Apple's Vision Pro starts at $3,500, which puts it at the higher end of the AR/VR headset market, but a large part of that cost comes from the device's advanced "bill of materials," which is thought to cost just over $1,500.
According to Omdia's research, the components used in the Vision Pro cost Apple an estimated $1,542 in total. The most expensive component is said to be the two 1.25-inch micro-OLED displays inside the headset, one for each eye. The two displays offer a total of 23 million pixels, which Apple says has "more pixels than a 4K TV." Omdia estimates that Apple paid $228 per display, or $456 per device.
Followed by M2 and R1 chips. M2 is the main processor, the same chip first used in the 2022 MacBook Air. M2 processes content, runs the visionOS operating system, executes computer vision algorithms and delivers graphics content. The R1 chip handles all information from cameras, sensors and microphones. The total cost of both chips is $240.
As CNBC points out, it's difficult to extrapolate Apple's profit margins from these estimates because they don't take into account R&D costs, packaging, shipping, sales, marketing, and any capital expenditures that might add to the upfront cost of a large parts order. Still, it can give us an idea of how costly the parts themselves are in a given device.
According to Tianfeng Securities analyst Ming-Chi Kuo, Apple is expected to produce less than 400,000 Vision Pro units in 2024 due to the complexity of production. However, it is said that Apple is already developing a new version of Apple Vision Pro, which will be more affordable. The device's chip is likely to be on par with an iPhone rather than a Mac-level chip, and Apple may also use a lower-resolution internal display and cheaper materials. It may also give up the EyeSight feature that lets others see a simulation of the wearer's eyes.
Bloomberg's Mark Gurman believes that Apple is developing the next generation Vision Pro, which may be launched sometime in late 2025.