How much does Apple cost to make its headset?

Despite the various disagreements and internal doubts, Apple is preparing to present its first viewer during WWDC on June 5th. According to the latest rumors, the device will cost around $ 3,000, but how much will Apple spend to produce each unit?

Chinese analysts they believe That the headset will cost Apple about $1,500 per unitfor a production cost higher than that of competitors.

A report from Wellsenn XR details the bill of materials (BoM) for Apple’s upcoming mixed reality headset. According to these data, the components cost Apple about $ 1,400. When shipping costs are added, the price per unit adds up to $1,600. The headset is expected to feature Apple’s M2 chip, 12GB of RAM, 512GB of SSD storage, Wi-Fi 6, and Bluetooth 5.3 for a fast wireless connection.

As detailed in these hours, the most expensive components are the display OLED, which are expected to cost between $280 and $320 per unit. The 14-lens camera isn’t exactly cheap either, costing around $160.

But how does this cost compare to other headsets already available on the market? Brad Lynch, an expert on XR (extended reality) devices, noted that the production cost of the Meta Quest Pro is half the price of Apple’s headset. Meta’s device launched for $1,500, but the price was later reduced to $999. That means Meta makes about $250 per unit of its headset.

Apple, on the other hand, is known for not giving up on its profit margin. The company would in fact have decided to sell the device at its production cost, rather than selling it at a loss as initially considered. To give just a few examples, Apple spends around $500 to produce an iPhone 14 Pro Max, which starts at $1,099 in the US. This lines up with rumors that the headset will cost customers around $3,000. Of course, production costs do not include research, development, marketing and other costs.

Based on this report, we can assume that Apple is indeed building a much more premium headset with more advanced technologies than its competitors. But only time will tell if customers are actually willing to spend that much money on a new product category that, so far, hasn’t turned out to be very attractive.