Concerns over the viability and challenges ahead for Apple to establish its Vision Pro headset have been highlighted by research claiming each device costs a whopping $1,500 to manufacture.
As reported by Omdia, the findings indicate the flagship Apple product is more expensive to make, compared to the retail price of most consumer-grade virtual reality headsets.
The cost factor is an obvious issue and because of it, the Vision Pro will not be for everyone. At an entry point of $3,499, the new device could become a niche product that will not penetrate the mainstream market. Apple will need to ensure it is capable of selling enough units, but one option will be to release a cheaper model.
Why does Apple Vision Pro cost so much to produce?
The Omdia research found Vision Pro costs considerably more to manufacture than the retail price of many other similar wearables.
In addition to the hefty price tag, consumers could be hesitant to put their faith in a product that is marketed as something different to what is already out there. Despite the comparisons to similar headsets, the Apple device is not marketed as a Virtual Reality or Augmented Reality headset. Instead, it has been labeled as mixed reality or termed as a ‘spatial computer’.
David Hsieh, senior research director at Omdia, uncovered the specs with some startling revelations. He found Vision Pro’s primary displays (inside) cost $456 – nearly as much as the retail price of Sony’s PS VR2. Then there is the secondary screen (the one that makes your eyes visible to the outside world), pushing costs up to $526 just for displays, taking production costs above both the PS VR2 and Meta’s Quest 3 which has a manufacturer’s suggested retail price (MSRP) of $499.
The next most expensive components for the Vision Pro are its onboard processors.
Its main M2 chip, the same as the one utilized in recent MacBooks, is tasked with running visionOS, apps, and graphics. This is supplemented by the R1 secondary chip, largely responsible for managing data processed by external cameras, sensors and microphones. The combined chip components add up to a cost of around £240 per unit.
Omdia estimates all materials, including every component, required for the manufacture of the Vision Pro racks up a total cost of $1,542 – more than three times the MSRP of the PS VR2 and Quest 3.
It appears almost essential for Apple to drive down the price of any second-generation Vision Pro headset whilst carefully considering any trade-offs in quality or performance.
Image: Apple
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