OLEDoS and OLED display panels will account for 35% of the component cost of Apple's Vision Pro VR device

Source: Omedia Analyst Photo – Apple Worldwide Developers Conference / June 2023

Figure 2: Apple Vision Pro's internal OLEDoS and external OLED display panels

Source: Omedia Analyst Photo – Apple Worldwide Developers Conference / June 2023

Here is Omdia's assessment of the display panel equipped with the Vision Pro:

OLEDoS, internal display panel or "main display panel"

– Each device is equipped with two pieces, one for each eye

– 1.41 inches, 3648×3144 resolution, 3,400 pixels

– 23.9 million pixels (approximately 3648×3144 x 3 = 23.9 million)

– White OLEDoS produced by Sony Semiconductor Manufacturing

– TSMC, using 130nm process and 300mm wafers, provides silicon-based backplanes

– TSMC uses 28nm process to manufacture OLEDoS driver ICs

– Brightness over 500 nits, 95% DCI-P3 color saturation

– Estimated cost is $228 per piece

Flexible OLED, external display panel, or "sub-display panel"

– Monolithic

– 6 inches, 800×360 resolution, 145 pixel density

– RGB flexible OLED and free-form glasses-like display panels manufactured by LG Display

– Estimated cost is $70 per piece

Through cost estimation, we can calculate that the display panel costs about $530, accounting for 35% of the bill of materials (BOM) cost of Apple's Vision Pro.

Table 1: Apple Vision Pro BOM cost and supplier evaluation (USD)

In comparison, the OLED display panel cost of Sony's PS VR2 accounts for 30% of the total bill of materials cost. According to Omdia's "XR Application Near-Eye Display Report - 2023 Database" , the low-temperature polysilicon thin-film transistor (LTPS TFT) LCD panel display panel of Meta Quest 2 accounts for 18% of its total bill of materials cost, and the OLEDoS display panel of Huawei's Vision VR device accounts for 39% of its total bill of materials cost.

During the first life cycle of Vision Pro, production is expected to be 200,000 units in 2024, and in the years after 2024, with the launch of new Vision Pro models, production is expected to reach 1 million units.

On the other hand, Omdia predicts that Vision Pro, as Apple's first near-eye device product, will gradually become more user-friendly, more adaptable to user behavior, and have better picture performance. Therefore, Omdia expects the release of display panels to progress as follows:

First generation Vision Pro, 2024 – White OLEDoS + Flexible OLED; Display panel manufacturers are Sony Semiconductor and LG Display

Second generation Vision Pro, 2025 – White OLEDoS + flexible OLED with higher resolution and brightness; potential display panel manufacturers are Sony Semiconductor, LG Display and Vision Technology

3rd generation Vision Pro, 2027 – RGB OLEDoS + flexible OLED, RGB color removal color filter; potential display panel manufacturers are Sony Semiconductor, Vision Technology, Samsung Display, LG Display and BOE

In the long run, Apple may change its white OLEDoS display panel to an RGB OLEDoS display panel for better brightness and color performance.

Source: Omdia