New
Google Glass Teardown Claims Device Costs Only $150 to Make. A complete
teardown of Google Glass, Google's $1,500 wearable computer, conducted
earlier this month reveals that the price of the components adds up to
just $152.47. The teardown, performed by IHS, found that the most
expensive part of the Glass is its frame, which the company priced at
$22.
"Today’s
Google Glass feels like a prototype," said Andrew Rassweiler, senior
director of cost benchmarking services for IHS, in a statement. "The
design employs many off-the-shelf components that could be further
optimized. If a mass market for the product is established, chipmakers
are expected to offer more integrated chipsets specific to the
application that will greatly improve all aspects of performance,
including processing speed, energy efficiency, weight and size."
The
second-most expensive component of Glass, according to IHS, is its
square lens, made by Taiwan’s Himax Technologies, at a cost of $20.
A
similar teardown of the device was conducted in April by Teardown.com,
which came up with a figure of $79.78 for the total cost of the device's
components, a figure Google disputed.
"While
we appreciate Teardown.com's attempt to guess the cost of Glass, their
estimate is wildly off," a spokesperson from Google told the website eWEEK, earlier this month. "Glass — parts and all — costs significantly more than their estimate."
However,
at just $70 more, IHS Technology's estimate isn't likely to quell the
chatter around the high price of Google Glass — a product the company
says is still in beta testing — versus the cost to construct it.
But
despite the wide margin between what IHS claims is Google's cost to
build Glass and its price, the research company indicates that the
device is worth more than the sum of its parts.
“[T]he
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," says Rassweiler. "When you buy Google Glass for $1,500, you
are getting far, far more than just $152.47 in parts and manufacturing.”
This
timing of this reveal of the new Google Glass teardown could turn out
to be significant, as Google announced on Tuesday that it has decided to
make the previously invitation-only wearable computing device available
to all consumers without an invite.
Now,
empowered with the knowledge that Glass costs around $150 to build,
some fans of the device might think twice before parting with their
$1,500.
Posted by : Gizmeon
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