Well then. Google has been getting Glass into more and more hands lately, and now we’re seeing some people tearing it down to see what’s inside, as many of us are anxious to see what Google has in Glass. And it appears that all the parts are under $80. According to this tear down, it appears that the most expensive part is the TI OMAP processor at only $13.96. Which means Google is making a seriously good profit on Google Glass. Because labor and shipping can’t cost that much. It makes Apple and Samsung’s profit margin look small, and we know that it’s actually pretty big. For example, the Galaxy S5 costs a little over $200 to make, yet Samsung charges over $600 for it.
There are a couple of reasons why Google could be charging this much for Glass when it costs so little for all the parts. One is R&D. We know that Google has spent a ton on R&D for Glass over the past few years. But then again, they are a company that can actually afford to spend that much on R&D. Another reason is that Google only wants developers. They don’t want everyone with Glass, at least not yet. Which makes sense as they are still working on it and trying to get the ecosystem together for Glass. But at $1500, that’s a pretty steep barrier. And a lot of developers have decided not to get Glass as well. I’d almost venture to guess that more journalists own Glass than developers. Because you see a ton of reporters with Glass these days, but not to many actual developers with it.
Glass is expected to hit the market for everyone later this year. And we’re expecting a pretty dramatic price drop as well. Supposedly going to drop down to around $500 or less. If Google really wants to get Glass in everyone’s hands, they could drop it down as low as $100. I’m sure a lot of people would buy it then.