It’s no secret that Apple Vision Pro is pricey, starting at $3,500 for 256GB of storage. New data from research firm Omdia puts that number into context, estimating that Apple’s cost to build Vision Pro – or its “bill of materials” comes in at just over $1,500.

As reported by CNBC, Omdia’s research estimates that Vision Pro’s 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 the displays that go inside the headset, one for each of the user’s eyes.

According to Omdia, Apple is paying $228 for each of those displays from Sony, putting the per-headset cost at $456.

Following the displays, the second most expensive Vision Pro components are the two chips, the M2 and the all-new R1. Apple says that the R1 chip is specifically dedicated to process input from the cameras, sensors, and microphones, streaming images to the displays within 12 milliseconds.

As always, it’s important to keep the bigger picture in mind when looking at cost numbers like these – particularly for a first generation product like Vision Pro. Apple Vision Pro is also a relatively low-volume product for Apple, with estimates suggesting Apple will ship around 400,000 units in 2024.

Apple works closely with its suppliers and oftentimes finalizes component costs well ahead of time. These numbers also only cover materials and don’t include other production costs like assembly, packaging, or distribution. Apple has, of course, spent huge amounts of money on research and development, sales, and marketing.

Source: 9to5mac