was also disciplined for forcing its own billing system on developers that allowed the giant to take up to a 30% share of all in-app purchases for applications listed on the app store. Google is not really a stranger to titanic penalties; The EU handed Google a record-breaking fine of approximately $5 billion in 2018 for abusing its dominant market position — a penalty that was upheld in September this year following Google’s appeal.

Read more
As Google’s first smartwatch, the Pixel Watch just doesn’t cut it
Someone wearing the Google Pixel Watch.

The Pixel Watch is finally here, and for all the hype that it once generated, the final product seems way off the bullseye. But make no mistake; this is definitely a Pixel smartwatch, complemented by a standout curvy design and a generous serving of neat software perks.

But the whole package isn’t generous enough for a $350+ price tag. Almost every pitfall of the Pixel Watch has to do with this pricing, from controversial hardware choices to an almost-there fitness package.
Much flash, little substance

Read more
Google is paying a historic $85 million fine after illegally tracking Android phones
Google Logo

Google will be paying Arizona $85 million in a settlement over a 2020 lawsuit that claimed the company was illegally tracking Android users for targeted advertising.

According to a report from Bloomberg, Attorney General Mark Brnovich filed a lawsuit in May 2020 claiming that Google violated the state's Consumer Fraud Act by gathering location data from Android users, even after people turned off their location settings. At the time, Google's own employees were confused about its privacy controls, admitting that it could use some fine-tuning so that when users deny the company permission to track their data, it has to respect their decision.

Read more