Alleged Apple Mixed Reality Headset Material Cost Leaks Out

[T0@st]

Self-described mixed reality nerd, Brad Lynch, has tweeted out several interesting details about Apple's yet-to-be announced VR/AR headset. He has managed to compile information from several sources - mostly reports produced by hardware analysts based in China. His summation of the leaked info states: "The Apple HMD's Bill of Materials (BoM) cost to be about $1500-1600 (USD). This is about double the reported BoM for the (Meta) Quest Pro (which was 800 dollars including the controllers and charging pad)."

Minsheng Electronics's article suggests that 400,000 - 500,000 headset units are set for production in the second half of this year. An operating system with the codename "rOS" is reportedly clashing with Apple's traditional iOS mobile platform, but the author does not provide further information about these compatibility issues. The headset's operating system is supposedly capable of supporting a wide range of games, productivity applications and methods of video communication.




Minsheng's breakdown of Apple's bill of materials for the mixed reality device is also corroborated in part by a similar report, published by Wellsenn XR - although their calculations point to a total of $1509. A rough estimate of the former's list is as follows (via translation):

• Chipset: two pieces in total, $120 -140
• Micro OLED screens: $280-320
• Camera (will carry 14): $160
• Optical-mechanical lens system and assembly: $70-80
• Rearview mirror: $13-15
• Pupillary distance adjustment module: $30-35
• 3D sensor part: $80-90
• Metal middle frame: $95
• Appearance parts: $15-20
• External battery pack: $22 -25
• Microphone: $21-22, Speakers: $16-18
• PCB+FPC: $40-45
• RAM+ROM storage part: $40-45
• Other chipsets such as Wi-Fi, Bluetooth, PMIC, etc. total: $60-70
• Total cooling module: $70
• Other auxiliary accessories: $30-40
• Assembly: $110-120

XR Daily News points out that a third Chinese report has produced a lower estimated BoM - somewhere around $1300, but it is possible that shipping costs were not taken into account. Industry tipsters are predicting that Apple will be targeting a premium market (as is the norm), by setting an MSRP of $3000 - pointing to a potential (near to) 100 percent gross profit margin per unit sold, if the latest material cost rumors are accurate.

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[evernessince]

$3,000 likely means they are targeting business users. At that price tag most regular folk simply won't be able to afford it. Even as a VR enthusiast myself, I'd have a hard time justifying that much for a HMD. Particularly one that is starting from scratch when it comes to it's app ecosystem.

 

[Ferrum Master]

Those prices are definitely waaaaay off.

I call this BS.

 

[kapone32]

Looks like these will be focused for the Medical industry and maybe Mining.

 

[Bomby569]

Those prices are definitely waaaaay off.

I call this BS.

these are the prices you and me would get quotes for building a one unit prototype. That can't possible be real.

 

[mechtech]

"The Apple HMD's Bill of Materials (BoM) cost to be about $1500-1600 (USD)..................so 3x for apple markup/profits??

That assembly price though.........................crazy low

 

[Ferrum Master]

these are the prices you and me would get quotes for building a one unit prototype. That can't possible be real.

Considering I work in the field, I see some bullshit numbers even if I buy them in single amount like a private person with shipping.

 

[trsttte]

$3,000 likely means they are targeting business users

But what business user would buy a form over function "premium" quality HMD/AR headset? Businesses need feature rich and rugged equipment, not some stylish toy with a closed of ecosystem.

I don't see any avenue for this product to be a success, business or consumer. All the renders that made news - like this one - look like a ski mask of some sort, who's going to wear that on a day to day basis?

 

[Gmr_Chick]

But what business user would buy a form over function "premium" quality HMD/AR headset? Businesses need feature rich and rugged equipment, not some stylish toy with a closed of ecosystem.

I don't see any avenue for this product to be a success, business or consumer. All the renders that made news - like this one - look like a ski mask of some sort, who's going to wear that on a day to day basis?

I'd just like to add that this headset also looks uncomfortable as all hell. I mean, even my $30 pair of magnifying goggles (used for model building and such) have more padding around the headband than this "premium" VR headset does!

 

[kondamin]

the very expensive version of the crap sitting in cupboards Samsung was selling a couple of years ago.

 

[evernessince]

But what business user would buy a form over function "premium" quality HMD/AR headset? Businesses need feature rich and rugged equipment, not some stylish toy with a closed of ecosystem.

I don't see any avenue for this product to be a success, business or consumer. All the renders that made news - like this one - look like a ski mask of some sort, who's going to wear that on a day to day basis?

It might appeal to a lot of companies in the business of creating art / 3D modeling. Kind of the same audience apple tends to appeal to. You are right though, would be hard to justify for most businesses assuming it really is form over function. Really we'll have to wait and see how good it is at launch. They priced it to the point where it really does have to innovate to be worth it.

 

[Berfs1]

My guess is it will be 1500$ MSRP, with the build cost being 750-1000$. Ain't no way Apple expects to sell this to normal customers at 3000$, let alone 1500$.

 

[Vayra86]

But what business user would buy a form over function "premium" quality HMD/AR headset? Businesses need feature rich and rugged equipment, not some stylish toy with a closed of ecosystem.

I don't see any avenue for this product to be a success, business or consumer. All the renders that made news - like this one - look like a ski mask of some sort, who's going to wear that on a day to day basis?

Have you taken a brief a look at what the average person in a suit uses for a phone?

Business users want hardware that does what it says on the tin, and without for example a Facebook login. Business is also not immune to a touch of business-y flair, which Apple products absolutely have.
And this is not the piece of gear you'll find hanging off every desk in the building - this is what's on the board room table in the penthouse, and in select offices.

 

[trsttte]

And this is not the piece of gear you'll find hanging off every desk in the building - this is what's on the board room table in the penthouse, and in select offices.

For what purpose? I've had iphones from work before, I get it, but an AR headset? I really don't see what the hell they'll be trying to sell. AR will be an interesting technology in the far future but that's not today or within the next couple of years.

I'm basing a lot of this opinion on the designs and renders that leaked out but I just don't see it, the only device I think came close to become a thing was the google glass and even that was more than a decade too early