apple vision pro

Apple’s Pricey New Gadget – How Much Does It Really Cost to Make?

Apple’s long-awaited Vision Pro mixed reality headset doesn’t come cheap, with a staggering $3,500 price tag. But how much does this futuristic gadget actually cost to make? New research reveals that the components inside add up to just $1,500 – meaning Apple pockets a hefty $2,000 profit on each one sold.

The most expensive parts are the headset’s pair of ultra high-resolution displays, supplied by Sony, which cost Apple $456. These miniaturized screens are key to creating crisp, immersive visuals by directly displaying 3D images in front of your eyes.

After the displays, the next priciest components are Apple’s own custom-designed M2 and R1 chips, costing around $240 combined. These state-of-the-art processors pack the power needed for advanced graphics and AI capabilities.

Add in sensors, cameras, speakers and other electronics, and the total bill of materials rings in at $1,542. Compared to VR gadgets from Sony, Meta and Huawei, Apple spends a bigger proportion of production costs on visual tech – around 30% for its tiny OLED displays.

For a first-generation device using trailblazing technology like this, the high ticket price is no surprise. As Apple refines and streamlines manufacturing, future iterations of its reality headset could become more affordable.

But for now, that huge gap between building costs and retail price gives Apple a sizable profit margin as it pioneers this new computing paradigm. The hefty price tag makes Vision Pro an investment – but one Apple hopes will pay off by cementing its leadership in molding the future of immersive tech.