Apple’s new augmented reality (AR) headset, the Apple Vision Pro, represents a major leap forward for consumer AR technology. Priced at a steep $3,499, it is far more expensive than typical consumer electronics like smartphones. The Vision Pro’s ambitious feature set and cutting-edge components come at a premium cost. This article takes an in-depth look at the technology powering Apple’s pricey but promising AR headset.
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Advanced Displays and Optics
One factor driving up the cost of the Vision Pro is its incredibly advanced display and optical system. The headset contains two ultra-high resolution OLED microdisplays, one for each eye, each with a resolution of 4K per eye and a field of view of 80 degrees diagonal. These miniature displays are densely packed with pixels and engineered to be very bright to overcome ambient light.
The realism of the AR imagery is further enhanced by the headset’s optics. It uses precision molded glass lenses and advanced waveguide technology to seamlessly blend virtual objects with the real world. Unlike cheaper VR headsets, the Vision Pro optics are designed for mixed reality usage rather than full immersion.
This combination of cutting-edge displays and optics enables visual AR overlays of unprecedented quality compared to existing smartglasses. But manufacturing custom OLED microdisplays and complex optics in large quantities is extremely costly.
Advanced Silicon – The M2 and R1 Chips
Driving all of the Vision Pro’s functionality are two bespoke Apple-designed chips – the M2 and R1. The M2 chip is built on the latest TSMC 3nm process and packs an astounding 16 CPU cores and 32 GPU cores1. It handles tasks like spatial mapping, hand tracking, and rendering graphics.
The R1 chip is focused on managing all of the Vision Pro’s sensors and cameras. It has an 8-core neural engine for handling computer vision and AI tasks. Having dedicated silicon for AR/VR workloads provides the performance the Vision Pro needs but also adds to the bill of materials.
Apple’s expertise in designing cutting-edge custom silicon powers experiences not possible on off-the-shelf hardware. But the R&D and manufacturing costs for Apple’s proprietary chips are immense.
Sensor Suite for Mixed Reality
Augmenting the real world requires sensing and understanding it. The Vision Pro thus contains an array of cameras and sensors to map its environment:
- 12 cameras for tracking hand movements, eye tracking, and capturing the outside world in full color
- LiDAR sensor for room scanning
- Accelerometer, gyroscope, and other motion sensors for tracking head position
- Ambient light sensor to measure real-world lighting conditions
- Proximity sensor detects when the headset is being worn
This sensor suite enables advanced mixed reality experiences like interacting with virtual objects using your hands or placing AR objects on real surfaces. But it adds hardware costs for each sensor and camera module.
Other Advanced Components
The Vision Pro packs even more cutting-edge tech into its build:
- The battery uses dense L-shaped cells to enable all-day battery life
- Miniature antennas for WiFi 6E and 5G allow untethered use anywhere
- Spatial audio uses personalized HRTF to create immersive soundscapes
- Haptics system with ultra-responsive voice coil actuators for perceptible feedback
Many of these components are specially designed and tuned for AR/VR applications. The use of emerging technologies like WiFi 6E keeps the Vision Pro future-proof but adds costs due to small-scale production.
Extensive Research and Development Costs
Apple has been investing in AR and VR technology for nearly a decade. The Vision Pro leverages research across a wide range of disciplines including human interface design, hardware engineering, and software development.
Technologies like the intuitive hand tracking interface and life-like avatar rendering were achieved after years of R&D by Apple’s large AR/VR team. Apple has filed over 5,000 patents related to AR and VR, highlighting the scope of innovation.
The Vision Pro’s eye tracking technology, for example, can detect sub-millimeter movements of the eye according to Apple. This allows intuitive control without any controller. All of this R&D and experimentation adds to the Vision Pro’s price tag.
Low Economies of Scale (For Now)
As the Vision Pro is the very first model of Apple’s AR glasses, volumes will be limited compared to established product categories like the iPhone. Reports estimate Apple will initially produce less than 1 million units in 20238. Without economies of scale from mass production, prices stay elevated.
However, Apple typically rapidly scales production of successful new products. The company is rumored to be working on a lower cost follow-up model for release in 2025, with a $1500 price targeted by reducing component costs. Higher sales volumes will allow Apple to achieve more favorable manufacturing pricing.
A Price Premium Reflecting Apple’s uniqueness
As a luxury brand, Apple always commands a premium price over competitors. For higher-end hardware like the Vision Pro, customers are paying partly for the Apple logo and what it represents – status, quality, and prestige.
Despite being expensive for most, the Vision Pro will seem reasonably priced to Apple fans already accustomed to paying a premium for Apple products. The high functionality, advanced technology, and sleek design make it desirable versus unbranded alternatives.
For early adopters of a new product category like AR headsets, Apple’s brand power combined with the promise of the Vision Pro’s capabilities makes the $3,499 price almost justified.
Conclusion: An Ambitious Leap Forward into the Future
The Apple Vision Pro represents a technological tour de force by incorporating many cutting-edge components tailored specifically for augmented reality applications. From custom displays and chips to advanced optics and sensors, it integrates many emerging technologies not seen before in consumer tech products.
While the $3,499 price is clearly very high, it reflects the premium ingredients that add up in Apple’s ambitious AR headset. For customers seeking the best and most advanced capabilities, the Vision Pro delivers an unprecedented AR experience. Its high price marks Apple’s long-term strategic bet on moving into spatial computing and defining the future of personal tech.
