How much it costs Apple to make the $3,500 Vision Pro

How much it costs Apple to make the $3,500 Vision Pro

Apple Vision Pro comes with a significant price tag, starting at $3,500 for the base model with 256GB of storage. Recent insights from research firm Omdia shed light on the cost breakdown behind this premium device, revealing that Apple's expenses for building Vision Pro, also known as its "bill of materials," amount to just over $1,500.

Omdia's research indicates that the hardware components of Vision Pro, totaling $1,542, make up a substantial portion of Apple's expenses. The primary contributors to this cost include the 1.25-inch micro-OLED displays, with each headset incorporating two of these displays—one for each eye. These displays, sourced from Sony, are priced at $228 each, resulting in a per-headset cost of $456.

Following the displays, the next significant expenses for Vision Pro are attributed to the M2 and R1 chips. The R1 chip, in particular, is dedicated to processing inputs from various sensors, cameras, and microphones, ensuring seamless streaming of images to the displays within a remarkable 12-millisecond timeframe.

It's important to contextualize these cost figures, especially considering Vision Pro's status as a first-generation product. Additionally, Vision Pro remains a relatively low-volume product for Apple, with forecasts suggesting approximately 400,000 units will be shipped in 2024.

Apple's collaboration with suppliers and early finalization of component costs contribute to these figures, which solely cover material expenses and exclude other production costs like assembly, packaging, and distribution. Moreover, Apple's investment in research and development, as well as sales and marketing, underscores the comprehensive expenses associated with bringing Vision Pro to market.

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