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Would you pay $1,500 for Google Glass if you knew that it may only cost $80 to manufacture?

ByinAnnouncements | May 4, 2014

Google Glass TeardownWe are all aware that what we pay for any electronic device is not what the device costs to manufacture. Let’s be honest, hundreds of people are involved in the process of production, distribution, marketing and selling of the device and every single one of them has to earn their money. It’s logical that the price customer pays is higher than what the actual materials cost. But do you know how much higher? Here is an example that will leave you speechless. Google Glass sold for $1500 is actually worth $80 in pieces.

Google Glass may only cost $80 to manufacture.

How much does it cost to make Glass?Yep, you see right, and no, no digits are missing. According to a recent teardown by TechInsights, the materials for the Google Glass are worth just $79.78 to be exact. Keep in mind that this is the cost of the components only and does not include costs of design, production, etc. Also, Google’s project dates back to 2012 when the same parts were more expensive than they are today. Even so, the $1500 Google was charging for the Explorer edition of the Glass seems way off.

Google spokesman said that the estimate was “absolutely wrong” but didn’t elaborate any further. Guys at TechInsights admitted that the teardown may not be 100% correct and they are currently in the process of revising it. However, the updated estimate definitely won’t come close to $1500.

Google Glass is not a piece of equipment for an average user. In fact, it is aimed at a niche group of devoted customers and seems like Google is exploiting the fact by raising the price as much as possible.

As of now Google Glass is still under development. Since 2013, the device has been available for developers and for one day only, the sales were opened to every US resident. However, the device still cost the same $1,500. Hopefully, the final product will be priced more reasonably. Way back Google promised that the Glass would be offered at a price of an average smartphone. Let’s keep our fingers crossed that the company will make good on its promise. Otherwise, the Glass will remain out of reach for an average customer.

source: Teardown

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