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Apple mixed reality headset: this is how much it costs to manufacture

by Milan
May 19, 2023
Apple mixed reality headset

Black Asian woman wearing VR headset goggle to get excite experience of virtual reality technology, Digital 3d simulation entertainment technology at home, VR Simulator for Education from home concept

Apple is about to unveil its first mixed reality headset. According to rumors, the device will have a price tag of around 3,000 US dollars due to its advanced technology and complex manufacturing process. But how much does it actually cost Apple to produce each individual device? Chinese analysts estimate the manufacturing costs of the Apple Mixed Reality Headset at over 1,500 US dollars per unit. Compared to the competition, Apple's costs are higher, which is due to high-quality components.

The bill of materials for the upcoming Apple Mixed Reality headset was revealed in a report of Wellsenn XR has been published. The components are expected to cost Apple around 1,400 US dollars, and if shipping costs are taken into account, this results in a price of 1,600 US dollars per device. The headset will be equipped with the powerful M2 chip, 12 GB RAM, 512 GB SSD storage, WiFi 6 and Bluetooth 5.3. The most expensive components are the OLED displays and the camera with 14 lenses. Compared to other headsets available on the market, the manufacturing costs of the Apple Mixed Reality headset are significantly higher. Brad Lynch, an expert on XR devices, has found that the manufacturing costs of the Meta Quest Pro are only half as high as those of the Apple headset.

Apple Mixed Reality headset: A new dimension of reality opens up

Meta has lowered the price of its headset from an initial 1,500 US dollars to 999 US dollars and thus earns around 250 US dollars per headset. Apple, however, has a different strategy. The company is apparently not planning to give up its profit margin. According to a Bloomberg report, Apple is even considering selling the headset at a loss in order to be as competitive as possible. This is not an unusual approach for Apple, which has used similar tactics with other products. Although the manufacturing costs are high, Apple has invested heavily in the development of the headset. According to reports, the company has spent over 1 billion US dollars per year on development.

The next evolutionary step in VR technology?

Nevertheless, sales expectations have been revised downwards and analysts assume that Apple will only sell around 500,000 units of the headset in the first year. It remains to be seen whether customers are prepared to spend so much money on a new product category that has so far shown little appeal. Although Apple has invested heavily in development, sales expectations for the headset remain cautious. The future of the Apple Mixed Reality headset is therefore still uncertain and only time will tell. It remains exciting to see how the market and customers will react to Apple's new product. (Photo by Chatchai.wa / Bigstockphoto)

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