KGI: AirPods Shipments Will Double Next Year Given Strong Demand

AirPods will remain one of Apple's most popular accessories in 2018, with shipments likely to double to an estimated 26-28 million units on a year-over-year basis, according to Apple analyst Ming-Chi Kuo.

airpods side
Kuo said there has been strong demand for AirPods, which he views as the most important accessory in Apple's wireless ecosystem. His prediction implies AirPods shipments will total 13-14 million units in 2017.

An excerpt from Kuo's latest research note with investment firm KGI Securities, a copy of which was obtained by MacRumors:

We believe demand for AirPods has been strong, and note that the shipping time of the product on Apple's official shopping website has shortened to 1-3 days, mainly thanks to an improved assembly process and increased capacity from Luxshare as the new assembler […] We expect AirPods to remain one of the most popular Apple accessories in 2018, with shipments likely to rise 100% YoY to 26-28mn units next year.

Chinese company Luxshare could become the main assembler of AirPods in 2018, with a higher order allocation than fellow supplier Inventec, after improving its assembly process and increasing production capacity.

Apple doesn't break out AirPods sales like it does with iPhones, iPads, and Macs. Instead, it groups the wireless earphones under its "Other Products" category, alongside Apple TV, Apple Watch, Beats, iPods, and other accessories.

Apple reported revenue of $3.2 billion from its "Other Products" category last quarter, up 36 percent year over year.

Last month, on an earnings call, Apple CEO Tim Cook said he was "thrilled with the momentum" of AirPods. He boasted that Apple's entire wearables business generated the annual revenue of a "Fortune 400" company in the 2017 fiscal year.

The combination of music streaming on Apple Music and AirPods is truly a magical experience for people on the go. We're thrilled with the momentum of these products. In fact, our entire wearables business was up 75 percent year over year in the fourth quarter, and in fiscal 2017, already generated the annual revenue of a Fortune 400 company.

AirPods launched for $159 in December 2016 after a two month delay, but orders on Apple's website faced a six-week shipping estimate until August 2017 as Apple struggled to improve the supply-demand balance of the wireless earphones.

AirPods shipping estimates have gradually improved since then, with orders now slated for delivery in under one week.

We haven't heard many rumors about second-generation AirPods, but Apple will be releasing an inductive charging case for the wireless earphones designed to work with its AirPower charging mat, which itself will launch in early 2018.

Related Roundup: AirPods 3
Buyer's Guide: AirPods (Don't Buy)
Related Forum: AirPods

Top Rated Comments

Aussi3 Avatar
82 months ago
What happened to the negative hype of everyone that said they suck without trying them! And they will be a flop lol
Score: 24 Votes (Like | Disagree)
Geert76 Avatar
82 months ago
Best Apple product in years!
Score: 16 Votes (Like | Disagree)
fokmik Avatar
82 months ago
Why does everything from Apple need to be classed as a "Magical Experience"
This is getting really embarrassing for adults.
Fine if you are explaining things to a group of 6 - 8 year olds in school.

Please stop with the Magical.
So the kid inside you,is dead
Score: 15 Votes (Like | Disagree)
Piggie Avatar
82 months ago
Why does everything from Apple need to be classed as a "Magical Experience"
This is getting really embarrassing for adults.
Fine if you are explaining things to a group of 6 - 8 year olds in school.

Please stop with the Magical.
Score: 12 Votes (Like | Disagree)
BMcCoy Avatar
82 months ago
They’d sell even more if they offered colour(s) other than white. Grey or black for a start.
Score: 11 Votes (Like | Disagree)
Chupa Chupa Avatar
82 months ago
Waiting for the rumored wireless case. Hoping they'll come in black too. Love the AirPods, hate the color. Tried the stickers but they look like stickers.

What happened to the negative hype of everyone that said they suck without trying them! And they will be a flop lol
Who is everyone? All the pro reviews I came across said they were basically the most Apple-like product in the Tim Cook era.
Score: 9 Votes (Like | Disagree)

Popular Stories

reset password request iphone

Warning: Apple Users Targeted in Phishing Attack Involving Rapid Password Reset Requests

Tuesday March 26, 2024 4:34 pm PDT by
Phishing attacks taking advantage of Apple's password reset feature have become increasingly common, according to a report from KrebsOnSecurity. Multiple Apple users have been targeted in an attack that bombards them with an endless stream of notifications or multi-factor authentication (MFA) messages in an attempt to cause panic so they'll respond favorably to social engineering. An...
iPhone Home Screen Gradient Blank Spaces 1

Sources: iOS 18 Lets Apps Be Placed Anywhere on Home Screen Grid

Sunday March 24, 2024 1:33 pm PDT by
iOS 18 will give iPhone users greater control over Home Screen app icon arrangement, according to sources familiar with the matter. While app icons will likely remain locked to an invisible grid system on the Home Screen, to ensure there is some uniformity, our sources say that users will be able to arrange icons more freely on iOS 18. For example, we expect that the update will introduce...
iPad Pro 2024 Landscape Camera Feature

New iPad Pro Again Rumored to Feature Landscape Front-Facing Camera

Monday March 25, 2024 5:43 am PDT by
The next-generation iPad Pro will feature a landscape-oriented front-facing camera for the first time, according to the Apple leaker known as "Instant Digital." Instant Digital reiterated the design change earlier today on Weibo with a simple accompanying 2D image. The post reveals that the entire TrueDepth camera array will move to the right side of the device, while the microphone will...
sonoma desktop wwdc

Apple Releases macOS Sonoma 14.4.1 With Fix for USB Hub Bug

Monday March 25, 2024 10:10 am PDT by
Apple today released macOS Sonoma 14.4.1, a minor update for the macOS Sonoma operating system that launched last September. macOS Sonoma 14.4.1 comes three weeks after macOS Sonoma 14.4. The ‌‌‌‌macOS Sonoma‌‌ 14.4‌.1 update can be downloaded for free on all eligible Macs using the Software Update section of System Settings. There's also a macOS 13.6.6 release for those who...
Generic iOS 18 Feature Purple

iOS 18 Will Finally Bring This Android Feature to iPhone

Monday March 25, 2024 6:42 am PDT by
iOS 18 will allow iPhone users to place app icons anywhere on the Home Screen grid, according to sources familiar with development of the software update. This basic feature has long been available on Android smartphones. While app icons will likely remain locked to an invisible grid system on the Home Screen, our sources said that users will be able to arrange icons more freely on iOS 18....
maxresdefault

Apple Announces WWDC 2024 Event for June 10 to 14

Tuesday March 26, 2024 10:02 am PDT by
Apple today announced that its 35th annual Worldwide Developers Conference is set to take place from Monday, June 10 to Friday, June 14. As with WWDC events since 2020, WWDC 2024 will be an online event that is open to all developers at no cost. Subscribe to the MacRumors YouTube channel for more videos. WWDC 2024 will include online sessions and labs so that developers can learn about new...
apple maps 3d feature

Apple Maps May Gain Custom Routes With iOS 18

Tuesday March 26, 2024 3:10 pm PDT by
Apple may be planning to add support for "custom routes" in Apple Maps in iOS 18, according to code reviewed by MacRumors. Apple Maps does not currently offer a way to input self-selected routes, with Maps users limited to Apple's pre-selected options, but that may change in iOS 18. Apple has pushed an iOS 18 file to its maps backend labeled "CustomRouteCreation." While not much is revealed...
iphone reasons to upgrade

Apple Outlines 'Reasons to Upgrade' Your iPhone on New Website

Monday March 25, 2024 12:53 pm PDT by
Apple today added a "Why Upgrade" section to its website, which is aimed at encouraging customers with older iPhones to upgrade to a newer model. The website allows customers to compare the iPhone 11, 11 Pro, 11 Pro Max, 12, 12 mini, 12 Pro, and 12 Pro Max to the iPhone 15, iPhone 15 Plus, iPhone 15 Pro, or iPhone 15 Pro Max. Each comparison shows what new features someone with an older...