The manufacturing cost of the Apple Headset exceeds $1,500 per unit

It is rumored that Apple will finally unveil its first mixed reality headset next month at WWDC 2023. According to the latest rumors, the device will cost around $3,000 due to its advanced technologies and complex manufacturing process. But how much will Apple spend to manufacture each unit? Chinese analysts believe the speaker will cost Apple $1,500 a unit.

The manufacturing cost of Apple headphones is higher than that of competitors

A report from Wellsenn XR details the bill of materials (BoM) for Apple’s upcoming mixed reality headset. If the report is correct, the components cost Apple about $1,400. When shipping costs are added, the price per unit comes to $1,600. The headset is expected to be equipped with an Apple M2 chip, 12GB of RAM, 512GB of SSD storage, and Wi-Fi 6 and Bluetooth 5.3 for fast wireless connectivity.

As detailed by XRDailyNewsThe most expensive components are OLED screens, which are expected to cost between $280 and $320 a unit. The 14-lens camera arrangement isn’t exactly cheap either, costing around $160.

But how does this compare to other headphones already on the market? Brad Lynchan expert on XR (Extended Reality) devices, noted the cost of manufacturing Meta Quest Pro It is half the price of an Apple headset. The Meta headset launched at $1,500, but the price was later reduced to $999. This means that Meta earns about $250 per unit of its headphones.

On the other hand, Apple is known for not giving up on its profit margin. a bloomberg The report said that the company is studying selling the device at cost to make it competitive and attractive, but the idea was then canceled. Apple spends about $500 to manufacture the iPhone 14 Pro Max, which starts at $1,099 in stores. This is in line with rumors that the headset will cost customers around $3,000.

An expensive product with an uncertain future

Sources familiar with the matter say that Apple spends more than $1 billion a year developing its headphone. At the same time, the company lowered its sales forecast for the product. Analysts believe that Apple will sell no more than 500,000 units of headphones in its first year.

Of course, based on this report, we can also assume that Apple is indeed building a more premium headset with more advanced technologies than its competitors. But only time will tell if customers are actually willing to spend that much money on a new product category that has not yet proven very attractive.