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AirPods, small headphones generate 20 billion dollars for Apple

From a product that received quite a bit of criticism for being weird, expensive and that no one wanted to use, AirPods have proven their appeal by spreading like wildfire, surpassing even Apple’s imagination.

Almost immediately after Apple introduced AirPods in 2016, the “camera” craze began. Many edited photos mocked Apple’s new wireless headphones, calling them hair dryers, oversized earrings, or even a cartoon dog Snoopy.

However, 5 years have passed, AirPods emerged as an icon and brought great success to the “lost apple”. Customers line up outside the App Store on AirPods launch day, as if they were waiting to buy an iPhone. Professional basketball players start wearing them before a game. Olympic figure skater Jagger Eaton also wore AirPods during an event in Tokyo, Japan, this summer. A series of products that follow the AirPods were born, such as the luxury charging boxes from Prada, LV, Coach or the jewels attached to the AirPods. AirPods appear everywhere, from beverage stores to airports to video conferences during epidemic season.

That’s why at the recent MacBook event, AirPods continued to “usurp” the throne when for the first time in 2 years, Apple updated this line of headphones. AirPods 3 promises immersive sound, better sound quality, a stronger battery, a new design and personalized sounds, exclusive to AirPods Pro.

Small but mighty

Dan Ives, an analyst at Wedbush Securities, said AirPods could account for about 5% of Apple’s total revenue this year. He predicts that by 2022, the market share will be 20% thanks to AirPods 3 and AirPods 2 (after price cuts). Experts estimate that 100 million AirPods will be sold next year.

Speaking to CNN, Ives assessed that Apple has turned AirPods into a $20 billion business, a key factor in increasing market capitalization.

Apple doesn’t disclose specific numbers for headphones, but AirPods and the Apple Watch, the two most popular products under CEO Tim Cook’s reign, are the two mainstays of the Wearables, Home and Accessories division. . This division has generated more revenue than Mac computers for several consecutive quarters.

Part of the appeal of AirPods is fluidity. Like many other Apple products, they feature simple installation, convenient use, easy pairing with devices in the Apple ecosystem, and beautiful designs. The company removed the 3.5mm headphone jack from the 2016 iPhone. The controversial decision angered users, but it had a significant impact, pushing users into the world of wireless headphones.

David McQueen, director of research at market analysis firm ABI Research, Apple caused a stir when he removed some accessories from the iPhone case. Basically, what Apple means is: if you have enough money to buy a phone for $1,000, you can also spend a few hundred dollars more on our accessories.

By lowering the price of AirPods, Apple is once again betting on a strategy that surpassed the iPhone and the Apple Watch, which consists of offering the product in three levels: good, better and better. In addition to the AirPods 2 and AirPods 3, Apple also has AirPods Pro for $259 and AirPods Max for $550. According to Ramón Llamas, director of the market research firm IDC, offering more prices not only encourages more people to buy Apple products, but also allows them to participate more deeply in the ecosystem of the device. .

“Because AirPods are part of the Apple ecosystem, tied to Apple Music and Apple Fitness+, loyal users (millions of people) would rather stay with Apple than consider switching to another brand,” he said. . .

Behind the success of AirPods

From its humble position as an accessory to the iPhone 7 and 7 Plus, the popularity of AirPods “spread like wildfire,” said Greg Joswiak, Apple’s vice president of product marketing. “It was more successful than we could have imagined.” In the first quarter of 2020, CEO Tim Cook once emphasized that “demand for AirPods continues to be phenomenal.”

There are many reasons to explain the admirable achievement of AirPods. First, an expensive brand like Apple offers a price that is pretty much in line with the AirPods competitor. After adding features like noise cancellation and wireless charging, AirPods Pro have become the star of the wireless headphone market.

AirPods are also well received by young people and Generation Z. Compared to Apple

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