'

Oculus Rift teardown reveals a hardware cost of around $200

Oculus Rift teardown reveals a hardware cost of around $200

Oculus Rift teardown reveals a hardware cost of around $200

Oculus Rift teardown reveals a hardware cost of around $200

 

A new industry teardown of the Oculus Rift suggests that the Oculus Rift costs around $200 in parts, a mere 35% of the headset's retail price of $599. 

This price comes from IHS Market, a company that provides market analytics and expertise for governments and other companies worldwide.  IHS Market's own "Teardowns and Cost benchmarking team" has recently completed an in-depth teardown of the Oculus Rift VR headset, pricing every component inside the headset as well as noting their suppliers.  

At the end of their teardown, IHS give the Rift a bill of materials which costs $206 in total, though this does not include the manufacturing and development costs of the VR headset.  

  Oculus Rift teardown reveals a hardware cost of around $200

(Image courtesy of IFIXIT)  

 

The bulk of the costs for the VR headset comes from the headset's dual 1200x1080 90Hz displays, sensors, and other circuitry, making up over 70% of the headset's total cost.  

Oculus's Rift CV1 headset has been in development since their original Kickstarter campaign in 2012, making the research and development costs of the headset astronomical. These costs need to be earned back, resulting in an inflated price tag.   

One other thing that we must remember is that this does not include all of the manufacturing costs, only the direct material costs are accounted for in this teardown. Typically manufacturing and assembling devices can cost as much as 50% of the devices material cost, giving us a price tag that is around $300, rather than $200 for building an Oculus Rift.  

  

Oculus Rift teardown reveals a hardware cost of around $200

 

Yes, this teardown does show that the material cost for the Oculus Rift is around $200, though it must be remembered that Oculus still needs to offset years of development costs, the manufacturing costs of the headset as well as make a profit for the final unit.  

  

You can join the discussion on the Oculus Rift's hardware cost of $200 on the OC3D Forums

 

«Prev 1 Next»

Most Recent Comments

30-07-2016, 10:51:35

tinytomlogan
I think $200 in parts is a lot of money tbhQuote

30-07-2016, 11:19:55

SPS
I'm no manufacturing expert but that doesn't seem like a great profit margin compared to other products?Quote

30-07-2016, 11:40:33

tinytomlogan
Quote:
Originally Posted by SPS View Post
I'm no manufacturing expert but that doesn't seem like a great profit margin compared to other products?

Parts cost and profit are two very different things.Quote

30-07-2016, 11:52:32

WYP
Quote:
Originally Posted by tinytomlogan View Post
I think $200 in parts is a lot of money tbh
Yeah, general engineering rule of thumb is that manufacturing anything will cost at least 50% of the value of the bill of materials.Quote

30-07-2016, 11:57:09

SPS
Quote:
Originally Posted by tinytomlogan View Post
Parts cost and profit are two very different things.
I never said they were the same thing?Quote
Reply
x

Register for the OC3D Newsletter

Subscribing to the OC3D newsletter will keep you up-to-date on the latest technology reviews, competitions and goings-on at Overclock3D. We won't share your email address with ANYONE, and we will only email you with updates on site news, reviews, and competitions and you can unsubscribe easily at any time.

Simply enter your name and email address into the box below and be sure to click on the links in the confirmation emails that will arrive in your e-mail shortly after to complete the registration.

If you run into any problems, just drop us a message on the forums.