No one can agree on what the Apple VR Headset will cost to make

Posted:
in Future Apple Hardware edited May 2023
Multiple industry reports place the Apple VR Headset bill of materials between $1,290 and $1,509, but differing information between the sources throws it all into question.

Apple's VR Headset will be expensive
Apple's VR Headset will be expensive


Early estimates suggested Apple's VR Headset would cost around $3,000 retail. That would account for the research and development, bill of materials, shipping, and some margin for profit.

Information gathered by XR Daily News shows differing reports for the bill of materials. When discussing how much a product will cost on store shelves, small variations in the bill of materials can make a big difference, so the $200 swing is notable.

One report, from Minsheng Electronics, suggests that the total cost of the headset materials adds up to $1,400. It even adds in that a conservative shipping estimate places the cost at $1,600. The report also notes that Apple allegedly expects over 400,000 to be built in late 2023.

A document from Wellsenn XR suggests the total bill of materials is $1,509. It has slightly different names for some of the components but a similar set.

A third report contains information from two separate sources ranging the bill of materials between $1,209 and $1,300. These are notably lower than the other estimates provided, but may not include shipping costs.

So, data from four different sources places the bill of materials between $1,209 and $1,509 -- assuming these are all estimated without shipping. Apple does account for research costs when determining the final price, and a margin for profit does need to exist, so a $3,000 starting price isn't out of the question.

Some have seen these numbers and thrown out lower estimates, but conservatively, $2,000 is the absolute minimum. That is if any of these reports are accurate, since technically only one can be.

Apple is expected to announce its VR headset during WWDC in June. It would run xrOS and bring VR to Apple's ecosystem.

Read on AppleInsider

Comments

  • Reply 1 of 17
    " That is if any of these reports are accurate, since technically only one can be."

    And now they know which leaks came from where...
    watto_cobra
  • Reply 2 of 17
    applesauce007applesauce007 Posts: 1,701member
    I am expecting Star Trek Holodeck Technology.

    I mean let Steve Jobs join Tim Cook to launch this product in an AR / VR  Holodeck and price will not matter.
    GrannySmith99pulseimageswatto_cobra
  • Reply 3 of 17
    How can an estimate of the cost to build Apple's VR Headset  even be a possibility when it is still only a rumor. Nobody has even seen it! A total waste of time.
    twolf2919retrogustothtwatto_cobradesignrwilliamlondon
  • Reply 4 of 17
    williamhwilliamh Posts: 1,036member
    How can shipping be $200?
    watto_cobrawilliamlondon
  • Reply 5 of 17
    twolf2919twolf2919 Posts: 125member
    The author neglected to mention the rumor that Apple might sell the headset 'at cost' to gain adoption more quickly.  If they do and the cost to Apple is $1500, there might actually be some interest.  Emphasis on *might* since Apple has never produced a device at such high cost with such limited use time.  Yes, people pay up to $1500 for an iPhone - but you can use that all day, in all sorts of interactions.  Yes, people pay $3500 for a MacBook Pro - but, again, this can be useful all day.  And that is what Apple AR glasses would have been: a tool you can use all day in all sorts of ways.  I would have gladly forked out $1500 for a sleek set of glasses that enhanced experience and productivity all day.

    Instead, we're getting this big honker of a "headset" that'll definitely be too ugly to wear all day and, most likely, too heavy too.  Oh, and as if the headset wasn't ugly enough, you may even get to wear/carry a separate batter - on your belt?

    This headset, as rumored, will never see commercial success.  Apple will sell a few hundred thousand to developers and tell them "go pretend these are glasses and develop software for the AR glasses we'll be delivering in a few years".
    watto_cobrawilliamlondonroake
  • Reply 6 of 17
    During the keynote, Cook will show a $2,999 slide, then have $499 plummet from heavens to smash it but good. 
    retrogustowatto_cobrawilliamlondonroake
  • Reply 7 of 17
    jayweissjayweiss Posts: 74member
    I don’t care about estimates of cost to build the headset. I am only interested in how much it will cost to buy one and the level of functionality it will provide. 

    So far none of the VR/AR product out there provide any real benefit for the “average user”. We will see how Apple does with this. 
    watto_cobra
  • Reply 8 of 17
    alandailalandail Posts: 757member
    How can an estimate of the cost to build Apple's VR Headset  even be a possibility when it is still only a rumor. Nobody has even seen it! A total waste of time.
    It's in production, apple knows the cost to build.
    watto_cobragrandact73
  • Reply 9 of 17
    eightzeroeightzero Posts: 3,097member
    jayweiss said:
    I don’t care about estimates of cost to build the headset. I am only interested in how much it will cost to buy one and the level of functionality it will provide. 

    So far none of the VR/AR product out there provide any real benefit for the “average user”. We will see how Apple does with this. 
    "We will see" is pretty accurate. I'm not enthusiastic about this product. Based on the rumors at comparable points in time, I was exactly the opposite on the iPad and Apple Watch. 

    I don't want a headset. I want an Airport. If Apple announced a comparable mesh system with a built in VPN, I'd pay $1000 and sign up for a $50/yr VPN from them. 
    watto_cobraJapheywilliamlondonroake
  • Reply 10 of 17
    williamhwilliamh Posts: 1,036member
    It might not be Apple’s plan but this thing could see good success if it provides a novel experience for watching porn.  
    williamlondon
  • Reply 11 of 17
    JapheyJaphey Posts: 1,770member
    eightzero said:
    jayweiss said:
    I don’t care about estimates of cost to build the headset. I am only interested in how much it will cost to buy one and the level of functionality it will provide. 

    So far none of the VR/AR product out there provide any real benefit for the “average user”. We will see how Apple does with this. 
    "We will see" is pretty accurate. I'm not enthusiastic about this product. Based on the rumors at comparable points in time, I was exactly the opposite on the iPad and Apple Watch. 

    I don't want a headset. I want an Airport. If Apple announced a comparable mesh system with a built in VPN, I'd pay $1000 and sign up for a $50/yr VPN from them. 
    I’m completely with you on this. In my dream scenario, they would add AirPort technology to HomePods and Apple TV’s, giving them extra value as mesh satellites and only requiring a new base station to tie everything together. 
    designreightzerowilliamlondonroake
  • Reply 12 of 17
    eightzeroeightzero Posts: 3,097member
    Japhey said:
    eightzero said:
    jayweiss said:
    I don’t care about estimates of cost to build the headset. I am only interested in how much it will cost to buy one and the level of functionality it will provide. 

    So far none of the VR/AR product out there provide any real benefit for the “average user”. We will see how Apple does with this. 
    "We will see" is pretty accurate. I'm not enthusiastic about this product. Based on the rumors at comparable points in time, I was exactly the opposite on the iPad and Apple Watch. 

    I don't want a headset. I want an Airport. If Apple announced a comparable mesh system with a built in VPN, I'd pay $1000 and sign up for a $50/yr VPN from them. 
    I’m completely with you on this. In my dream scenario, they would add AirPort technology to HomePods and Apple TV’s, giving them extra value as mesh satellites and only requiring a new base station to tie everything together. 
    In a perfect world, this and the new AppleTV has a coax cable on it to feed internal OTA ATSC 3.0 next gen tuners. But that is not ever happening.
    williamlondon
  • Reply 13 of 17
    michelb76michelb76 Posts: 659member
    How can an estimate of the cost to build Apple's VR Headset  even be a possibility when it is still only a rumor. Nobody has even seen it! A total waste of time.
    Those articles are perfect short-term SEO content. A few weeks from now nobody is talking about the BOM, and these sites got a nice boost.
    williamlondon
  • Reply 14 of 17
    roakeroake Posts: 821member
    How can an estimate of the cost to build Apple's VR Headset  even be a possibility when it is still only a rumor. Nobody has even seen it! A total waste of time.
    In your world, there is no such thing as R&D, a new product doesn’t exist, there is nothing to leak, then suddenly WHOOSH!  On stage during the event, a new product suddenly teleports in out of nothingness into the hands of the presenter, and luckily so do the next several slides, website updates, and dialog for the product.  Apple is just as surprised as we are every year when their new product appears.  They were sad last year when the magical teleporters didn’t deliver them a new AR/VR product.
  • Reply 15 of 17
    roakeroake Posts: 821member
    Japhey said:
    eightzero said:
    jayweiss said:
    I don’t care about estimates of cost to build the headset. I am only interested in how much it will cost to buy one and the level of functionality it will provide. 

    So far none of the VR/AR product out there provide any real benefit for the “average user”. We will see how Apple does with this. 
    "We will see" is pretty accurate. I'm not enthusiastic about this product. Based on the rumors at comparable points in time, I was exactly the opposite on the iPad and Apple Watch. 

    I don't want a headset. I want an Airport. If Apple announced a comparable mesh system with a built in VPN, I'd pay $1000 and sign up for a $50/yr VPN from them. 
    I’m completely with you on this. In my dream scenario, they would add AirPort technology to HomePods and Apple TV’s, giving them extra value as mesh satellites and only requiring a new base station to tie everything together. 
    I love this idea.
  • Reply 16 of 17
    roakeroake Posts: 821member
    twolf2919 said:
    The author neglected to mention the rumor that Apple might sell the headset 'at cost' to gain adoption more quickly.  If they do and the cost to Apple is $1500, there might actually be some interest.  Emphasis on *might* since Apple has never produced a device at such high cost with such limited use time.  Yes, people pay up to $1500 for an iPhone - but you can use that all day, in all sorts of interactions.  Yes, people pay $3500 for a MacBook Pro - but, again, this can be useful all day.  And that is what Apple AR glasses would have been: a tool you can use all day in all sorts of ways.  I would have gladly forked out $1500 for a sleek set of glasses that enhanced experience and productivity all day.

    Instead, we're getting this big honker of a "headset" that'll definitely be too ugly to wear all day and, most likely, too heavy too.  Oh, and as if the headset wasn't ugly enough, you may even get to wear/carry a separate batter - on your belt?

    This headset, as rumored, will never see commercial success.  Apple will sell a few hundred thousand to developers and tell them "go pretend these are glasses and develop software for the AR glasses we'll be delivering in a few years".
    They may also sell them UNDER cost knowing what economy of scale will do for them in the near future, then gradually creep the prices up based on adding features for Pro and Ultra versions.  Remember the original iPad release?  They were far less expensive than projected for a product that no-one could seem to find a strong use-case for.  Now they are used everywhere.  The original top of the line iPhone was $400 (briefly $600, then the price cut and Jobs gave early adopters rebates).

    It does seem fairly likely these headsets will have a separate battery connected by some new flavor of MagSafe.  If so, I don’t like this at all.  I HOPE this was just an early employee prerelease test version that leaked.

    Aren’t we overdue for some battery technology advances making it into consumer-grade devices?


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