Each Vision Pro headset costs Apple $1,500 to manufacture

Cal Jeffrey

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Wow! Apple shocked the industry when it confirmed rumors of a $3,500 MSRP for its then-upcoming Vision Pro headset. Many thought it was a ludicrous ask, and many still hold that opinion post-release. However, new research shows that it costs Apple more to make its spatial-reality device than most consumer-grade VR headsets retail for.

Despite comparisons to VR and AR devices, Apple's Vision Pro is neither. Not once has the tech giant referred to it as such, opting to call it a "spatial computer" or "spatial-reality" headset. It is not even natively capable of VR or AR applications, although clever developers like Resolution Games have figured out workarounds to "force" it into a pseudo-VR/AR mode.

Regardless of how consumers and critics want to categorize it, everybody can agree that its $3,500 price tag is borderline grounds for a divorce. Setting its uniqueness aside, the Vision Pro's MSRP is well above the typical starting price for most other equipment with similar components. However, recent research from Omdia shows that the Vision Pro costs more to make than other near-eye wearables retail for – way more.

Omdia's Senior Research Director David Hsieh did the accounting, and the Vision Pro's primary displays (inside) cost $456 – almost as much as Sony PS VR2's retail price. Adding in the secondary screen (the one that shows your eyes to the outside world), costs rise to $526 just for displays. That partial manufacturing cost is more than Sony's PS VR2 and Meta's Quest 3 MSRP of $499, but the bills don't stop there.

The Vision Pro's second most expensive components are its onboard processors. The primary M2 chip is the same one used in the recent MacBooks. It handles the main tasks of the device – running visionOS, apps, and graphics rendering. A second chip, the R1, manages data supplied by the external cameras, sensors, and microphones. Together, these components run Apple about $240 per unit. For perspective, Meta uses only one processor, the much cheaper Snapdragon XR2 Gen 2, and the PS VR2 doesn't even have onboard processing, opting to tether to the PS5's powerful hardware.

Including all other components in the device, Apple's total bill of materials (BOM) for the Vision Pro comes to a whopping $1,542 – over three times the MSRP of the PS VR2 and Quest 3. Whether this warrants a 133-percent MSRP markup is debatable, but Omdia didn't supply BOMs for PS VR2 or Quest 3 to compare markups. However, knowing the astronomical manufacturing costs of Apple's premium spatial computing device gives it an entirely new perspective. Ultimately, Omdia predicts that second and third-generation Vision Pros will have improved quality and performance while bringing costs down.

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Lol, of course the Apple tax is heavy on it. Who is actually surprised?

Sure, they need to make up for R&D. But compared to the other higher end VR headsets, Apple has it's walled garden to help subsidize it (how the Oculus and PSVR can be so cheap).
 
I do not like these calculations. People who design them cost millions per year in salaries.
I do not doubt Apple makes a good profit. But $1500 is not a full cost.
And I wonder if FB will ever recover billions they invested in their VR department.
 
Lol, of course the Apple tax is heavy on it. Who is actually surprised?

Sure, they need to make up for R&D. But compared to the other higher end VR headsets, Apple has it's walled garden to help subsidize it (how the Oculus and PSVR can be so cheap).
I'll give them this, and this is likely the only good thing you'll ever see me say about Apple. The software that makes the vision pro work is absolutely incredible. It's uncomfortable, expensive and I would never wear it in public, but holy hell, the motion tracking on that thing is second to none.

That said, now that Apple did it, I'm sure samsung will have something on par within the next 12 months and China will have one of their spy companies make one that's good enough for 1/3rd the cost.
 
Like everything else Apple makes, very expensive waste of money.
TBH, their USB-C to 3,5 jack dongle is quite good, even cheap when you consider sound quality ... but that's about the only counter "argument" product I could come up with :-D
 
TBH, their USB-C to 3,5 jack dongle is quite good, even cheap when you consider sound quality ... but that's about the only counter "argument" product I could come up with :-D
There had to be a few good things.
 
So Apple is making 100% profit for each device.

Others will go for 40 to 50%.

No wonder Apple has become the most valuable tech company, thanks to consumers and fans who would pay anything Apple asks for.
 
So Apple is making 100% profit for each device.

Others will go for 40 to 50%.

No wonder Apple has become the most valuable tech company, thanks to consumers and fans who would pay anything Apple asks for.
You might change your point of view fairly quickly, as nVidia is killing it for the last few years. I would not be surprised if they would to dethrone quite a lot of companies when it comes to market value. They already are pretty much kings of profit with their AI division.
Apple is certainly envy of nVidia profit margins :-D
 
For this price you get full body VR...

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The external display in dumb and it shouldn't have been implemented due to how much it costs and how much extra they charge for it.
 
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