Apple’s $3,000 AR/VR headset supposedly prices round $1,500 to make

Apple is broadly anticipated to unveil its first-gen AR/VR headset at WWDC 2023 in a couple of weeks. In keeping with trademark leaks, the product’s business title could be Actuality Professional, with Apple reportedly able to cost $3,000 per blended actuality headset. Whereas the value isn’t confirmed, the subtle machine needs to be as highly effective as a MacBook and run iPads apps, amongst different issues. Subsequently, the first-gen machine received’t be low cost to fabricate, with a couple of reviews indicating a $1,500 Invoice of Supplies (BoM) value for the Actuality Professional AR/VR headset.

That’s half the rumored value of the brand new product, which Apple will reportedly promote at value quite than at a loss. The tidbit comes from an intensive Bloomberg report that particulars the quite tumultuous Actuality Professional improvement course of.

Nonetheless, if the BoM is right, we’re solely what it prices to fabricate the headset. Apple may add improvement prices on prime of that in addition to advertising and marketing prices.

The identical Bloomberg report famous that Apple spent 7 years growing the gadget, investing about $1 billion yearly. Nonetheless, it’ll be some time till it turns a revenue, because it solely goals to promote about 1 million models within the first yr.

As for that $1,500 BoM, it’s too early to substantiate it. XRDailyNews obtained a number of variations of BoMs for the unreleased Apple machine from XR knowledgeable Brad Lynch.

A primary report from Minsheng Electronics says Apple will manufacture 400,000 to 500,000 models this yr. It additionally lists the assorted elements going contained in the AR/VR headset, concluding the machine will value $1,400 to make. Including transport prices, the BoM may go to $1,600.

The processors ($120-$140), micro OLED screens ($280-$320), and 14 cameras ($160) are a number of the costliest parts of Apple’s first blended actuality headset.

The weblog additionally highlighted a report from Wellsenn XR, which gives the same total BoM for the Actuality Professional machine. The listing mentions a number of the blended actuality headset’s specs:

  • M2 System-on-Chip (SoC)
  • 12GB of LPDRR5 RAM
  • 512GB of UFS 4.0 storage
  • Two 1.3-inch micro OLED panels
  • one LG AMOLED display
  • Wi-Fi 6
  • Bluetooth 5.3
  • greater than a dozen cameras

Lastly, the XRDailyNews report cites two further sources from China that point out barely decrease figures: $1,290 and $1,300.

Apple doesn’t disclose BoM figures for its merchandise, so making an attempt to guess how a lot the Actuality Professional machine prices to make could be fruitless. However these estimates are considerably in the identical vary, indicating that Apple may pay as much as $1,500 only for the elements and labor.

The determine is smart, contemplating that we anticipate the AR/VR headset to be extra highly effective and complicated than any competitor. The identical Brad Lynch mentioned the Meta Quest Professional prices about $800 to make. Meta offered it initially offered it for $1,500 earlier than reducing the value to $999.

Additionally of notice is the iPhone BoM. As 9to5Mac factors out, the iPhone 14 Professional max prices $500 to fabricate, however Apple sells it beginning at $1,099.

As a lot because it pains me to confess it, contemplating that I wish to purchase the AR/VR headset, a $3,000 value for the Actuality Professional headset is smart if the $1,500 BoM estimate is correct. A less expensive Actuality Professional mannequin may come out in 2025, however I received’t wait that lengthy.