APPLE

Here's How Much It Costs Apple to Produce the $3,500 Vision Pro

It's no secret that Apple Vision Pro is expensive: from $3,500 for 256 GB of memory. New data from research firm Omdia puts that figure into context, estimating that Apple's cost to create the Vision Pro is “bill of materials” costs just over $1,500.

According to CNBC, Omdia research estimates that the Vision Pro hardware components cost Apple a total of $1,542. The most expensive component is the 1.25-inch micro-OLED display, of which each Vision Pro uses two. These are displays that are located inside the headset, one for each user's eye.

According to Omdia, Apple is paying $228 for each of these displays from Sony, with the headset costing $456 per headset.

The second most expensive components of the Vision Pro after the displays are two chips: the M2 and the all-new R1. Apple says the R1 chip is specifically designed to process input from cameras, sensors and microphones, delivering images to displays within 12 milliseconds.

As always, it's important to keep the bigger picture in mind when looking at cost numbers like these, especially for a first-generation product like the Vision Pro. The Apple Vision Pro is also a relatively low-volume product for Apple, with Apple estimated to sell around 400,000 units in 2024.

Apple works closely with its suppliers and often determines the cost of components in advance. These figures also only include materials and do not include other manufacturing costs such as assembly, packaging or distribution. Apple, of course, spent a lot of money on research and development, sales and marketing.

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