Apple announced its long-awaited Vision Pro headset last month at WWDC 2023 with a hefty price tag of $3500. The headset is Apple’s first foray into the mixed-reality space and is the company’s first of many mixed-reality products in its “Vision” roadmap.
The headset sports a mountain of high-end features and technologies resulting in its price, including two micro-OLED displays, a host of onboard sensors, advanced acoustic hardware, and two chips. The headset is not expected to be a mass consumer success, with Apple targeting high-end consumers, professionals, and industry specialists for its first spatial computer.
Now, thanks to a new note by Haitong International Securities analyst Jeff Pu, we have a better understanding of the price breakdown of the headset and how much it actually costs to make. In a wide-ranging note seen by Supercharged, Pu says, citing supply chain surveys, that Vision Pro’s BOM (bill of materials) cost is $1240, with the micro-OLED displays, camera module, and other components of the headset being the most expensive line items.
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A full breakdown of the costs according to Pu can be seen below.
- M2 Chip – $100
- R1 Processor – $50
- micro-OLED displays – $350
- OLED – $100
- Pancake Lens – $50
- Battery – $15
- IPD (Integrated Passive Devices) – $20
- ODM/OEM – $125
- Camera Module – $150
- Corp note
- Acoustic Components – $20
- 3D Sensing/ToF (Time of Flight) – $80
- Others – $180
At $1240, Pu notes that Apple’s cost for Vision Pro is significantly higher than the cost of other headsets on the market, which typically cost below $500 to produce. The high prices for Apple’s headset represent Apple’s focus on “high quality and high-end focus,” the analyst notes.
In an interview with Good Morning America following Vision Pro’s announcement at WWDC, Apple CEO Tim Cook defended the $3500 price tag, saying it offers “great value” and that the “engineering and depth of engineering in it is mind-blowing.” When pressed further on whether the price tag puts the headset out of reach for average consumers, Cook said, “people will make different choices depending upon their current financial situation.”
Vision Pro will officially launch in the United States early next year, with plans for a launch in the United Kingdom and Canada next on the list, according to Bloomberg. Apple is planning specially designated areas within its stores where customers will be able to try on and experience Vision Pro and visionOS.
