Technologies

Why Apple Vision Pro’s $3,500 Price Makes More Sense Than You Think

Commentary: Apple’s first headset is too expensive for most people. But there are a few reasons why it isn’t so farfetched.

Apple announced its long-awaited Vision Pro mixed reality headset at its Worldwide Developers Conference on Monday, signaling its first major new product in almost a decade. The problem? You’ll have to pay $3,500 to try it.

That’s a lot (even for Apple), sparking a deluge of Twitter memes and a collective groan from the audience present at Apple’s conference.

Behind those jokes, there’s a valid point. At $3,500, Apple’s Vision Pro costs more than three weeks worth of pay for the average American, according to Bureau of Labor Statistics data. It’s also significantly more expensive than rival devices like the upcoming $500 Meta Quest 3, $550 Sony PlayStation VR 2 and even the $1,000 Meta Quest Pro.

It tops many other Apple products in terms of price too. Buying an iPhone 14 Pro Max, a 12.9-inch iPad Pro and an Apple Watch Ultra would still be cheaper than an Apple Vision Pro (although it comes fairly close.) Shipments of virtual and augmented reality headsets also plummeted in 2022, according to International Data Corporation statistics published in March, adding to the skepticism.

In an interview Tuesday with ABC News’ Good Morning America, Apple CEO Tim Cook acknowledged the headset’s price when asked if the average person would be able to afford it.

“I think people will make different choices depending upon their current financial situation,” he said.

To call Apple’s new headset expensive may be an understatement. But once you step back and look at the larger picture beyond the initial sticker shock, that eye-watering price starts to make a little sense.

Vision Pro’s price is comparable to a high-end Mac

Despite Vision Pro’s high price, it’s far from being the most expensive computer Apple sells. There’s another Apple computer that’s roughly double the price, the $6,999 Mac Pro, which just got its first major refresh since 2019 at WWDC on Monday. Apple’s modular desktop powerhouse is designed for professionals rather than everyday consumers, meaning it’s not intended for everyone.

mac pro device on a desk next to computer monitor — The new Mac Pro is $6,999.

Dan Ackerman/CNET

Even the MacBook Pro can get more expensive than most may realize once you configure it with high-end specifications. Like Vision Pro, a 16-inch MacBook Pro with Apple’s M2 Max processor, 32GB of unified memory and 1TB of storage will run you $3,499.

Years of research and development are also likely reflected in Vision Pro’s price. Since it’s an entirely different type of computer compared to the Mac, iPhone or iPad, Apple had to develop new technologies such as the R1 chip, which processes data from the headset’s 12 cameras, five sensors and six microphones. Mike Rockwell, vice president of Apple’s technology development group, even said during the WWDC keynote that the company filed over 5,000 patents during Vision Pro’s development. That effort certainly shows, according to CNET’s Scott Stein, who was impressed with the headset’s fidelity, video quality and interface.

“The engineering and depth of engineering in it is mind blowing,” Cook also said during the Good Morning America interview. “You’ve got more than a 4K experience in each eye. And, of course, it doesn’t come for free. It costs something to do that. “

That said, there’s a key difference that can make Vision Pro’s price more difficult to swallow compared with the MacBook Pro or Mac Pro. Both of those products are well established and have proven their usefulness to the creative professionals willing to pay for them. Vision Pro, however, is an entirely new product category that most people aren’t familiar with yet. It has yet to prove its value, and most people outside of Apple’s campus haven’t used it — except for select press that have gotten to try it in a demo controlled by Apple.

Microsoft’s HoloLens 2 is the same price as Vision Pro

microsoft-msft-hololens-2-1436-2 — Microsoft’s HoloLens 2

James Martin/CNET

Long before there was Vision Pro, there was Microsoft’s HoloLens, a head-mounted computer that also sought to change the way we work by overlaying digital graphics on top of the real world. The original HoloLens debuted in 2015 and the second version arrived in 2019 for $3,500 — the same price as Apple’s Vision Pro.

On one hand, that makes Vision Pro’s price more sensible. But there are some important differences between Apple’s new head-mounted computer and the HoloLens to consider. Take one look at Microsoft’s website for the HoloLens 2, and it’s clear the company sees this as an enterprise device more than a personal computer.

While the HoloLens may have initially been positioned as the next generation of computing, Microsoft is now primarily touting its usefulness in fields such as manufacturing, construction, health care, engineering and education. For companies and institutions, that makes purchasing a HoloLens 2 more like investing in a new piece of equipment rather than buying a new computer. Apple, however, seems to be targeting Vision Pro at everyday consumers that want a bigger canvas for working, watching movies and participating in FaceTime calls.

New tech gadgets usually get cheaper over time

apple vision pro headset on display at apple event — Apple’s Vision Pro headset

Scott Stein/CNET

First-generation technology products are typically expensive and limited compared with their successors. When the iPhone arrived in 2007, there was only one model and it started at $500, or roughly $749 in 2023 when adjusted for inflation. It included a paltry 4GB of storage, only one camera and just 15 apps. Even though Apple’s top-of-the-line iPhone 14 Pro will still cost $1,000 or more, Apple now sells several iPhones and different price ranges.

That includes the $429 iPhone SE, which has 16 times as much storage as the entry-level first iPhone, a significantly larger 4.7-inch screen compared to the original’s 3.5-inch display, a fingerprint reader and many other technologies that weren’t widely available back in 2007. And by 2023’s standards, the iPhone SE is about $320 cheaper than what Apple charged for the first iPhone.

Apple iPhone on display in 2007 — An original Apple iPhone on display during MacWorld in San Francisco, California, on Tuesday, Jan. 9, 2007.

Eric Slomanson/Bloomberg via Getty Images

A more direct comparison might be looking at the trajectory of virtual reality headsets. When the first Oculus Rift launched in 2016, it cost $599 and needed to be tethered to a powerful computer in order to work. But today’s Meta Quest 2 costs half the price at $300 and works wirelessly.

My point: Technology gets more affordable and more advanced over time. Don’t get me wrong, Vision Pro’s price will almost certainly prevent the current iteration of Apple’s headset from becoming as ubiquitous as the iPhone or Apple Watch.

However, that might not be the point — at least not right now. With Vision Pro, Apple is trying to establish what it believes will be the next major evolution of the personal computer. That’s a bigger goal than selling millions of units on launch day, and a shift like that doesn’t happen overnight, no matter what the price is. The version of Vision Pro that Apple launches next year likely isn’t the one that most people will buy.

Technologies

Trump Maintains US‑Iran Negotiations Continue Amid Tehran’s Denials of Duplicity

President Trump insists that US‑Iran talks are ongoing despite Tehran’s denial of any negotiation plans, while warning that only a deal or total surrender will allow passage through the Strait of Hormuz. Conflicting statements from both sides have heightened uncertainty as the conflict enters its sixth month.

On Monday, President Donald Trump asserted that negotiations between the United States and Iran are still taking place, even after Tehran stated it has no intention of engaging in direct talks with Washington.

In a fiery Truth Social post, Trump labeled Iran’s leaders “unbelievably duplicitous,” claiming they are lying about ongoing peace talks “whether Iran wants to admit it or not.” He repeated his assertion that the United States completely controls the Strait of Hormuz, despite maritime traffic through the crucial route lingering at only a small fraction of pre‑conflict levels.

He wrote, “Nothing reaches Iran unless we allow it, and nothing will pass unless a deal—or total surrender—is achieved.”

Earlier that day, Iranian Foreign Ministry spokesperson Esmail Baghaei told reporters there is no imminent plan for U.S.–Iran negotiations, contradicting Trump’s earlier comment that talks would resume Monday afternoon. Baghaei added that Iran’s only current discussions are with Oman concerning the Strait of Hormuz.

The conflicting statements have heightened uncertainty over the peace‑talk process and the broader conflict, now in its sixth month.

Trump’s assertion about new negotiations came a day after he said on Truth Social that he had agreed to cancel a massive strike against Iran “subject to being able to rapidly make a DEAL.” He said in the same post that Iran and other Middle Eastern countries had asked him to hold off on that attack because “the perimeters of a deal has been agreed to.”

Trump has claimed dozens of times throughout the more‑than‑five‑month‑long war that a deal is at hand. No permanent deal has been signed, and a temporary ceasefire reached in June has fallen apart.

Trump has also repeatedly threatened to launch devastating strikes against Iran before backing off. After the latest example, oil prices on Monday fell and stocks surged.

BMI, a research unit of Fitch Solutions, said in a note Monday that a broader diplomatic understanding on reopening the Strait of Hormuz is still achievable this quarter, while raising the probability of its escalation scenario to 35% from 25%, citing mounting military, diplomatic and economic signs of rising U.S.-Iran tensions.

“Diplomatic progress is likely to be punctuated by periodic military flare-ups, while miscalculation by either side could trigger a renewed escalation,” BMI analysts wrote in a note. The firm said the key issue to watch is the future governance of the strait, as the Iran-Oman talks — potentially backed by Gulf states, China and the U.S. — point to efforts to build a post-conflict shipping framework.

Shipping risks persist even as diplomacy appears to be advancing. The United Kingdom Maritime Trade Operations Centre said it received a report of an incident 20 nautical miles (23 miles) northeast of Khasab, Oman — at the mouth of the strait — with a tanker’s master reporting an explosion in close proximity to the vessel at about 20:37 UTC Sunday (4:37 pm ET). The vessel and crew were safe and authorities are investigating, UKMTO said, advising ships to transit with caution.

The proposal Trump announced over the weekend calls for the U.S. and Iran to return to negotiations and continue ironing out some of the thorny issues that had derailed diplomatic efforts, according to The Associated Press, citing a regional official involved in the mediation efforts.

The official said the proposal also includes a reopening of the Hormuz Strait and halting attacks across the region, including by Iranian-backed militias in Iraq on the Arab Gulf countries and Jordan.

The U.S., for its part, will end its naval blockade on Iran and allow Tehran to export its oil, the official said, adding that no deal has been reached, although the mediation efforts remained underway.

Trump’s weekend reversal has lowered the temperature after days of escalating attacks across the Gulf. Kuwait said Saturday that Iranian forces launched a wave of drones within its airspace, with its military destroying multiple aircraft after Iran targeted critical infrastructure in the country’s north.

A parallel track with Muscat is also advancing. Iranian diplomats said Tehran was close to reaching a new arrangement with Oman to manage shipping through the Strait of Hormuz, a deal critical to preventing the war from escalating further, according to the Financial Times.

Iranian officials said negotiations over future management of the Hormuz Strait with Oman, which sits on the opposite shore of the waterway, are in their final stages. The agreed shipping route would be different from those used before, according to Iran’s Foreign Ministry spokesperson, Baghaei, adding that the new route was separate from the issue of the strait’s reopening or continued closure.

Technologies

Oil Prices Slide as Trump Halts Planned Iran Strike

Oil prices dropped after Trump cancelled a planned strike on Iran, with WTI down about 5% and Brent near 5% lower. He said the move followed requests from Tehran and regional allies for a pause while a deal shaping the Strait of Hormuz and Iran’s nuclear program is negotiated.

Oil prices fell on Monday after President Donald Trump announced he had cancelled a planned strike on Iran. WTI futures dropped roughly 5% to $80.34 a barrel, while Brent slipped about 4.7% to $83.77 a barrel.

Trump said early Sunday he called off the strike after Iran and several Middle Eastern nations asked him to hold off, noting that the outlines of a deal had been agreed upon. He added that the prospective accord would entail the immediate, full opening of the Strait of Hormuz and an end to Iran’s nuclear ambitions, according to his Truth Social post.

The president had been considering another round of strikes as diplomatic hopes waned since the conflict began on February 28. He said the U.S. and Iran would meet for talks on Monday, but Iran denied any scheduled negotiations with Washington, citing PressTV. Iran’s foreign‑ministry spokesperson Esmaeil Baghaei clarified that Tehran was only discussing shipping routes through the Strait of Hormuz with Oman. In a follow‑up Truth Social message, Trump insisted that, regardless of Iran’s acknowledgment, the United States is indeed discussing a solution to a long‑standing problem created by Iran.

Technologies

Oil Prices Drop as Trump Cancels Planned Attack on Iran

Oil prices fell sharply after President Trump announced the cancellation of a planned strike on Iran, citing a new deal that would open the Hormuz Strait and end Iran’s nuclear threat.

Oil prices fell sharply on Monday after President Donald Trump announced that he had called off a planned strike on Iran.

West Texas Intermediate futures, the U.S. benchmark, slipped roughly 5% to close at $80.34 per barrel, while Brent crude, the international benchmark, declined 4.7% to settle at $83.77 a barrel.

Trump made the announcement early Sunday, saying he had canceled the strike following requests from Tehran and other Middle Eastern countries.

In a Truth Social post, he wrote: “We have just been asked by Iran, and other Middle Eastern Countries, to hold off any attack in that the perimeters of a deal has been agreed to.”

The president indicated that the proposed agreement would include the immediate, complete, and total opening of the Hormuz Strait, as well as an end to Iran’s nuclear threat.

Trump had been weighing additional strikes amid diminishing prospects for a diplomatic resolution to the conflict that began on Feb. 28. He stated that the U.S. and Iran would hold negotiations on Monday.

Tehran denied that talks were planned with Washington, according to state news outlet PressTV.

Iran’s Foreign Ministry spokesman Esmaeil Baghaei said Tehran was only holding talks with Oman regarding the routes ships can use through the Strait of Hormuz.

In a subsequent Truth Social post, Trump added that whether “Iran wants to admit it or not, we are, in fact, talking of a solution to a problem that they have caused for decades.”