Inside Apple's Vision Pro: cost breakdown and future developments

Apple's Vision Pro headset comes with a hefty price tag of $3,500, making it one of the most expensive AR/VR headsets on the market. However, a breakdown of its components reveals that a significant portion of this cost, over $1,500, is attributed to its premium "bill of materials."

According to research by Omdia, the key components of the Vision Pro are estimated to cost Apple approximately $1,542. This includes the two 1.25-inch micro-OLED displays, each costing around $228, which provide a total of 23 million pixels, surpassing the resolution of a 4K TV.

Additionally, the M2 and R1 chips, responsible for processing content and managing sensory information, contribute to a combined cost of $240.

While these numbers give an idea of component costs, they don't take into account other costs such as research and development, packaging, shipping, and marketing, so it's difficult to estimate Apple's profit margin based on these estimates alone.

Despite its high cost, Apple plans to produce fewer than 400,000 Vision Pro headsets in 2024 due to manufacturing complexities. However, the company is already exploring ways to make future versions more affordable. These include using chips similar to those found in iPhones, employing lower-resolution displays, and potentially eliminating features like the outward-facing EyeSight function.

Rumors suggest that a next-generation version of the Vision Pro could debut in late 2025, offering further advancements and potentially a more accessible price point.