The Apple Vision Pro is an absolutely fantastic product, but there is one downside: its price. At $3,999, the Vision Pro’s shipping isn’t nearly as good as the iPad Pro, iPhone 15 Pro Max, or MacBook Air. Fortunately, there is hope: Apple may soon lower the price of the Vision Pro, thanks to savings on the cost of displays. The result is a price drop without affecting the profit margin that is particularly important to Apple.
A price drop could soon appear
The Apple Vision Pro was launched this summer in France with a price that surprised more than one: €3,999. This price is partly explained by the advanced technologies it includes, in particular its 4K micro-OLED screens, the production cost of which represents a significant part of the final price. As production of these screens intensifies, a reduction in costs seems to be in sight, which suggests a possible price drop for future generations of the Vision Pro.
The Vision Pro features two 4K micro-OLED displays, one for each eye, delivering unmatched image quality in mixed reality. Each display, measuring 1.4 inches, currently costs around $300 for Apple, which adds up to a total of $600 for both units. This is about 20% of the device’s retail price. When it first went into production, each micro-OLED panel was priced at $350. However, through strategic negotiations with its suppliers, Apple has managed to reduce this cost to $300 per unit. Fortunately, according to one report, this is just the beginning of a downward trend: a reduction to $250 is expected by 2025 and a further reduction to $210 is expected by 2026. In other words, Apple could see a 33% savings on these essential components within two years.
An impact on the price of the next generation?
This cost reduction could have an interesting impact on the price of future generations of the Apple Vision Pro. Indeed, a 33% reduction in the price of the displays could allow Apple to reduce the selling price of its space computer without compromising its profit margins. If these reductions materialize, the second generation of the Vision Pro could be marketed at a more accessible price, thus expanding the potential market for this revolutionary product.
Currently, Sony is the sole manufacturer of the micro-OLED panels used in the Apple Vision Pro, with an annual production capacity of around 1 million units. However, this situation is likely to change in the coming years, as new suppliers are expected to join the supply chain, increasing supply and fostering greater price competition. This diversification of suppliers could not only help stabilize costs, but also improve component availability, which is crucial to meet growing (but still timid due to the tariff) demand.
The gradual decline in manufacturing costs, particularly for micro-OLED displays, could allow Apple to offer a more affordable version of the Apple Vision Pro in the coming years. As the mixed reality market continues to grow, a more aggressive pricing strategy could solidify Apple’s position as a leader in this growing sector. Consumers could benefit not only from cutting-edge technology, but also from a more affordable product.