We recently heard that the estimated cost of the parts of Google Glass were around $80, and according to a new report by IHS, the total cost of Google Glass to manufacture, including parts is around $152.
Google sells their Google Glass for $1500, the company started selling the device to anyone that wants one yesterday, and it will be available until Google is sold out of the device.
According to the IHS report, the cost of Google Glass is $152.47, the news came after the company took a Google Glass device apart and looked at the costs of each individual part and also estimated the manufacturing costs of the device.
“As in any new product—especially a device that breaks new technological ground—the bill of materials (BOM) cost of Glass represent only a portion of the actual value of the system,” said Andrew Rassweiler, senior director, cost benchmarking services for IHS. “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. When you buy Google Glass for $1,500, you are getting far, far more than just $152.47 in parts and manufacturing.”
Google has not revealed how much the Google Glass device costs the company to make, it is being sold for around 10 times the estimated build cost of the device.
Source IHS
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