If there’s one persistent rumor about Apple’s upcoming AR headset, it’s the very high price tag. Ever since we started hearing about it, reports have pegged the MSRP at $3,000 or higher, which would make it one of the most expensive non-Mac devices in Apple’s history. However, a new report suggests that while it wont be cheap, the actual price might be significantly lower than reported.
As reported by XRDailyNews, Apple’s headset will cost approximately $1,500 to manufacture, which includes several high-end components that are more than $150 each. The total cost was corroborated by multiple supply-chain sources in China, though the site notes that some terms “might not directly correspond to their conventional meanings.”
- Dual M2 processors: $120-$140
- Two micro OLED screens: $280-$320
- 14 cameras: $160
- Optical-mechanical lens system and assembly: $70-$80
- Rearview mirror: $13-$15
- Pupillary distance adjustment module: $30-$35
- 3D sensor part: $80-$90
- Metal middle frame: $95
- Appearance parts: $15-$20
- External battery pack: $22-$25
- Microphone: $21-$22
- Speakers: $16-$18
- PCB+FPC: $40-$45
- Storage: $40-$45
- WiFi/Bluetooth/etc.: $60-$70
- Cooling module: $70
- Auxiliary accessories: $30-$40
Add it all up and you’ve got a total of around $1,500. Of course, the bill of material doesn’t represent the entire cost, which also includes production, shipping, distribution, and other factors, but it shows that the AR headset will be a very high-end device. By comparison, the manufacturing cost of the Meta Quest 2 is reportedly around $750.
So let’s do some math. The iPhone 14 Pro Max costs Apple roughly $475 to make and sells for $1,100. Assuming a 40 percent gross margin, there are about $185 in added costs, which shouldn’t be much higher for the headset. But even if we tack on $250 per unit, that brings the total price to $1,750. If you factor in Apple’s 40 percent gross margins, that would bring the MSRP to right around $3,000.
But a Bloomberg report this week claims Apple could sell the headset “at cost” and has even considered selling it at a loss to generate sales. That means the headset could come in as low as $1,999, which would practically seem like a bargain compared to the rumors of a $2,999 price tag.
We should know in just a matter of weeks. The WWDC keynote kicks off on June 5, just two weeks from Monday.
Author: Michael Simon, Executive Editor
Michael Simon has been covering Apple since the iPod was the iWalk. His obsession with technology goes back to his first PC—the IBM Thinkpad with the lift-up keyboard for swapping out the drive. He's still waiting for that to come back in style tbh.