Google Glass components cost less than $80, Google charges $1500
Google Glass cost early adopters a whopping $1500 to buy new, but apparently only cost the mighty G $79.78 in components.
According to teardown.com the most expensive part in Google Glass is its Texas Instruments OMAP4430 processor and even that is just $13.96. The least expensive component is the tiny 570mAh battery which is just $1.14.
Of course Google spends plenty of money on research, software development, assembly, distribution and that's without considering any profit. It still seems steep.
The 5-megapixel camera cost Google $5.66, 16GB NAND memory was $8.18, and 1GB DDR2 SDRAM was just $4.68. Even the display, which seems futuristic, was just $3 including the glass.
One explanation for the bump in price is the assembly. Glass is built in California where the hourly wage is around $8. By comparison mobiles - which seem to have a smaller profit margin - are assembled in Asia. In Vietnam, the wage is about $90 per month. The fact fewer models have been produced for the limited Glass availability also bumps up costs.
That all said we can hopefully expect a far more affordable price when Glass comes to market on a larger scale. JP Gownder, wearables analyst at Forrester, said: "$1,500 is the Explorer edition price. Since Glass remains in beta – with only around 10,000 people having the device globally – the price point doesn't reflect Google's likely go-to-market price."