What does Apple's VR Vision Pro cost, is it worth the price, and will it sell?

June 8, 2023  16:35

Apple's first mixed reality device, the Vision Pro, attracted a lot of attention, primarily because of its high price; it costs $3,499.

What is the cost of this device and will it sell?

Was the Vision Pro supposed to cost $700?

A fan of Meta's Metaverse, nicknamed Jiople1, said in an interview with the Financial Times that the Vision Pro's fair price is $700. According to him, the Apple device looks great, but hardly anyone will pay $3499 for it.

"I'm willing to pay about $700 [for a similar Apple device]," he said.

Jiople1, from Texas, USA, also said he uses an Oculus VR headset once a week. In his opinion, Apple's augmented reality device will be better than Meta's "virtual reality" device. In any case, the Apple device is too expensive, and many users share this opinion.

Does the Vision Pro costs about $1,500?

Wellsenn XR analysts, in turn, calculated the cost of the device's components in order to understand its approximate cost.

The most expensive part of the Vision Pro is the two 1.3-inch Sony OLED displays. One such screen costs $350, and a pair costs $700, respectively. The next most expensive component is its assembly, at $130. The body of the device costs about 120 dollars. The Apple M2 processor costs just as much. Analysts value the new Apple R1 co-processor at $60.

The device's Samsung UFS 4.0 512GB RAM costs $20, while Samsung and SK hynix's 12GB LPDDR5 RAM device costs $30. Wi-Fi 6 and Bluetooth 5.3 modules from Broadcom and Skyworks cost $6 and $2, respectively. PMIC power components are priced at $4.

An external LG-made hybrid AMOLED display that can show the user's eyes to others costs $30, while a set of optical lenses costs $60. The price of two IPD modules is $20.

A bundle of Sony and Foxconn cameras, motion-tracking sensors, and a vibration motor cost about $131. The cooling system, circuit board, power cord and some other components add another $34 to the price of the device. An internal battery with a capacity of about 500 mAh costs $3, and an external battery with a capacity of about 10,000 mAh costs $15. Microphones cost $3. Retail packaging, battery storage bag and other parts cost about $23.

So the Apple Vision Pro costs just over $1,500. However, it should also be taken into account that Vision Pro has been developed for seven years, and more than 1 billion dollars have been invested in its development annually, and thousands of engineers have worked on it. And these investments were also included in the price of the device.

And will Apple be able to sell the Vision Pro?

Analysts at TrendForce predict that Apple will be able to sell about 200,000 units of the Vision Pro in 2024, which is less than the company's other popular devices.

"Market response will largely depend on further consumer investment in Vision Pro models and Apple's ability to offer compelling day-to-day features that will drive rapid growth in the overall augmented reality market," TrendForce said.  

Moreover, the high price of Vision Pro and the presence of an external power supply battery, which works for only two hours on a single charge, will make the novelty less attractive to consumers.

Experts also noted that the device still clearly lacks applications intended for ordinary users, which makes it more attractive to developers and corporate users. Therefore, most likely, the device will not be widely popular among consumers.

Apple introduced the Vision Pro mixed reality device on the evening of June 5, as part of the Worldwide Developers Conference 2023.

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