Feeds

Teardowns confirm $1,500 Google Glass hardware is DIRT CHEAP

But that's not what you're paying for...

Build a business case: developing custom apps

Yet another analyst firm has placed a low price tag on the hardware comprising Google Glass headsets.

Researchers with IHS said in a teardown analysis of the augmented reality platform that each headset contains a bill of materials (BOM) of $152.47.

According to IHS, Google uses parts that cost $132.47 per Glass headset, while an additional $20 charge would come from the cost of manufacturing the device. Glass is currently being offered in limited quantities at a cost of $1,500 each.

Among the costliest pieces in Glass is its frame, which IHS estimates to be a titanium casing costing $22. Other hardware includes $20 for the Glass' LCOS panel display and $12.50 for casing, charger, USB cable, and earpiece.

IHS's number fall generally in line with what other analysts have been estimating to be the BOM for Google Glass. An April teardown from analyst house TechInsights suggested that Glass cost hardware as little as $80, while a Taiwanese analyst believes that Google would be able to charge as little as $299 and still turn a profit.

Google, while not providing specifics on what it pays per unit, has dismissed suggestions that building Glass carries such a low cost to the company. Indeed, analysts freely note that teardown estimates fail to account for the considerable costs of research and development.

IHS senior director of cost benchmarking services Andrew Rassweiler noted that Google's $1,500 price tag reflects not just the cost of developing glass and procuring the hardware, but also setting up the infrastructure to build, sell, and support a brand new device.

"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," Rassweiler said.

"When you buy Google Glass for $1,500, you are getting far, far more than just $152.47 in parts and manufacturing." ®

The essential guide to IT transformation

More from The Register

next story
Reg man looks through a Glass, darkly: Google's toy ploy or killer tech specs?
Tip: Put the shades on and you'll look less of a spanner
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
One step closer to ROBOT BUTLERS: Dyson flashes vid of VACUUM SUCKER bot
Latest cleaner available for world+dog in September
Samsung Gear S: Quick, LAUNCH IT – before Apple straps on iWatch
Full specs for wrist-mounted device here ... but who'll buy it?
Apple promises to lift Curse of the Drained iPhone 5 Battery
Have you tried turning it off and...? Never mind, here's a replacement
Now that's FIRE WIRE: HP recalls 6 MILLION burn-risk laptop cables
Right in the middle of Burning Mains Man week
Apple's iWatch? They cannae do it ... they don't have the POWER
Analyst predicts fanbois will have to wait until next year
HUGE iPAD? Maybe. HUGE ADVERTS? That's for SURE
Noo! Hand not big enough! Don't look at meee!
AMD unveils 'single purpose' graphics card for PC gamers and NO ONE else
Chip maker claims the Radeon R9 285 is 'best in its class'
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.