The Asian report says that “The wireless earphones are Apple’s second fastest-selling product of all time, only behind the iPhone. Now its more expensive AirPods Pro – which includes such features as noise cancellation – is a hot seller, too. The stampede into so-called true wireless stereo earbuds is in its early stage, analysts say, as consumers ditch their old wires for the cooler look and improved sound.”
According to Zhongtai securities “True wireless stereo will become the next big thing in consumer electronics It will become the next product that could ‘create a growth miracle’ after the smartphones, which have experienced what seems like a topping-out in output after years of rapid growth.”
As expected it is not just Apple who is benefitting from the increased demand for AirPods. Luxshare, a Chinese company involved in AirPods assembly has seen its share go up by more than 200 percent this year alone. The increase in popularity also reflects in GoerTek, Apple’s second assembler share which went up 193 percent this year. However, it is worth noting that GoerTek also takes contracts from Huawei.
AirPods Growth Statistics
LuxShare is on the way to become a major supplier for Apple AirPod and it already has a share of 60 percent to 70 percent. The Zhongtai Securities report mentions that “There are about 900 million to 1 billion iPhone users worldwide, so the saturation ratio of AirPods among the existing users is not even 10 percent. That represents a huge room for growth.”
The quality of AirPods, small form factor, and the seamless Bluetooth connectivity is helping the earbuds gain traction. Meanwhile, Apple is already leading the wearable products segment as sales surge 54 percent quarter-on-quarter fro July to September. Shipments of AirPods grew exponentially to 35 million last year as opposed to 14 million in 2017. The sales are only set to grow with the newly released AirPods Pro.