Apple Mixed-Reality Headset Rumored to Cost ~$1,500 to Manufacture

Apple's mixed-reality headset will cost the company around $1,500 per unit to manufacture, according to a series of reports coming out of Asia (via XRDailyNews).

apple mixed reality headset concept by david lewis and marcus kaneApple headset concept by David Lewis and Marcus Kane

The first report from Minsheng Electronics, providing a detailed breakdown of the cost of each component in the headset, shows a total cost of $1,400. Including shipping, the conservative estimate for the bill of materials (BOM) is around $1,600.

The device's most expensive components are the microOLED displays, which come in at $280 to $320. The next most costly parts are the headset's 14 camera modules, costing $160. The device's two chips, presumably referring to the main M-series SoC and a separate dedicated image signal processor, are believed to cost $120 to $140. Assembly is expected to cost $110 to $120. The firm also expects 400,000 to 500,000 headsets to be manufactured toward the end of 2023, with Apple running a 15-day preparation cycle to stock units.

Another report from Wellsenn XR suggests that the headset will carry a total cost of $1,509, while a separate Chinese report citing two other Asian analysis firms claims that the device's BOM comes to around $1,290 or $1,300, excluding shipping. These reports add that mass production will begin in the third quarter of 2023, which runs from July to September, and that the device may be called "Apple Reality Pro."

XR expert Brad Lynch noted on Twitter that this BOM is around double that of the Meta Quest Pro headset. Including packaging, shipping, and marketing, the headset's total cost is likely well below its rumored retail price of $3,000, but with a much smaller margin than most other Apple products.

Bloomberg's Mark Gurman recently claimed that Apple originally planned to sell the headset at a loss, but has now elected to sell it at its approximate cost. The device is believed to have cost Apple more than $1 billion per year to develop.

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Top Rated Comments

senttoschool Avatar
14 months ago
This thing is DOA. Meta has all but given up on VR. Microsoft exited its HoloLens investment as well. Even Google just recently decided to cancel their entire Google Glasses project (remember that?).

Wallstreet investors now see VR as a huge negative on tech stocks. In 2021, releasing this thing would have probably boosted Apple's stock. In 2023, this will drag Apple's stock down.

People refer to the Apple Watch as a device that took a few generations to become popular. But we've had a century of demand for a wearable device on your wrist. The Watch had a huge market. VR has a tiny market in comparison. If Apple doesn't sell enough, I can easily see them canceling the project after 2-3 generations.
Score: 26 Votes (Like | Disagree)
DBZmusicboy01 Avatar
14 months ago
0nlyFans will look amazing on them.
Score: 25 Votes (Like | Disagree)
Robert.Walter Avatar
14 months ago

This thing is DOA. Meta has all but given up on VR.
Its exactly because meta is run like a cartoon caricature of a kindergarten fiefdom project, I think they are a v poor proxy as to what such tech can do and be useful for. (Similar for google glass.)
Score: 21 Votes (Like | Disagree)
MayaUser Avatar
14 months ago
$3000 seems cheap for what it has
Score: 18 Votes (Like | Disagree)
klasma Avatar
14 months ago

0nlyFans will look amazing on them.
And only fans will buy them.
Score: 18 Votes (Like | Disagree)
neuropsychguy Avatar
14 months ago
If these component cost estimates are true, my guesses that it would be under $2000 are wrong (does that make me an analyst? I can guess like anyone else). It has to be close to $3000 for Apple to break even including R&D, support, etc.

Depending on features and function, I’m interested in this for an educational setting. It would be perfect for one of my courses.
Score: 13 Votes (Like | Disagree)