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How much does it cost Apple to manufacture the Vision Pro which it sells for $3,500?

FP Staff February 26, 2024, 16:50:26 IST

A new research has shed some light as to how much Apple needs to pay for the bill of materials for its mixed reality headset, the Vision Pro. Apple, which sells the Vision Pro’s cheapest, 256GB variant for $3,500, spends about $1,500 in materials alone

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A new research has shed some light as to how much Apple needs to pay for the bill of materials for its mixed reality headset, the Vision Pro. Apple, which sells the Vision Pro's cheapest, 256GB variant for $3,500, spends about $1,500 in materials alone
A new research has shed some light as to how much Apple needs to pay for the bill of materials for its mixed reality headset, the Vision Pro. Apple, which sells the Vision Pro's cheapest, 256GB variant for $3,500, spends about $1,500 in materials alone

Starting at $3,500, or roughly Rs 2.90 lakhs, the Apple Vision Pro certainly does not offer a lot of value for money. Even for some of Apple’s most ardent fans, justifying the cost of the Vision Pro would be a hard task. It begs the question then, how much exactly does Apple spend in making their mixed reality headset?

A lot, apparently.

According to research firm Omdia, the estimated cost for Apple to manufacture the Vision Pro headset, also known as the “bill of materials,” is approximately $1,542.

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This includes the cost of various hardware components, with the most expensive being the 1.25-inch micro-OLED displays, sourced from Sony, which cost $228 each.

Since each Vision Pro headset incorporates two of these displays, the total cost for the displays themselves cost amounts to $456.

Following the displays, the next most expensive components are the M2 and R1 chips. The R1 chip, specifically designed for processing input from cameras, sensors, and microphones, streams images to the displays within 12 milliseconds.

It’s important to note that the cost estimation provided by Omdia only covers the materials used in manufacturing the Vision Pro and does not include additional expenses such as assembly, packaging, or distribution.

Moreover, Apple also incurs significant costs in research and development, sales, and marketing activities associated with the product.

Considering the $3,500 retail price of the Vision Pro, the estimated manufacturing cost of $1,542 provides insight into the profit margin Apple generates from the sale of each unit.

However, it’s essential to recognize that these figures represent estimates and may vary based on factors such as volume production and supplier negotiations.

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