Google Glass Components Only Cost $80, Yet It Sells For $1500

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Google Glass Components Only Cost $80, Yet It Sells For $1500

Ever since the announcement of Google Glass many have questioned why a set of glasses with a camera attached costs $1500.

Teardown took the time to find out how much the components in Google Glass would cost. Here is their tear down on a 16GB model from April 2014.

  • Display/touchscreen and glass = $3.00
  • Battery = $1.14
  • Camera = $5.66
  • Connectivity = $10.79
  • NAND = $8.18
  • SDRAM = $4.68
  • Processor = $13.96
  • BB+XCR = $0
  • Power mgmt/audio = $3.52
  • Non-electric = $13.63
  • Other = $11.32
  • Supporting materials = $1.75
  • Assembly and test = $2.15

Total cost = $79.78

Now with the components costing nearly $80, you must be wondering how Google can sell it for $1500. Well you also have to consider that Google Glass is built in California where the average hourly wage is $8. Then you have to consider all the engineers and researchers which have spent years developing the product, including the software. An experienced engineer will cost over $100k a year and Google of course has many. Also with it being run in limited production and in the BETA phase, Google may purposefully be putting off the general consumer for now while they still finish the product.

The component cost actually works in the consumers favour. When and if Google bring the product to the mass market, it will most likely be built in Asia and will be sold at a much more affordable price.