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

Pimax, a Chinese company known for its PC VR headsets, has opened up about how the ongoing US-China trade war is affecting its operations, especially regarding its Crystal Super VR headset. For American customers, this means a slight price hike, although Pimax’s newly introduced subscription payment plan is helping to soften the blow.

Unveiled in April 2024, the Crystal Super is Pimax’s latest top-tier VR headset. It boasts a base model with a remarkable 57 pixels per degree (PPD) and features QLED panels offering a resolution of 3,840 x 3,840 pixels per eye, along with a 120-degree field-of-view (FOV). Although it’s available for pre-order now, the first shipments are expected to head out soon.

The current situation is challenging. The US has imposed a hefty 145% tariff on all Chinese-made goods, posing a significant problem for XR headset producers globally, given China’s centrality in this market’s manufacturing. Pimax, headquartered in Shanghai, is the first to announce pricing adjustments due to these tariffs.

In a recent blog post, Pimax explained how these changes would impact US customers. Surprisingly, it isn’t as severe as one might expect. Orders placed before February 4, 2025, will avoid additional tariff charges, but they might experience a shipping delay of approximately 20 days as they are sent in bulk to US warehouses.

For orders placed between February 4 and April 10, there will be a $75 ‘Regional Surcharge’ due to increased shipping and logistics expenses. Then, from April 10 onward, a $95 surcharge will be added to all new US orders, with these shipments kicking off in June. Notably, Pimax is setting up a Delaware factory to manage final assembly tasks.

Despite these surcharges, the Crystal Super’s overall price remains relatively stable. Pimax has revamped its pricing system, incorporating a subscription-based software pricing plan that compensates for tariff costs. The base price has been reduced to $799, with another $885 to be paid later through a service called Pimax Play with Prime, totaling $1,684 (excluding the $95 US-specific surcharge).

For customers outside the US, the changes are mostly nominal. The headset was initially priced at $999 with an additional $696 for the Prime subscription, totaling $1,695. The updated local prices now reflect a lower upfront payment.

The company emphasizes that its 14-day trial period still stands, making the Crystal Super potentially more appealing for international buyers. This means less upfront cost, which remains refundable if the headset is returned before the trial ends and the Prime subscription kicks in.

Pimax’s situation is somewhat unusual, as it can leverage its subscription model to mitigate costs. This isn’t an option for other platform companies like Meta, which already subsidize hardware to make software more appealing.

While Meta hasn’t signaled any price increases recently, they did previously elevate headset prices due to the pandemic, bumping the Quest 2 from $300 to $400 back in 2022. For now, it’s a waiting game to see how things unfold.

We’ll continue to monitor how these US-China trade tariffs impact the XR hardware market. Stay tuned for updates.