Total Materials Cost For $1,500 Google Glass? $79.78

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News Posted: Fri, May 2 2014 10:30 AM
Google Glass costs $1,500 for the time being, but a teardown of the spectacles reveals that the total cost of the materials inside totals $79.78. That’s what you’d call a significant markup.

TechInsight’s Teardown.com did the dirty work, and they found that the most expensive part was the Texas Instruments OMAP4430 processor ($13.96). Glass also has 16GB of Toshiba EGW1 64G NAND memory ($4.68), 512MB of SK Hynix mobile DDR2 SDRAM ($8.18), a 5MP camera ($5.66), and a 570mAh battery ($1.14).

Google Glass teardown
Source: TechInsights

The full list is quite interesting, but as the teardown is brief and the prices approximated (a more in-depth teardown is forthcoming), there are some questions the list raises. For example, the display is listed at a cost of $3. That seems off; technically, the physical materials used in the display may only cost $3, but we can’t imagine that price reflects what it costs Google to get that specialized display made.

Google Glass teardown
Source: TechInsights

A Google spokesperson told the Wall Street Journal that the cost estimate was “absolutely wrong” and provided no further commentary, so for now we’ll have to take TechInsight’s findings with a grain of salt, but even if this breakdown is way off, it’s a long jump from $79.78 to $1,500.

It’s true that the company has sunk mountains of money into R&D and manufacturing for this pioneering project, so a markup--especially at this still-experimental phase--is certainly expected, but at some point in the near future Google may need to publicly justify that $1,500 price tag.
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What was the total development cost for R&D/marketing as well? Is that being vectored into the price breakdown?

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Probably not, it would cost a hell of a lot more if it was probably

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whatever it is, it wont merit 1420 dollars difference...

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Possibly Cliff. I'd imagine Google chucked a helluva lot of money to develop the project though...

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AClavero replied on Fri, May 2 2014 11:36 AM

Are we calculating dev work and r&r... yeah....

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scolaner replied on Fri, May 2 2014 11:56 AM

No--as you can see form the chart, it's strictly a materials breakdown. Even so, there's room for questioning I think.

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RWilliams replied on Fri, May 2 2014 12:39 PM

Even if the parts cost $500, that's STILL a huge margin. It seems obvious though that consumer models are going to be far more cost-effective than this, and I guess it basically has to be in order for widespread adoption. There's definitely a significant early-adopters fee here.

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replied on Fri, May 2 2014 12:56 PM

and the total material cost of a painting is? this means nothing..

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replied on Fri, May 2 2014 12:58 PM

1420 difference, for a device with limited production since its in developemente and recent introduction.. with hundreds of workers, a lot of testing.. honestly i guess you get what you pay for

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china could build it for usd$20 ... with 8MP camera + 1GB DDR2 Ram..

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figures

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A painting is not a mass-produced product, and for that reason most people don't own one.

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Sorry but I know myself and most people with common sense will not spend 1500$ for this.

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Be advised the requirements to understand the technology will cost an individual more than 6,000 to learn the basics, but then again most people with a high school degree are able to figure that out eventually. The device is fine, its the applications I am interested in :)

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They said flat out, once mass produced the price will drop...

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research, development, marketing

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If lots of people want it, then they're going to charge more for it.

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Plus think of the time and MONEY spent to develop the software and design the glasses themselves? It's not cheap.

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sevags replied on Fri, May 2 2014 7:35 PM

we always knew the explorer edition was way over priced didn't we? It was always said Explorer would be $1500 but the final product to consumers would be $300-600. It makes sense, I would say with R&D each glass costs them $160, and they will be selling for $300. Early adopters always get shafted anyway at least in terms of pricing.

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Ok, buy the material and do yourself ;)

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ouch! that is one heck of a price jump but maybe their is something else in them but im not sure but OUCH PRICE JUMP!!!!

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Sounds like I should wait until these are readily available and priced around $99 before I should buy into the technology.

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