Apple Vision Pro Costs $1542 to Make, Screen Most Expensive

Report on Apple Vision Pro Costs

On February 27, according to Bullwhip News, reports from foreign sources indicated that the research company Omdia has publicly released estimated data for the actual material costs of Apple Vision Pro for the first time. The analysis identified the overall price tag of the materials and determined which components incur the highest costs.

Senior Research Director at Omdia, David Hsieh, estimated the total bill of materials to be around $1,542. The starting consumer price for these earphones is $3,499, but depending on the configuration chosen by the buyer, the price could exceed $1,000.

Vision Pro presents users with the real and virtual worlds through two micro OLED displays, one for each eye. These dual displays together are the costliest components in the earphones, amounting to $456. Hsieh approximates that another external display (used for EyeSight) costs around $70. This implies that Omdia estimates the screens of the device to constitute about 35% of the total material cost.

The second category is silicon; the cumulative cost estimate for the M2 system-on-chip and R1 processor is $240, slightly higher than 15% of the total material cost of the device.

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Regardless of how accurate the $1,542 figure is, we should avoid the temptation to claim that Apple makes a profit of $1,957 from each $3,499 Vision Pro sold, as this is evidently not the case.

Material bills like this do not take into account manufacturing, transportation, or marketing costs, nor do they consider research and development costs. From these estimates, we cannot determine how much profit Apple makes from each Vision Pro sold, but it is definitely much less than the difference between the price tag and the materials list.

Apple has historically maintained significant profit margins on hardware products like the iPhone. Vision Pro may follow in these footsteps, or it may be an anomaly. Only Apple knows for sure. Analysts, however, predict that some of these costs will decrease over time.

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