Good question. I don't have a good source, but this one guy tried to come up with a breakdown a few months ago and in parts alone he estimated $1529.

Inner and outer display including display lens: $840

Silicon content including M2 and R1 chips: $240

Sensors and cameras: $120

Battery: $18

Spatial Audio: $11

Housing, PCBS, cables, connectors, and packaging: $170

Assembly: $130

It aligns with the number in the article. The rest seems like a business decision.