If there’s one persistent rumor about Apple’s upcoming AR headset, it’s the price tag. Since we heard about it, reports have pegged its 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 the actual price could be significantly lower.
As reported by XRDailyNews, production of Apple’s headset will cost around $1,500, including several high-end components costing more than $150 each. The total cost was confirmed by multiple sources in the supply chain in China, though the site notes that some terms “may not directly correspond to their conventional meaning.”
- Dual M2 processors: $120-$140
- Two micro OLED screens: $280-$320
- 14 cameras: $160
- Optical-mechanical lens system and mounting: $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: $22-$25
- Microphone: $21-$22
- Speakers: $16-$18
- PCB+FPC: $40-$45
- Storage: $40-$45
- WiFi/Bluetooth/etc.: $60-$70
- Cooling module: $70
- Additional accessories: $30-$40
Add it all up and you have a total of about $1,500. Of course, the bill of materials does not represent the full cost, which also includes production, shipping, distribution and other factors, but it shows that the AR headset will be a very sophisticated device. For comparison, the manufacturing cost of the Meta Quest 2 is said to be around $750.
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 the headset. But even tacking $250 per unit brings the total price to $1,750. If you factor in Apple’s 40 percent gross margins, that would put the MSRP at about $3,000.
But a Bloomberg report this week claims that Apple could be selling the headset “at cost” and has even considered selling it at a loss to generate revenue. That means the headset could cost just $1,999, which practically seems like a steal compared to the rumored $2,999 price tag.
We should know in a few weeks. The WWDC keynote begins on June 5, just two weeks from Monday.