Updated February 27th, 2024 at 18:59 IST

Here’s how much it cost Apple to make its flagship $3,500 Vision Pro

Omdia reports that Apple is paying $228 for each micro-OLED display sourced from Sony, resulting in a per-headset cost of $456 for this component alone.

Reported by: Business Desk
Apple Vision Pro | Image:Apple
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Cost of Apple Vision Pro: The high price tag of Apple's Vision Pro has been a topic of discussion since its release, with the base model starting at $3,500 for 256GB of storage. But, do you know how much it cost Apple to make its flagship VR headset? A new report from research firm Omdia offers insight into the cost breakdown of building the device, revealing that Apple's bill of materials for the Vision Pro totals just over $1,500.

Omdia's analysis indicates that the hardware components of the Vision Pro amount to $1,542. Among these components, the most expensive is the 1.25-inch micro-OLED display, with each headset incorporating two of these displays – one for each eye of the user.

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Omdia reports that Apple is paying $228 for each micro-OLED display sourced from Sony, resulting in a per-headset cost of $456 for this component alone. Following the displays, the other components of the Vision Pro are the M2 and the newly-introduced R1 chips. Apple has highlighted the R1 chip's role in processing input from various sources such as cameras, sensors, and microphones, with the capability to stream images to the displays within a rapid 12-millisecond timeframe.

However, in a broader context when examining cost figures for a product like the Vision Pro, particularly as it represents Apple's initial foray into this product category. Additionally, the Vision Pro is produced in relatively low volumes compared to Apple's mainstream products, with estimates suggesting shipments of around 400,000 units in 2024.

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Apple's close collaboration with suppliers and its proactive approach to finalising component costs well in advance are also significant factors to consider. Moreover, the cost breakdown provided by Omdia only encompasses materials and does not include other expenses such as assembly, packaging, or distribution. Apple's major investments in research and development, as well as sales and marketing efforts, further contribute to the overall cost structure of the Vision Pro.

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Published February 27th, 2024 at 17:56 IST