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How much does it cost Apple to manufacture the Vision Pro which it sells for $3,500?

Starting at $3,500, or roughly Rs 2.90 lakh, the Apple Vision Pro certainly offers little value for money. Even for some of Apple’s most ardent fans, justifying the cost of the Vision Pro would be a challenging task. It begs the question, then: how much does Apple spend making their mixed reality headset?

A lot.

According to research firm Omdia, the estimated cost for Apple to manufacture the Vision Pro headset, also known as the “bill of materials,” is approximately $1,542.

This includes the cost of various hardware components, with the most expensive being the 1.25-inch micro-OLED displays, sourced from Sony, which cost $228 each.

Since each Vision Pro headset incorporates two of these displays, the total cost of the displays themselves is $456.

The most expensive components are the M2 and R1 chips following the displays. The R1 chip, specifically designed for processing input from cameras, sensors, and microphones, streams images to the displays within 12 milliseconds.

It’s important to note that the cost estimation provided by Omdia only covers the materials used in manufacturing the Vision Pro and does not include additional expenses such as assembly, packaging, or distribution.

Moreover, Apple also incurs significant costs in the product’s research and development, sales, and marketing activities.

Considering the $3,500 retail price of the Vision Pro, the estimated manufacturing cost of $1,542 provides insight into the profit margin Apple generates from the sale of each unit.

However, it’s essential to recognize that these figures represent estimates and may vary based on factors such as volume production and supplier negotiations.

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