The estimated cost for developing the Apple Vision Pro is as follows.

Priced at $3,499, Apple’s latest virtual reality headset, the Vision Pro, is scrutinized in research, revealing that the components within the advanced device are estimated to cost approximately $1,500. This breakdown highlights the expenses associated with the premium parts incorporated into the headset.

Topping the expense list are the micro OLED displays, recognized as the priciest component according to estimates by research firm Omdia, as highlighted in a CNBC report. Each of these 1.25-inch displays, renowned for their high resolution, is projected to cost Apple $228, sourced from Sony. With a pair of displays featured in each headset, the total expenditure on screens alone amounts to $456.

Distinguished by a pixel density exceeding 3,000 pixels per inch, in contrast to the iPhone 15’s 460 ppi screen, these micro OLED displays enable sharper and more realistic visuals. Notably, the compact OLEDs utilize a silicon backplane for densely packed pixels, deviating from the conventional use of glass. The production of these cutting-edge screens necessitates advanced manufacturing capabilities.

Omdia analyst Jay Shao emphasized Apple’s substantial influence on the display industry and anticipates a decline in costs for the Vision Pro displays in the upcoming years as more suppliers enter the competitive landscape.

Following the displays, the subsequent most expensive components are the processors – Apple’s newly introduced M2 chip and the bespoke R1 chip. The R1 chip, purposefully crafted by Apple, is tailored to manage all the necessary video, camera, sensor, and input processing essential for augmented and virtual reality applications.

While these chips significantly contribute to the overall cost, they play a pivotal role in delivering the immersive experience envisioned by Apple for the Vision Pro.