Rumors are circulating that Apple’s highly anticipated AR headset will hit the market with a price tag of $3,000 in the coming months. However, the cost to manufacture this advanced device is expected to be quite substantial, as revealed by the Bill of Materials (BoM) breakdown.
According to a Twitter post by Brad Lynch, recently spotted by XRDailyNews, the estimated BoM for Apple’s AR headset falls within the range of $1,500 to $1,600. Upon closer examination, the breakdown shows a specific figure of $1,509. These estimates were derived from a Chinese report that also provided insight into the expected specifications of the mixed-reality headset.
Based on these figures, it appears that Apple could enjoy an almost 100 percent gross margin per unit sold.
However, when factoring in additional costs such as research and development, marketing, and other variables, the company’s net margin is likely to be significantly lower. While Apple has a reputation for charging premium prices, enabling it to generate billions in quarterly profits, the success of a product also hinges on selling it in large volumes.
Unfortunately, the report suggests that the initial shipment of the AR headset will be relatively limited, expected to reach only between 400,000 and 500,000 units in the second half of the year.
Based on these projections, Apple’s revenue from the headset launch would amount to $1.5 billion, which may not be deemed a commercial success compared to the company’s other highly popular products. Among the individual components, the most expensive ones are likely to be the microLED panels, estimated to cost between $280 and $320.
Following closely behind, the 14-lens camera arrangement ranks as the second most expensive component, priced at $160. Additionally, the two chipsets sourced from TSMC are expected to incur costs ranging from $120 to $140 each.
As for the specifications, the AR headset is rumored to feature the powerful M2 chip, while information regarding the secondary System-on-Chip (SoC) remains undisclosed. Other noteworthy details include 12GB of RAM, 512GB of SSD storage, Bluetooth 5.3, and Wi-Fi 6.
The relatively low shipment volume of the AR headset may contribute to the higher overall BoM cost of $1,500 to $1,600. If Apple were to adopt a strategy focused solely on volume, it could potentially reduce the pricing by a significant margin.
However, Apple has a different plan in mind to address this concern. In 2025, the company intends to launch a more affordable successor to the AR headset, which will be offered alongside a premium version of the device.
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