John, Mike- While I agree that Google is mostly focused on the ad end of their business model and have failed to monetize many other ventures, these other products don't seem to have staying power either. Google Glass will be like buying a Nexus phone. Here today, gone tomorrow. But I agree the development will get it off the ground in that product design. And, I also agree that if they can monetize the GUI with their core money maker, advertising, then they can consider it a winner. Once the basic design and interface is debugged, look to Samsung for the cheap product that most will afford. Then, Glass will quietly disappear just like the Nexus.
As far as pricing for the retail market. I learned this with my own products I sold through Dive stores. If you expect to have a retail store outlet, you need to be able to sell your products so you make a profit and still wholesale it to the retailer so he can mark it up 100%. Then if you sell to the general public at the same markup or sale price, you won't get any stores to buy your products wholesale. Never discount as a manufacturer. In fact, I sold a few of my products direct for more than the stores were selling just to keep the buyers at the stores happy.
Yes, Google is not Apple. I own stock in both but I trade Google and maintain no core position. Google's stock price hardly moves with news like Glass or any other product announcement. It moves solely on earnings. Apple on the other hand, has wide swings on the rumors of new products, then a few weeks of sales the stock moves again. News of dividend, buybacks and now a 7 for one split, also moves the stock. The reason why is everything Apple does generates good margins and unless it is cannibalized by one of their other products, it continues to earn nice revenues generation after generation. For the past 2 years Apple has been growth stunted by two problems. 1. They do not manage their cash pile to satisfy investors. We want to see more R&D and M&A. 2. Tom Cook has yet to introduce a product post Steve Jobs that is as successful as the iPAD or iPhone. Or, a service as successful as iTunes.