Hat Tip: Wall Street Journal, Digits Column
The initial results from the Google Glass teardown are in.
The product that Google is currently charging $1,500 for (when they are actually selling it.) contains under $100 in electronic components. (The actual number the analysis came up with was $79.78)
That is a shockingly low number given the $1,500 initial price tag.
Granted, there are price factors beyond the electronic components.
Google spend a great deal of money on research and development. The company will certainly want to recoup those costs. That increases the cost of the product, at least until those costs are recovered.
The size and shape of the product may also increase manufacturing costs. Putting those components in a fairly large, rectangular object (like a typical point-and-shoot camera) isn't nearly as difficult as squeezing them into an object small enough to fit on a pair of glasses.
The biggest technological break through seems to be the display. Google manages to squeeze 640x360 pixel resolution out of a component that fits on a dime. Google incorporates the technique used by projection t.v.s to make the output seem much larger.
One problem facing Google when it comes to Google Glass is the technological break through that hasn't happened: batteries. The form factor forces Google to use an underpowered battery leading to short battery life.
To put the Google Glass in perspective, look at the GoPro3.
Same 5MP resolution in a camera mall enough to be used as a helmet cam. It sells for $200.
That is what Google will have to compete with if it wants Google Glass to succeed. The form factor that allows Google Glass to be worn on glasses may be worth a premium. $1,300 is just too much.
And Google really needs to be careful when trying to charge that much. If they get any interest, other companies will be quick to introduce competing products. And the fact that Google Glass is made with ordinary components or existing technology means they have little ability to stop other companies from doing so, and those companies will have little difficulty in producing competing products.
(Work on Google Glass started in 2011. It won't even take competitors the three years it took Google given an existing product to work with.)
They may even be able to pull off something better.
At a lower price.
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