Background == Wikipedia article: Google Glass== Analysis ==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.=== Cost-plus basis ===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]=== Strategic pricing === 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.=== Value pricing ===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?)== External links ==# Google publishes new Glass 'how to' video - PC World Australia, 1 May, 2013# Google Glass Videos - Google YouTube Channel# Google Glass likely to be priced at US$299: researcher - The China Post, August 8 2013# Google Glass for just $299? - Android Authority, 12 August 2013# Why Google Glass costs $1,500 now and will likely be around $299 later - GigaOM, 8 August 2013