If there’s one persistent rumor about Apple’s upcoming AR headset, it’s a hefty price tag. 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 won’t be cheap, the actual price could be significantly lower than what’s been quoted.
According to XRDailyNews, Apple’s headset will cost approximately $1,500 to manufacture, which includes several high-end components that cost more than $150 each. The total cost has been confirmed by multiple supply chain sources in China, although the site notes that some terms “may not directly correspond to their conventional meanings.”
- Dual M2 processors. $120-$140
- Two micro OLED screens. $280-$320
- 14 cameras. $160
- Optical-mechanical system and assembly of lenses. $70-$80
- rear view mirror. $13-$15
- Pupil distance adjustment module. 30-35 dollars
- 3D sensor part. $80-$90
- metal frame. 95 dollars
- 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 dollars
- Auxiliary accessories. 30-40 dollars
Add it all up and you get a total of about $1,500. Of course, the bill of materials does not represent the full cost, which also includes manufacturing, shipping, distribution and other factors, but it indicates that the AR headset will be a very high-end device. For comparison, Meta Quest 2 cost about $750 to produce.
So let’s do some math. The iPhone 14 Pro Max costs Apple about $475 to make and retails for $1,100. Assuming a 40 percent gross margin, there’s about $185 in additional costs, which shouldn’t be much higher for a headset. But even if we factor in $250 per unit, that brings the total price to $1,750. If you factor in Apple’s 40 percent gross margins, that puts the MSRP right around $3,000.
But a Bloomberg report this week said Apple could sell the headset at “cost” and even considered selling it at a loss to generate sales. That means the headset could go as high as $1,999, which would seem like a bargain compared to the rumored $2,999 price tag.
We should know in just a few weeks. The WWDC keynote kicks off on June 5th, just two weeks from Monday.