Apple steals further march in wireless earphone sector
Shipments of Apple’s AirPods wireless earphones are expected to double to 60m units in 2019 sources claim.
This has been driven in part by “much higher” than expected demand for the pricier AirPods Pro model unveiled in October.
The $249 (€225) AirPods Pro — which offer noise cancellation and water resistance — have surpassed expectations and demand is pushing Apple’s assembly partners against capacity and technical constraints.
Multiple suppliers are competing for the business of manufacturing the Pro earphones, though some are still building up the technical proficiency.
There is currently a wait time of two to three weeks for the AirPods Pro on Apple’s US website.
The most advanced form of wireless headphones is called “true wireless,” defined by the absence of a wire not just between the headphones and the music source but between the two earbuds, and the AirPods are the category-leading example.
Taiwan-based Inventec and China’s Luxshare Precision Industry and Goertek manufacture the AirPods for Apple.
The pickup in sales this year has been helped by the launch of two new iterations: The Pro model in October and a $199 upgraded version of the original in March. The first AirPods were released in 2016.
The runway is also mostly clear for Apple to have a successful holiday season, with Microsoft delaying its rival true wireless buds until spring and Google also not launching its new model until 2020.
At the end of August, Apple was the clear leader in the global true wireless earphones market. AirPods shipments have dwarfed every alternative and the Beats Powerbeats Pro, another Apple product, also feature in the top 10 sellers.
While Samsung’s Galaxy Buds have emerged as a recognisable competitor, Apple moreover ranked as the most preferred brand for future purchases of true wireless headphones in the US, the researchers said.
“Apple also edged rivals because true wireless as a category is the preferred choice over wireless earphones, due to factors like better sound quality, portability, and ease of use,” Counterpoint analyst Pavel Naiya said.
Wearables like the AirPods and Apple Watch have become a crucial growth driver for Apple, which is adapting to plateauing iPhone demand in a mature smartphone market.
In the past quarter, Apple’s iPhone sales shrunk to $33.4bn from the prior year’s $36.8nn, whereas the wearables, home, and accessories segment, composed of the Apple Watch, AirPods, Beats, HomePod and Apple TV groups — generated $6.5bn in revenue, growing by 54%.
