Pimax Introduces Software Subscription Model to Mitigate US-China Trade War Costs

Pimax, a leading manufacturer of PC VR headsets based in China, recently released a statement addressing the effects of the ongoing trade tensions between the US and China, specifically regarding their Crystal Super VR headset. For consumers in the US, this means a slight increase in prices, though Pimax’s innovative subscription payment model is cushioning some of the financial impact.

The Crystal Super, which Pimax announced in April 2024, is set to be their next flagship VR headset. This impressive device boasts a base 57 pixels per degree (PPD) using QLED panels, and provides a stunning resolution of 3,840 by 3,840 pixels per eye, with a wide field-of-view of 120 degrees. Currently, it’s available for pre-order, with shipments expected to roll out shortly.

Presently, US tariffs on goods from China are at a staggering 145%, posing challenges for creators of XR headsets, as China is the dominant hub for their production. Pimax, based in Shanghai, is the first to announce price changes as a result of this new dynamic.

In a recent blog post, Pimax outlined what these changes mean for their US customers. Surprisingly, the situation is not as dire as one might expect. The company has assured that any US orders of the Crystal Super placed before February 4, 2025, won’t incur additional tariff fees. However, customers might experience a shipping delay of about 20 days due to bulk movements to US warehouses.

For orders made between February 4 and April 10, a ‘Regional Surcharge’ of $75 will apply as Pimax aims to cover some of the heightened shipping and logistic costs. Post-April 10, new US orders will see a $95 surcharge, with the expectation of shipments starting in June. Additionally, Pimax plans to open a factory in Delaware to manage final assembly.

Despite these shifts, the Crystal Super’s pricing structure is largely intact. The company has adjusted its pricing framework, which—though a bit more complex due to a subscription software model—helps in mitigating tariff-related expenses.

The initial cost of the Pimax Crystal Super has been set at $799, with an additional $885 to be paid later via Pimax Play with Prime. This makes the total cost $1,684, not including the US-specific $95 surcharge.

Globally, the change is mostly nominal. The headset previously cost $999, with a Prime subscription adding $696, rounding to $1,695. Now, the setup reflects a lower initial cost, potentially attracting more users.

Moreover, Pimax still honors a 14-day trial period. For those outside the US, this might make the Crystal Super more appealing, as it involves a smaller upfront payment that’s refundable if returned within the trial period, provided Prime is used.

Pimax’s strategic use of their subscription model is a unique way to balance costs—something companies like Meta, who already significantly subsidize their hardware to boost software appeal, can’t leverage in the same manner.

Meta, too, has previously raised headset prices, as seen during the COVID-19 pandemic when the Quest 2 price briefly increased from $300 to $400 in 2022. It remains to be seen whether they will follow suit again.

Stay tuned as we continue to monitor how the US-China trade tariffs affect XR hardware. Check back soon for more updates.