Oculus Rift teardown reveals a hardware cost of around $200

Oculus Rift teardown reveals a hardware cost of around $200

| Source: IHS Author: Mark Campbell

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.

(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.

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.

An industry teardown suggests that the Oculus Rift costs around $200 in parts. https://t.co/nOrjSeUdm0 pic.twitter.com/jfaZiWZyiv — OC3D (@OC3D) July 30, 2016

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