iPhone is growing, why AirPods sales are decreasing

As we all know, the sales of iPhone 11 are good, and Apple’s global market share of smart phones is also the only one that has remained basically stable, while other mobile phone manufacturers have experienced varying degrees of decline. The change in global market share shows that Apple’s market share is still very stable.

To say that Apple’s share is stable, other accessories should also be good. However, it is reported that Apple’s AirPods market share has decreased. Normally, it should grow at the same time. After all, there are more and more users of iPhone mobile phones. Since Apple’s new products have cancelled the headphone jack, the use of AirPods is increasing.

Now that the sales of AirPods are declining, there are two possibilities. One is that users are dissatisfied with the price of wireless earphones, so they are unwilling to be taken advantage of to buy AirPods; the other is that there are many products that can replace AirPods in the wireless earphone market, that is, alternatives have seized some of the AirPods market share.

As we all know, AirPods defines the category of true wireless headphones (TWS). According to data from Counterpoint Research, Apple’s AirPods sales accounted for nearly half of the wireless headset market in 2019, and it is expected to grow to 82 million units this year. However, more affordable alternatives launched by Chinese competitors are increasingly threatening Apple’s leading position. Today, Apple’s AirPods’ market share barely exceeds one-third, reaching 35%; Xiaomi’s share is 10%, and Samsung Electronics ranks third with 6%.

According to the statistics of Strategy Analytics, in 2019, Airpods accounted for 50% of the total TWS headset market shipments and 71% of the TWS sales share. It is undoubtedly the industry leader. In the wireless headset market, although AirPods has a good share, we are seeing more and more competitors’ products appearing more and more “beautiful” in price. In the overall situation of consumption this year, the price determines the wireless The trend of the headset market.

On the market today, the $90 Lypertek Tevi wireless headset is not inferior to AirPods in comfort and sound quality. The 1MORE True Wireless ANC, priced at $180, also has better noise reduction performance than the $250 AirPods Pro.

The Galaxy Buds Live released by Samsung also has a good reputation for noise reduction. The pod-shaped design also has a special charm. The most important thing is that the price is 170 US dollars, which is still much cheaper than AirPods Pro.

Samsung said that a few weeks before the launch of the product, shipments had reached 300,000 pairs, and the market performed well. Analysis agency Counterpoint said, “The low-end market, including Chinese brands and American manufacturers such as JLab, is eating away at the high-end market.”

In addition, there are a large number of Android phone users in the market. Their demand for wireless headsets is also extremely strong. This part of users’ demand for AirPods Pro is very low. When they choose wireless headsets, they naturally rely on the products of Android mobile phone manufacturers.

It is reported that Samsung, Xiaomi, Huawei and other mobile phone markets have good market demand for headset products. Especially as Samsung continues to expand its headset product line, the market expects that the company’s wireless headset sales will more than double this year, from 800 Million increased to 17 million. And Apple’s AirPods series is expected to grow from 61 million to 82 million.

According to a report by the international research organization Futuresource, global TWS true wireless smart headset shipments are predicted to reach 186 million in 2020, an increase of approximately 63.1% year-on-year. IDC data also shows that Q1 shipments in 2020 will be approximately 20.91 million units, a month-on-month growth rate of 11.7%. According to GFK estimates, the TWS market will exceed 11 billion US dollars in 2020. This will enable manufacturers entering Apple’s TWS supply chain to benefit from the continued growth of TWS.

With the cancellation of the 3.5mm headphone jack design in smart phones and the continuous intelligentization of voice assistants, this also provides a good opportunity for the development of TWS headsets. With the advantages of cordlessness and portability of TWS headsets, as well as the gradual improvement of sound quality, delay and battery life issues, I believe that more users will choose to start with TWS headsets in the future. With more competitors, product prices will become more affordable. Will the price of AirPods Pro also decline?