Analyst Lists Five Components Responsible For Apple AR Headset’s High Price, Including Two TSMC-Developed Chipsets

Apple reportedly has multiple suppliers for its first AR headset, each playing a pivotal role in its launch by supplying the necessary components. These parts are no doubt crucial but are also responsible for the rumored high price of the device, which is said to be in the $3,000-$4,000 range. In the latest prediction from a well-known analyst, we discuss the five components making up the headset’s internals while also talking about which supplier will benefit the most from this partnership with Apple.

Analyst believes that Cowell will gain the most from the Apple AR headset launch

In his Medium blog post, TF International Securities analyst Ming-Chi Kuo made a few predictions related to the AR headset launch. While we will get into why the head-mounted wearable is expected to cost consumers a smaller fortune, Kuo first states that the device's announcement will happen during the upcoming WWDC keynote and that Apple is well-prepared for its unveiling.

As for the components, the AR headset will have a boatload of them, including two chipsets from TSMC, though Kuo did not reveal the official names. However, Bloomberg’s Mark Gurman believes that the primary SoC will be the M2, which will take care of the more demanding tasks such as playing back mixed-reality content. The secondary chipset could handle the low-priority tasks, likely to offload some of the resources from the M2. Other components will be provided by the likes of Cowell, Goretek, and others, with more details provided below.

“Apart from the assembly (exclusive to Luxshare-ICT), micro OLED display (exclusive to Sony), dual processors (exclusive to TSMC), casing (Everwin Precision as the main supplier), 12 camera modules (exclusive to Cowell), and external power supply (exclusive to Goretek) are the top 5 most expensive material costs for this new device.”

Cowell is said to benefit the most from Apple’s AR headset launch, possibly because of the 12 camera units expected to be found on the device. A smartphone with three sensors can end up becoming an expensive bill for the company, and here, we have a dozen of them expected to be found on the AR headset at various positions. Kuo also believes that this launch will determine the level of incoming investments for this specific category, though he previously laid out an unconvincing and disappointing shipments estimate figure of 300,000 units for 2023.

Even if the price is as high as the $3,000-$4,000 range, Apple only stands to make between $900 million - $1.2 billion in revenue. However, the industry’s growth is likely banking on the fact that Apple is invested in this category for the long term. The Cupertino giant is reportedly preparing a much cheaper successor of the AR headset, which will be easier on the consumer’s wallet. Naturally, we will revisit how well the device has sold in the fourth quarter of this year and update our findings to readers.

Written by Omar Sohail