Apple Vision Pro Is Pricey But How Much Does It Cost The Company To Make One?

Apple Vision Pro has generated a lot of buzz in the market. The price of the device has also garnered a lot of attention for being very expensive.

The Vision Pro starts at $3,499 and after adding storage and accessories such as straps, the whole package can cost as much as $4,500. Now, if we compare this then it is very much more expensive than competing headsets, such as Meta’s Quest 3, which starts at $499. It’s even pricier than Meta’s high-end headset, the Quest Pro, which starts at $999. But have you wondered why is it so expensive?

Let us have an expected cost breakup of Apple Vision Pro and understand how much Apple pays for it.

Apple Vision Pro Cost Breakup (Expected)

This latest offering from Apple includes lots of pricey state-of-the-art parts. According to an estimate by research firm Omdia, the “bill of materials” for the headset is $1,542, and that does not include the costs of research and development, packaging, marketing or even Apple’s profit margin for that matter. The most expensive part out of all is the 1.25-inch Sony Semiconductor display that goes in front of the user’s eye. It is a crucial component which makes the virtual experience feel more realistic.

The second most expensive part of the Vision Pro is the main processor, which includes Apple’s M2 chip, and R1 chip. Notably, the M2 chip is the same that Apple uses in the MacBook Air. R1 chip is a custom processor to handle video feeds and other sensors on the device.

If we talk about the Micro OLED display then Apple pays about $228 for that, according to the Omdia estimate. Each Vision Pro needs two of them, one for each eye. The Vision Pro’s displays are a defining feature. The pixels in the device are sharper than any competing headset. Even Meta CEO Mark Zuckerberg complimented this. He said, “Apple’s screen does have a higher resolution and that’s really nice.” According to a teardown analysis from repair firm iFixit, each Vision Pro display has a resolution of 3660 by 3200 pixels. That’s more pixels per eye than the iPhone 15, which has a screen resolution of 2556 by 1179 pixels. Meta’s Quest 3 comes in at a resolution of 2,064 by 2,208 per eye.

Bill of materials estimates don’t include research and development costs, or even packaging and shipping. It also doesn’t take into account capital expenditures that can add up-front costs to big parts orders.

Tim Cook On Cost-Breakup

Apple declined to comment on the matter officially, but it is clear that Apple CEO Tim Cook is not a fan of cost estimates and teardowns. Earlier in 2015, Cook said, “I’ve never seen one that’s even close to accurate.”

He added, “If you look at it from a price point of view, there’s an incredible amount of technology packed into the product,” Cook said.