Feeds

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

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

The Power of One Brief: Top reasons to choose HP BladeSystem

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." ®

Using blade systems to cut costs and sharpen efficiencies

More from The Register

next story
Report: American tech firms charge Britons a thumping nationality tax
Without representation, too. Time for a Boston (Lincs) Macbook Party?
Child diagnosed as allergic to iPad
Apple's fondleslab is the tablet dermatitis sufferers won't want to take
Microsoft takes on Chromebook with low-cost Windows laptops
Redmond's chief salesman: We're taking 'hard' decisions
For Lenovo US, 8-inch Windows tablets are DEAD – long live 8-inch Windows tablets
Reports it's killing off smaller slabs are greatly exaggerated
Cheer up, Nokia fans. It can start making mobes again in 18 months
The real winner of the Nokia sale is *drumroll* ... Nokia
Seventh-gen SPARC silicon will accelerate Oracle databases
Uncle Larry's mutually-optimised stack to become clearer in August
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.