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What price will the base model Google Glass retail for in USD?

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<h2 id="h_background">Background</h2>
<p><em>Wikipedia article: <a href="http://en.wikipedia.org/wiki/Google_Glass">Google Glass</a></em></p>
<h2 id="h_analysis">Analysis</h2>
<p>We could look at the future price on a cost-plus basis for similar hardware gadgets. However, that model is best for non-differentiated hardware. Given the device's uniqueness, we also need to look into strategic pricing and into value pricing.</p>
<h3 id="h_cost-plus-basis">Cost-plus basis</h3>
<p><a class="wiki-img" href="/mediadb/image/c70db5f1ebab4a2c83e9864cbd6e67cd/"><img src="/media/displays/c70db5f1ebab4a2c83e9864cbd6e67cd/wiki_medium.jpg" alt="Google Glass - Copyright: Miguel Ángel Uriondo, on Flickr." title="Google Glass - Copyright: Miguel Ángel Uriondo, on Flickr."/></a> Google expects the device to go into mass market production by the end of 2013 with a retail price of under $1500. [1] According to Jason Tsai, researcher at Topology Research Institute, Google Glass could retail for $299, in consideration of the cost of its display sourced from Himay Inc at an estimated $30 - $ 35.
[3] This opinion was criticized by Andrew Grush of Android Authority who predicts a price range of $450 to $800, arguing that the hardware cost is but a part of Google Glass's cost structure, including R&D. [4] Kevin Tofel of GigaOM supports Tsai's prediction, comparing Glass's hardware cost to a $199 Motorola MotoActv smart watch with similar components. [5]</p>
<h3 id="h_strategic-pricing">Strategic pricing</h3>
<p>At the time of Google's IPO, Larry Page and Sergey Brin chose a lower IPO price to ensure the attractiveness of the issue. Given the importance of a successful launch of a highly visible new product, they could repeat this strategy with a basse version of Google Glass. Profitability could still be substantial, through the benefits of the learning curve and through appropriate premium model differentiation.</p>
<h3 id="h_value-pricing">Value pricing</h3>
<p>Google Glass might serve new purposes of higher utility for users or certain user groups, thus allowing a premium price. (Which are the high-value applications?)</p>
<h2 id="h_external-links">External links</h2>
<ol><li><a href="http://www.pcworld.idg.com.au/article/460616/google_publishes_new_glass_how_video/">Google publishes new Glass 'how to' video</a> - PC World Australia, 1 May, 2013
</li><li><a href="http://www.youtube.com/watch?v=9c6W4CCU9M4">Google Glass Videos</a> - Google YouTube Channel
</li><li><a href="http://www.chinapost.com.tw/business/company-focus/2013/08/08/385842/Google-Glass.htm">Google Glass likely to be priced at US$299: researcher</a> - The China Post, August 8 2013
</li><li><a href="http://www.androidauthority.com/google-glass-299-rumor-254892/">Google Glass for just $299?</a> - Android Authority, 12 August 2013
</li><li><a href="http://gigaom.com/2013/08/08/why-google-glass-costs-1500-now-and-will-likely-be-around-299-later/">Why Google Glass costs $1,500 now and will likely be around $299 later</a> - GigaOM, 8 August 2013</li></ol>

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