Google Glass Teardown exposes manufacturing cost to a plain $152

Google Glass prices $150 to produce however sells for $1500

Teardown evaluation is an useful tool for recognizing the element as well as production price of electronics tools– yet it doesn’t constantly inform the whole tale of the value of a product.

IHS teardown of Google Glass reveals that best wearable-technology device is much more than the amount of its parts.

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Case in point is Google Glass, which sells for $1,500– however has equipment and also production expenses that total up to just $152.47, according to a breakdown of the product performed by the Teardown Evaluation Legal services at IHS Technology. Does that mean that Google is pocketing an overpriced margin of 90 percent on each Glass sale?

Not by a long shot.

“As in any new item– particularly a tool that breaks new technological street– the costs of products (BOM) price of Glass represent only a part of the real worth of the hvac system,” stated Andrew Rassweiler, senior supervisor, expense benchmarking solutions for IHS. “IHS has noted this just before in other electronic gadgets, but this is most significantly illustrated in Google Glass, where the large majority of its price is linked up in non-material costs that include non-recurring engineering (NRE) expenditures, comprehensive software program as well as platform property development, as well as tooling expenses and also various other ahead of time outlays. When you get Google Glass for $1,500, you are obtaining far, much more than simply $152.47 partially as well as manufacturing.”

Looking through the Glass

Google Glass brings a BOM of $132.47. When the $20.00 production expense is brought in, the price to generate the head-mounted computer system increases to $152.47.

The initial BOM of Google Glass accounts just for hardware and production expenses, as well as does not include other costs such as software, licensing, royalties or other expenditures.


Although loads of units are in the hands of individuals, Google Glass is not yet typically readily available through retail. The pre-mass-market standing of Google Glass appears by examining its design.

“Today’s Google Glass seems like a prototype,” Rassweiler said. “The style uses several off-the-shelf components that can be further enhanced. If a mass market for the product is developed, chip makers are expected to offer more incorporated chipsets particular to the application that will greatly enhance all aspects of performance, consisting of processing rate, power performance, weight and also size. Future product alterations make sure to make strides in all of these areas.”

Last year’s model

Most of the incorporated circuits (ICs) in Google Glass are fully grown when compared to current crown jewel mobile phone designs. For instance, the Texas Instruments Inc. OMAP4430 applications cpu made use of in Google Glass is made with 45-nanometer (nm) semiconductor manufacturing modern technology– 2 generations behind the 28nm chips employed in the most recent front runner smartphones.

The use of even more innovative ICs can yield future Google Glass products that are high street, lighter, a lot more energy-efficient and also much less expensive to produce compared to the current model.

High cost for LCOS

The second most expensive single element in Google Glass is likewise its most specifying attribute: its head-mounted liquid-crystal on silicon (LCOS) projector display screen. IHS estimates the price of the Himax Technologies Inc. LCOS forecast component made by Taiwan’s Himax Technologies Inc. at $20.00, representing 15 percent of the complete Glass BOM.

“The LCOS display is the sine qua non of the Glass,” Rassweiler noted. “Equally as e-readers wouldn’t already existing without their e-Ink screens, Glass wouldn’t be feasible with the LCOS display. The screen is very slick, offering a near-eye viewing encounter that must be attended be believed.”
Texas Instruments inside

Texas Instruments elements dominate the Glass layout, with the semiconductor supplier adding the apps processor, power administration IC, audio codec, electric battery fuel gauge and also regulator ICs. Completely, TI accounts for an approximated $37.90 worth of components determined so far in the Glass, representing 29 percent of the BOM.

Sensory overload

Glass consists of 2 accelerometers: one from STMicroelectronics as well as another from InvenSense Inc. Accelerometers are commonly made use of to find activity in electronic devices, such as smartphones as well as video-game controllers. Given that smartphones generally include merely one multiaxis accelerometer, the use of two of these gadgets stands for a fascinating and unusual style option that should be additionally looked into to be understood.

Premium rush

The frame of the Glass represents the solitary most costly element of the gadget, at $22.00, or 17 percent of the BOM. The structure is made of titanium, an extremely sturdy and also costly material utilized in high-performance armed forces aircraft and also in some spectacles frameworks. Nevertheless, titanium is hardly ever made use of in industrial electronic tools examined by the IHS Teardown Evaluation Service.

“The framework is just one aspect of exactly how Google is providing Glass as a premium item,” Rassweiler kept in mind. “The high quality of the packaging and also accessories, in addition to just how the box materials are presented, gives the whole Google Glass experience a very high-end feel and also allure.”

For even more details on the IHS Teardown evaluation of the Google Glass readily available at: