A teardown of the Google Glass wearable revealed that it costs just $80 to build. The futuristic wearable device, which contains plenty of hardware akin to a smartphone, retails for $1500 for developers only but was recently made available for everyone to purchase as a one-day promotion.
Google Glass was the first wearable device, and it fact the term “wearables” was made popular simply due to this one gadget. It took collective breaths away when Google revealed it to the world as Project Glass, and introduced the now-normal “OK Google” term. Sporting features such as a touch panel, speakers, 16GB of storage, 5MP camera that records 720p video, and even a 640 x 360 display, Google Glass was always ready for your command.
However, a teardown of the wearable device shows that Google could be mass-manufacturing these devices at a cost of only $80 a piece, giving the company a staggeringly healthy 95% profit margin. This is the second teardown that shows the gadget as a grossly overpriced product – China Post claimed that Glass cost even less to make, at about $30.
A Google spokesperson has naturally rubbished both claims, calling the estimates “absolutely wrong”, but declined to further elaborate. Naturally, there is more to it than just manufacturing and raw materials costs; Google pioneered the wearables trend with its venture into Project Glass. As such, R&D costs is a vital aspect that a teardown does not reveal.
In any case, Google has indicated in the past that it plans to drastically reduce the retail price of Glass once it’s ready to purchase for the public, with initial estimates pegging it at a more reasonable $600 and a release sometime later this year.
(Source: Phone Arena)