Apple’s MR glasses, Vision Pro, cost $1,500 and half of the cost is attributed to the screen

Apple's Vision Pro MR glasses cost $1,500 with half of the cost attributed to the screen

At the just-concluded WWDC 2023, in addition to software updates, Cook also brought us many hardware chips, such as the new 15-inch MacBook Air, the new Mac Pro, and the highly anticipated Apple Vision Pro.

Among the Weibo hot search terms related to the Apple conference, the most discussed is also about Apple’s first VR product. One of the search terms, “Is the $3,499 Apple VR headset worth buying?”, ranked ninth on the hot search list. It can be seen that everyone is somewhat “scared” by the high price of this product. So is the price of Apple’s Apple Vision Pro too high or justified? A cost breakdown of the Apple VR headset circulating online shows that its total cost is $1,509, or about 10,738.5 yuan.

The hardware of Apple’s VR headset consists of 10 parts: computing and storage ($250), display ($730), optics ($80), interaction sensors ($121), structural components ($137), connectors ($17), batteries ($18), acoustics ($11), packaging accessories ($15), and ODE/OEM ($130).

Among them, the most expensive component is its display, which costs $730 for one external screen and two internal screens, accounting for almost 50% of the cost, with the external screen costing $30, provided by LG’s flexible AMOLED screen, and the internal screen provided by Sony’s 1.3-inch silicon-based OLED, costing $350 each.

As the most expensive part in the cost, the silicon-based OLED inner screen has significant advantages in virtual reality (VR) and augmented reality (AR) headsets. First, thanks to the fact that each pixel of silicon-based OLED can self-illuminate, there is no need for an external light source, so it can provide excellent contrast and rich colors. Secondly, the pixel density of silicon-based OLED is higher, which can make the headset device display clearer images. Finally, the response speed of silicon-based OLED pixels is extremely fast and will not have ghosting and other phenomena, which is very important for the user experience of the headset device. In addition, silicon-based OLED is relatively energy-saving, can be made very thin, and can be bent to a certain extent, which is one of the reasons why Apple Vision Pro is comfortable to wear.

Apple Vision Pro’s second highest cost is the computing and storage part, which costs $250. Unsurprisingly, Apple still uses its own chips in the headset. The main processor of this headset uses the Apple M2 series, costing $120, and the co-processor is also Apple’s own vision image processing chip, costing $60. The ROM uses Samsung/Kioxia’s UFS4.0 512G, costing $20, and the RAM uses Hynix/Samsung’s LPDDR5 12G, costing $30. These mainly account for the major expenses in the computing and storage part, while other items such as WiFi SIP, BLE, and PMIC are priced at less than $10 each.

As for the interaction sensors, due to the special nature of the headset device, more sensors are required, so even though the unit price of the sensors is not high, the cost of Apple Vision Pro in this area has reached $121, including four 6DOF tracking components, two VST cameras, two eye tracking components, two face tracking components, two torso tracking components, one gesture tracking component, one TOF component, one IMU component, and two vibration motors.

As a structural component of the device as a whole, Apple Vision Pro’s cost in this area is $137, of which the cost of the middle frame, shell, and some carbon fiber/titanium alloy materials accounts for $120, and the remaining $17 is spent on heat dissipation modules, sealing tapes, and foams.

Among the remaining cost expenses, the cost incurred by Luxshare Precision Manufacturing is also in the three-digit range, while the other parts are scattered around the two-digit range.

Overall, the cost of Apple’s headset device still adheres to Apple’s pricing strategy. Moreover, the cost of the display alone in Apple Vision Pro exceeds the selling price of mainstream VR all-in-one products in China, and the total cost of over ten thousand dollars is also very close to the market selling price of the HTC VIVE PRO 2 professional edition kit.

As a leader in the industry, Apple has been able to lead the market trend and open up new sub-sectors and product markets with almost all of its previous products. Faced with the current downturn in the global smartphone market, Apple’s release of the Apple Vision Pro may usher in a golden period of rapid development for the virtual reality industry. Although this industry has existed for some time, whether in market leadership or consumer appeal, Apple is unique.

Although the current price of $3,499 has caused some netizens to have some complaints, this pricing is in line with Apple’s tone from its cost structure and unique software ecosystem. In addition, Apple has always followed a high-end route. The “low-cost” iPhone previously launched by Apple did not have good sales, and from the current size of Apple, consumers are also buying it.

Of course, even if consumers “buy” this product, its price of $3,499 is not affordable for most people. With the gradual improvement of the industry and the reduction of supply chain costs, it is believed that Apple will launch products that are more suitable for the general public. So what do you think about the Apple Vision Pro, which costs $1,509 and is priced at $3,499 as a consumer? Welcome to leave a message below for discussion.

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