Photo courtesy of Apple

When Apple announced the price of the Vision Pro Headset, the company also revealed its intentions to make this experience accessible to the elite few who can afford it. Priced at $3499, Vision Pro has stirred mixed sentiments from the market, most of who think the device is overpriced.

Apple’s Luxury AR Experience

The headset which has both Virtual Reality (VR) and Augmented Reality (AR) capabilities is comparable to Meta’s Quest Pro, which is currently priced at $1000, making Vision Pro more than three times more expensive despite the fact that it is more advanced than the rival headsets.

Before revealing the price, Mike Rockwell, VP of AR and VR at Apple, said: “If you purchased a new state-of-the-art TV, surround-sound system, powerful computer with multiple high-definition displays, high-end camera and more, you still would not have come close to what Vision Pro delivers.”

While users expected the device to be pricey, few foresaw that it would be this pricey. The price reveal was met with a loud gasp from the crowd at the Worldwide Developer Conference (WWDC).

Given that the device has the ‘Pro’ label, it’s likely that the company is developing a less powerful version with fewer features, but at a much lower price. If Bloomberg’s reports are accurate, then the tech giant “is already working on a more affordable model to make this new product available to more people.”

To pull this off, Apple will have to downgrade some of the technology and components employed in the Vision Pro or swap the most expensive components for cheaper ones.

The most expensive components in the headset are the dual Apple silicon chips, the dual 4K micro-OLED virtual reality screens, and the camera and sensor array.

To create a cheaper version with reduced performance, Apple might use lower-quality displays, a chip similar to that in iPhones or an older Mac chip, and fewer cameras. The company could also simplify the strap by removing the speakers in the Vision Pro and using AirPods for spatial audio instead.

Also, switching to a physical rather than automatic Interpupillary Distance (IPD) adjustment, which adjusts the distance between the user’s eyes, and eliminating features like the 3D camera will cut down the cost further.

Nonetheless, with the downgrade of components and features, it is expected that Apple will retain the eye- and hand-tracking mechanism, as well as the external EyeSight screen that displays the wearer’s eyes which are the company’s competitive edge over other headsets in the market.

The affordable version is expected to debut in 2026, which is a long period of time during which competitors might have upped their devices and captured the market segment. While the market waits, is the current Vision Pro price tag justified?

Is Apple’s Vision Pro Priced Justifiably or Overpriced?

According to an alleged bill of materials disclosed by leaker Revegnus, the components used to build a single unit of the Vision Pro may actually be costing Apple just $1,509. The bill shows that the Sony dual inner displays, which are the most expensive components, cost $350 each.

According to the leak, the cost of the Apple M2 chip is $120 whereas the price per unit for the headset’s body, which includes its cloth strap and aluminum frame, is $120. Since Apple outsources most manufacturing and assembly services, the cost of assembly by manufacturing partner LuxShare is $130 per unit.

The cost of all the additional parts such as RAM, storage, Wi-Fi and Bluetooth chips, display lenses, and external cameras, help to bring the overall cost to slightly over $1,500.

Important to note is that this bill is not the official bill of materials by Apple but is instead a compilation of known components and leaked or already public prices. As such, given Apple’s position and the ties it already has with suppliers, it’s plausible that the company is paying less.

If the estimated cost is true, then Apple may be asking for too much for the headset. However, this isn’t unusual for many consumer electronics. The majority of products that are rarely sold at cost or a loss are video game consoles, and since Apple is a business, it needs to make money in order to operate.

Additionally, the bill of materials doesn’t include the tremendous cost of the many years of research it did to design the product. As it continues to develop and release new headsets (assuming they perform well), they will almost certainly get cheaper.

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