Just How Much Does It Cost Apple to Make a Vision Pro Headset?

Just How Much Does It Cost Apple to Make a Vision Pro Headset?

Apple’s Vision Pro has a base price of $3,500 at retail, making it the priciest AR/VR headset available to the public. So, how much does it cost to manufacture a single Vision Pro? A new research report says the bill of material used for the Vision Pro comes in at approximately $1,500.

According to Omdia’s research, the components used in Vision Pro are estimated to cost Apple a total of $1,542, with the most expensive component being the twin 1.25-inch micro-OLED displays inside the headset. The displays provide a total of 23 million pixels, which Apple says is “more pixels than a 4K TV.” Omdia estimates that Apple pays $228 for each display, or $456 per headset.

The next most expensive components in the headset are the M2 main processor and the R1 chip. The M2 is responsible for processing content, running the visionOS operating system, providing graphical content, and more. Meanwhile, the R1 chip handles all of the information coming from the cameras, sensors, and microphones. Apple pays a total of $240 for the pair.

As noted by CNBC, these estimated figures do not take into account research and development costs, packaging, shipping, sales, marketing, and any capital expenditures that Apple makes.

While Apple doesn’t typically discuss its suppliers and how much it pays for components, Apple CEO Tim Cook was asked about the device’s price tag on a recent earnings call.

“If you look at it from a price point of view, there’s an incredible amount of technology packed into the product,” Cook said.

Cook discussed some of the more expensive parts in the device and also discussed the R&D costs that Apple spent developing such a device.

“There’s 5,000 patents in the product, and it’s built on many innovations that Apple has spent multiple years on from silicon to displays and significant AI and machine learning. All the hand tracking, the room mapping, all of this stuff is driven by AI, and so we’re incredibly excited about it,” Cook said.