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Google Glass worth more than the sum of its parts

Sharon Gaudin | May 14, 2014
The $1,500 price of Google Glass is about 10 times more than the cost to build the wearable computer, but analysts say the device is more than the sum of its parts.

"While Google disputes the cost breakdowns, I tend to think that they're reasonably accurate," said Olds. "However, what these teardowns don't incorporate is the cost of engineering and some of the assembly costs. In some ways, this is like looking at the cost of manufacturing a new cutting-edge cholesterol medication. The cost of making each pill is almost nothing, but the cost of making that first pill — discovering the compound, testing it, getting approvals, etc., is massive."

IHS's teardown shows Texas Instruments' products were used in Glass.

Texas Instruments provides Glass with the apps processor, power management integrated processors, audio codec, battery fuel gauge and regulator integrated circuits. Altogether, Texas Instruments accounts for about $37.90 worth of components identified so far. That's 29% of the cost of the products parts.

According to IHS, the glass' frame, which is made of titanium, is the single most expensive component, at $22.00, or 17% of the component price.

 

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