Oculus Rift headset production cost estimated to be $206

IHS has disassembled an Oculus Rift, showing you all the components that are present in this VR headset, you can check it out over here. After a detailed analysis of the device, IHS concludes the total bill-of-materials (BOM) of the Rift is around $199.60, or about $206.10 once you factor in the cost of assembly. Of course, this excludes important other costs like R&D and marketing outlays. At present, the Oculus Rift retails for $599.

The most expensive component of the Rift is its headset, comprising elements such as the display panel, processor integrated circuits (IC), memory, user interface ICs, power management ICs, sensors, and miscellaneous electronics. At an estimated cost of nearly $140, the headset represents close to 70% of the Rift’s direct materials or components cost of approximately $200. The headset’s biggest cost element is the active-matrix organic light-emitting diode (AMOLED) screen from Samsung Display, measuring 3.51 inches in size and featuring 1200 x 1080 resolution. AMOLED is regarded in the virtual reality industry as the panel technology of choice because of its low persistence, or the minimizing of noticeable blur in motion when VR participants move their heads quickly during VR play.