apple vision pro
The Apple Vision Pro is an expensive item for Apple to manufacture, with nearly half of its $3,499 price covering expensive components.
Compared to other headsets on the market, Apple Vision Pro offers high performance and ships at a similarly expensive price. Apple’s $3,499 bill is an eye-watering amount for consumers, but Apple also has to pay component suppliers a sizable slice of the pie.
Omdia researchers estimate the so-called “bill of materials” for Apple Vision Pro. CNBC, the component price is approximately $1,542 per headset. This accounts for approximately 44% of the headset’s price.
This number only covers the manufacturing of each headset and does not take into account other costs that Apple may incur, such as recouping its research and development budget or selling the headsets to the public.
The bill of materials is over $1,500, which is higher than the retail price of many current headsets, including the Meta Quest Pro’s $999 and $1,499 at launch.
Omdia believes the most expensive elements of the headset are the two Sony micro-OLED displays, with a price of $228 per display. The display is approximately 3,380 pixels per inch and is undoubtedly the most important component that provides the high resolution and image quality that Apple requires in its products.
Also, the display is more expensive than the chipset used to enhance the experience. The second chipset includes an M2 chip and an R1 chip with custom sensor management.
It comes as no surprise to Apple that the manufacturing costs of each headset are extremely high, despite the prospect of minimal profits for first-generation devices. Future model refreshes are expected, and improvements in component production and economies of scale will ultimately allow Apple to reduce the per-device cost of its hardware.
While Apple probably won’t make a lot of money from the early Apple Vision Pro, there’s a good chance Apple will make money from later models.