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A customer tries on the Apple Vision Pro headset during the product launch at an Apple Store in New York City on Feb. 2, 2024.

Angela Weiss | Afp | Getty Images

The Vision Pro, the new virtual reality headset from Apple, can transport you to Hawaii or the surface of the moon.

It displays high-resolution computer graphics a few millimeters from the user’s eyes, all while allowing the user to control a desktop-like interface using their eyes and subtle hand gestures. The Vision Pro provides a preview of what using a computer could be like in five years, early adopters say.

The Vision Pro starts at $3,499. After adding storage and accessories such as straps, the whole package can cost as much as $4,500.

That’s a lot more expensive than competing headsets, such as Meta’s Quest 3, which starts at $499. It’s pricier than Meta’s high-end headset, the Quest Pro, which starts at $999. It’s also more expensive, even after controlling for inflation, than the first iPad ($499) or the first iPhone ($499 with a two-year contract).

The Vision Pro includes lots of pricey state-of-the-art parts. One estimate from research firm Omdia puts the “bill of materials” for the headset at $1,542, and that doesn’t include the costs of research and development, packaging, marketing or Apple’s profit margin.

The most expensive part in the headset is the 1.25 inch Sony Semiconductor display that goes in front of the user’s eye.

It’s a key component that helps the virtual experience feel more realistic than previous consumer headsets. The displays have a lot of pixels and lifelike colors, and are built with state-of-the-art manufacturing techniques.

Apple pays about $228 for the “Micro OLED” displays it uses, according to the Omdia estimate. Each Vision Pro needs two of them, one for each eye. Sony Semiconductor declined CNBC’s request to comment for this story.

The Vision Pro displays are the latest example of Apple embracing a new kind of display technology at a larger scale and earlier than the rest of the electronics industry.

Apple’s usage of LCD touchscreens for the first iPhone in 2007, and its later transition to organic LEDs or OLED displays with the iPhone X in 2017, upended existing supply chains and, after Apple shipped millions of units, ultimately drove the cost of the parts for the entire industry down.

Apple has a massive effect on the display industry, said Jacky Qiu, co-founder of OTI Lumionics, which makes materials for manufacturing micro LED panels. He said display makers fight for Apple’s business, which can be make or break for these companies.

“Apple is now the biggest player in terms of OLEDs, in terms of displays. They are the ones that are basically taking all the high-margin displays, all the stuff that is the high-spec type of stuff that is allowing the panel makers today to become profitable,” Qiu said.

“You look at the display business, you either work for Apple and make the iPhone screens and you’re profitable, or you don’t, and you lose money. It’s as brutal as that,” Qiu said.

Micro OLED

The Vision Pro’s displays are a defining feature. They’re packed with pixels and are sharper than any competing headset.

It’s one of the main points that Meta CEO Mark Zuckerberg complimented when comparing the $499 Quest 3 headset to Apple’s headset.

“Apple’s screen does have a higher resolution and that’s really nice,” Zuckerberg said in a video posted on his Instagram page, while saying that Quest’s screens are brighter.

“What’s so revolutionary about the OLED displays that are in the Vision Pro, the difference between Micro OLED and the OLED that you find on a television in your living room is that the pixels are actually a lot denser, they’re smaller and they’re more compact,” said Wayne Rickard, CEO of Terecircuits, a company that makes materials and techniques for display manufacturing.

An Apple Vision Pro headset is displayed during the product release at an Apple Store in New York City on Feb. 2, 2024.

Angela Weiss | AFP | Getty Images

According to a teardown analysis from repair firm iFixit, each Vision Pro display has a resolution of 3660 by 3200 pixels. That’s more pixels per eye than the iPhone 15, which has a screen resolution of 2556 by 1179 pixels. Meta’s Quest 3 comes in at a resolution of 2,064 by 2,208 per eye.

The Vision Pro’s screens are much smaller than the iPhone’s screen, which makes the pixels closer together, and more difficult to manufacture. The Vision Pro displays have 3,386 pixels per inch versus the iPhone 15, which has about 460 pixels per inch on its display.

In total, Apple says the Vision Pro’s displays have more than 23 million total pixels.

They’re some of the densest displays ever built. According to iFixit, 54 Vision Pro pixels can fit in a single iPhone pixel, and each pixel is about 7.5 microns from the next pixel, a measurement called “pixel pitch,” according to Apple’s specifications.

The Apple Vision Pro home screen.

Todd Haselton | CNBC

“With Micro LEDs in particular, it can get down to about below 10 microns. For comparison, a red blood cell might be about 20 microns, so half the size of a red blood cell,” Rickard said.

Apple opted for high-resolution displays so they’d be closer to simulating reality when using the headset’s passthrough mode, which uses outward-facing cameras to show video of the real world inside the headset. It also helps users read text or numbers in virtual reality. It helps remove the “screen door” effect of other headsets where you can see the pixels.

VR headsets need pixel-dense displays because the user’s eyes are so close to the screen. TVs have significantly fewer pixels, but it doesn’t matter because viewers are feet away.

The production of this kind of display requires cutting-edge manufacturing. For example, most displays are built on a backplane made out of glass. The Vision Pro displays are so pixel-dense that they use a silicon backplane, much like a semiconductor.

‘An incredible amount of technology packed into the product’

The new Apple Vision Pro headset is displayed during the Apple Worldwide Developers Conference in Cupertino, California, on June 5, 2023.

Justin Sullivan | Getty Images

The second most expensive part in the Vision Pro is the company’s main processor, which includes Apple’s M2 chip, the same chip it uses in the MacBook Air, and the R1 chip, which is a custom processor to handle video feeds and other sensors on the device.

Bill of materials estimates don’t take into account research and development costs, packaging or shipping. They also don’t take into account capital expenditures that can add up-front costs to big parts orders, but they’re useful for people in the manufacturing world to get an idea of how expensive the parts are in any given device.

Display technologies embraced by Apple typically come down in price after Apple makes them mainstream and as multiple suppliers compete for business.

“South Korean suppliers like Samsung Display and LG Display have shown their interest in this technology. Chinese suppliers like Seeya and BOE are also small-scale mass-produced [OLED on silicon] products,” said Jay Shao, Omdia analyst for displays, in an email. He expects the costs for Vision Pro spec screens to come down in the coming years.

Apple declined to comment, but Apple CEO Tim Cook is not a fan of cost estimates and teardowns. “I’ve never seen one that’s even close to accurate,” he said on an earnings call in 2015.

Apple doesn’t typically discuss its suppliers, but in February, Cook was asked about the device’s price tag on an earnings call.

“If you look at it from a price point of view, there’s an incredible amount of technology packed into the product,” Cook said.

He mentioned some of the most expensive parts in the device and emphasized the R&D costs that Apple spent developing it.

“There’s 5,000 patents in the product, and it’s built on many innovations that Apple has spent multiple years on from silicon to displays and significant AI and machine learning. All the hand tracking, the room mapping, all of this stuff is driven by AI, and so we’re incredibly excited about it,” Cook continued.

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Trump advisor Navarro rips Apple’s Tim Cook for not moving production out of China fast enough

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Trump advisor Navarro rips Apple's Tim Cook for not moving production out of China fast enough

Peter Navarro: 'Inconceivable' that Apple could not produce iPhones outside China

White House trade advisor Peter Navarro chastised Apple CEO Tim Cook on Monday over the company’s response to pressure from the Trump administration to make more of its products outside of China.

“Going back to the first Trump term, Tim Cook has continually asked for more time in order to move his factories out of China,” Navarro said in an interview on CNBC’s “Squawk on the Street.” “I mean it’s the longest-running soap opera in Silicon Valley.”

CNBC has reached out to Apple for comment on Navarro’s criticism.

President Donald Trump has in recent months ramped up demands for Apple to move production of its iconic iPhone to the U.S. from overseas. Apple’s flagship phone is produced primarily in China, but the company has increasingly boosted production in India, partly to avoid the higher cost of Trump’s tariffs.

Trump in May warned Apple would have to pay a tariff of 25% or more for iPhones made outside the U.S. In separate remarks, Trump said he told Cook, “I don’t want you building in India.”

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Analysts and supply chain experts have argued it would be impossible for Apple to completely move iPhone production to the U.S. By some estimates, a U.S.-made iPhone could cost as much as $3,500.

Navarro said Cook isn’t shifting production out of China quickly enough.

“With all these new advanced manufacturing techniques and the way things are moving with AI and things like that, it’s inconceivable to me that Tim Cook could not produce his iPhones elsewhere around the world and in this country,” Navarro said.

Apple currently makes very few products in the U.S. During Trump’s first term, Apple extended its commitment to assemble the $3,000 Mac Pro in Texas.

In February, Apple said it would spend $500 billion within the U.S., including on assembling some AI servers.

WATCH: Apple’s $500 billion investment: For AI servers not manufacturing iPhones

Apple's $500 billion U.S. investment: For AI servers not manufacturing iPhones

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CoreWeave to acquire Core Scientific in $9 billion all-stock deal

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CoreWeave to acquire Core Scientific in  billion all-stock deal

CoreWeave founders Brian Venturo, at left in sweatshirt, and Mike Intrator slap five after ringing the opening bell at Nasdaq headquarters in New York on March 28, 2025.

Michael M. Santiago | Getty Images News | Getty Images

Artificial intelligence hyperscaler CoreWeave said Monday it will acquire Core Scientific, a leading data center infrastructure provider, in an all-stock deal valued at approximately $9 billion.

Coreweave stock fell about 4% on Monday while Core Scientific stock plummeted about 20%. Shares of both companies rallied at the end of June after the Wall Street Journal reported that talks were underway for an acquisition.

The deal strengthens CoreWeave’s position in the AI arms race by bringing critical infrastructure in-house.

CoreWeave CEO Michael Intrator said the move will eliminate $10 billion in future lease obligations and significantly enhance operating efficiency.

The transaction is expected to close in the fourth quarter of 2025, pending regulatory and shareholder approval.

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The deal expands CoreWeave’s access to power and real estate, giving it ownership of 1.3 gigawatts of gross capacity across Core Scientific’s U.S. data center footprint, with another gigawatt available for future growth.

Core Scientific has increasingly focused on high-performance compute workloads since emerging from bankruptcy and relisting on the Nasdaq in 2024.

Core Scientific shareholders will receive 0.1235 CoreWeave shares for each share they hold — implying a $20.40 per-share valuation and a 66% premium to Core Scientific’s closing stock price before deal talks were reported.

After closing, Core Scientific shareholders will own less than 10% of the combined company.

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Apple appeals 500 million euro EU fine over App Store policies

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Apple appeals 500 million euro EU fine over App Store policies

Two young men stand inside a shopping mall in front of a large illuminated Apple logo seen through a window in Chongqing, China, on June 4, 2025.

Cheng Xin | Getty Images

Apple on Monday appealed what it called an “unprecedented” 500 million euro ($586 million) fine issued by the European Union for violating the bloc’s Digital Markets Act.

“As our appeal will show, the EC [European Commission] is mandating how we run our store and forcing business terms which are confusing for developers and bad for users,” the company said in a statement. “We implemented this to avoid punitive daily fines and will share the facts with the Court.”

Apple recently made changes to its App Store‘s European policies that the company said would be in compliance with the DMA and would avoid the fines.

The Commission, which is the executive body of the EU, announced its fine in April, saying that Apple “breached its anti-steering obligation” under the DMA with restrictions on the App Store.

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“Due to a number of restrictions imposed by Apple, app developers cannot fully benefit from the advantages of alternative distribution channels outside the App Store,” the commission wrote. “Similarly, consumers cannot fully benefit from alternative and cheaper offers as Apple prevents app developers from directly informing consumers of such offers.”

Under the DMA, tech giants like Apple and Google are required to allow businesses to inform end-users of offers outside their platform — including those at different prices or with different conditions.

Companies like Epic Games and Spotify have complained about restrictions within the App Store that make it harder for them to communicate alternative payment methods to iOS users.

Apple typically takes a 15%-30% cut on in-app purchases.

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