Google Glass Available to All, IHS Breaks Down Materials Cost

Google announced Tuesday evening that its Google Glass product, although still in beta, is now available to anyone in the U.S. while supplies last. IHS released a product breakdown of Glass, and says that the cost of hardware and manufacturing is approximately $152, a small fraction of the product’s $1500 selling price. While IHS did note nonmaterial expenses such as software development, engineering and tooling, Google claims that the IHS cost estimate is “wildly off.”

“While we appreciate another attempt to estimate the cost of Glass, this latest one from IHS, like Teardown.com’s, is wildly off,” explained a Google spokesman. “Glass costs significantly more to produce.”

Several weeks ago, TechInsight’s Teardown.com reported an even lower cost estimate for Google Glass at $79.78.

“IHS and Teardown.com both mentioned that Texas Instruments Inc. components are a major part of the Glass design,” reports The Wall Street Journal. “IHS said the semiconductor supplier contributed the apps processor, power management IC, audio codec, battery fuel gauge and regulator ICs, accounting for an estimated $37.90 worth of components identified so far in the product.”

Google hopes to eventually reduce the cost of Glass, especially when mass production allows for lower component costs.

Related Stories:
Google Glass is On Sale for Anyone in the U.S. (Again), The Wall Street Journal, 5/13/14
Google Glass, Get ‘Em While They Last, Computerworld, 5/13/14