Cupertino, California – A recent analysis by research firm Omdia sheds light on the estimated costs of the materials used in Apple’s Vision Pro VR headset. The report reveals that the total bill of materials for the headset is approximately $1,542, with the consumer price starting at $3,499. However, the final cost can vary depending on the chosen configuration, potentially costing up to a thousand dollars more.
The Vision Pro features two micro-OLED displays, one for each eye, which are identified as the most expensive component in the headset, totaling $456. Additionally, an external display used for EyeSight is estimated to cost around $70. Overall, Omdia estimates that the displays account for about 35% of the total material cost of the device.
Silicon components, including the M2 system-on-a-chip and the R1 processor, are the second-highest cost category, with a combined estimated cost of $240, representing over 15% of the total material cost. While these estimates provide insight into the cost breakdown of the Vision Pro, they do not include expenses related to manufacturing, shipping, marketing, research, or development.
The analysis cautions against assuming that the difference between the material cost and the selling price equals Apple’s profit margin. It is emphasized that Apple’s historical profitability on hardware products does not solely rely on material costs but also considers various other factors not accounted for in the bill of materials.
Industry analysts anticipate potential cost reductions for the Vision Pro over time, following Apple’s historical trends in managing profit margins on hardware products. While the exact profit margins on the Vision Pro remain undisclosed, it is expected that Apple’s strategies for cost management will influence the device’s profitability in the market.
The study by Omdia provides valuable insights into the cost structure of Apple’s Vision Pro VR headset, shedding light on the material expenses involved in producing the innovative device. As consumers continue to embrace virtual reality technology, understanding the cost dynamics behind such cutting-edge products becomes increasingly significant for both industry observers and consumers alike.