Next-Gen AirPods to Spark Intense Competition in Smart Earbuds Market Next Year

Continuing improvements to Apple's popular AirPods wireless earphones will trigger an intense round of ear-device innovation and competition in 2019 as tech companies look to other avenues for growth amid declining smartphone sales, according to respected analyst Ming-Chi Kuo.

In a research note published today and obtained by MacRumors, Kuo predicted that AirPods, which are the most successful current Apple product, will rapidly grow in popularity next year when upgraded models appear, with many brands to follow Apple's steps with their own competing products. Kuo also laid out how he expects the in-ear devices to evolve over the coming years in the context of Apple's ecosystem.

airpods side

We believe that the AirPods are more than just earbuds for Apple and will become increasingly important in Apple's ecosystem for the following reasons. (1) They increase the switching costs for users to Android from the iOS ecosystem. (2) This is an important device for voice assistant/AI services because it can easily enable the voice assistant. (3) The ear is a perfect sensing area for detecting various health data. It may integrate with the Apple Watch to offer better health management in the future.

For an idea of the potential health integrations Apple has in mind for future AirPods, a new patent awarded to Apple on Tuesday (spotted by 9to5Mac) shows AirPod-like devices performing heart rate monitoring and taking body temperature measurements.

With smartphone shipments slowing, more brand vendors are said to be paying attention to wireless earbud sales as a way to generate growth in the near-term, with a view to long-term strategic improvements in the ear-device space, according to Kuo.

Google and Amazon are expected to become Apple's main competitors in the emerging market, due to the former's Android influence and the latter's mature Alexa voice assistant. AirPod-like products from both companies are expected to be launched in the second half of next year.

We believe that AirPods' success has drawn Google and Amazon's attention and these two companies will launch AirPod-alike products in 2H19. The combined shipments of two brands will likely reach 10–20mn units in 2H19. Goertek (assembly) and Unitech (Rigid-flex PCB) are sole suppliers for Google and Amazon. We think that Google and Amazon are Apple's main competitors because Google is the most influential brand in the Android ecosystem and Amazon has the best voice assistant service.

Earlier this week, Kuo said he expected Apple's AirPods to see "dramatic growth" over the next two years, with new AirPods with a wireless charging case to debut in the first quarter of 2019, and an "all-new design model" following in the first quarter of 2020.

Kuo also said that fewer than 5 percent of iPhone users currently own AirPods, and with over 1 billion iPhone users worldwide, there are "great potential growth opportunities" for the accessory. Almost a year ago, Kuo predicted Apple would launch upgraded AirPods in the second half of 2018, but Apple's difficulties in bringing its AirPower charging mat to market likely impacted those plans.

Just ahead of Apple's October media event, Kuo said he was uncertain about the timing for an AirPods update, suggesting the new models could come late in the fourth quarter or early in the first quarter of 2019.

Related Roundup: AirPods 3
Buyer's Guide: AirPods (Neutral)
Related Forum: AirPods

Top Rated Comments

BruiserBear Avatar
56 months ago
I continue to be amazed at how well these sell given how ridiculous they look on people.
Score: 22 Votes (Like | Disagree)
tromboneaholic Avatar
56 months ago
I continue to be amazed at how well these sell given how ridiculous they look on people.
They look the same as the regular EarPods without wires, and these days people with wires are starting to look a bit silly....
Score: 12 Votes (Like | Disagree)
Scottsoapbox Avatar
56 months ago
Smart earbud market? Now you're just making things up.
Score: 11 Votes (Like | Disagree)
daveheinzel Avatar
56 months ago
Of all the Apple products I’ve owned over the past few decades, AirPods might be my favorite. I love them so much.
Score: 11 Votes (Like | Disagree)
deckard666 Avatar
56 months ago
Again brand awareness is everything - I see an android watch or in-ear headphones and have no idea which brand they belong to whereas both the airpods and apple watch are instantly recognisable. Well done A :)
Score: 10 Votes (Like | Disagree)
bluush Avatar
56 months ago
AirPods refuse to stay in my ears, have mediocre sound and look ridiculous. Apple has a long way to go in order to improve these things. As of now, they simply see them as a way to generate more revenue because their lack of creativity with the iPhone is hurting them.
Score: 9 Votes (Like | Disagree)

Popular Stories

iOS 17 on Phone Feature

Gurman: iOS 17 to Provide Several 'Most Requested Features'

Sunday March 26, 2023 6:05 am PDT by
Apple changed the strategy for iOS 17 later in its development process to add several new features, suggesting that the update may be more significant than previously thought, Bloomberg's Mark Gurman reports. In January, Gurman said that iOS 17 could be a less significant update than iPhone updates in previous years due to the company's intense focus on its long-awaited mixed-reality...
dynamic island

iPhone 15 Dynamic Island to Include New Integrated Proximity Sensor

Friday March 24, 2023 12:27 am PDT by
This year, all iPhone 15 models will include Apple's Dynamic Island that unifies the pill and hole cutouts at the top of the display, but there will also be a material change to the feature that wasn't included in the iPhone 14 Pro models. According to a new tweet by Apple industry analyst Ming-Chi Kuo, the proximity sensor on the iPhone 15 series will be integrated inside the Dynamic Island ...
top stories 25mar2023

Top Stories: iPhone 15 Pro Design Leak, iOS 16.4 Coming Soon, and More

Saturday March 25, 2023 6:00 am PDT by
We're still almost six months away from the official unveiling of the iPhone 15 lineup, but it seems like every day we're learning more about what to expect from the next-generation models. Notably, this week gave us our clearest look yet at what appear to be some changes for the volume and mute control hardware. iOS 16.4 and associated releases are also right around the corner with some new ...
Hero0009

Best Apple Deals of the Week: Samsung's Smart Monitor M8 Gets Massive $250 Discount, Along With Year's Best AirPods Prices

Friday March 24, 2023 10:23 am PDT by
We saw a lot of great deals on Apple products and related accessories this week, including Samsung's iMac-like Smart Monitor M8 for $250 off, a 30 percent off spring sale at Anker, and the year's best prices on numerous AirPods models. All of these deals are still available to purchase right now, so we're recapping them and more below. Note: MacRumors is an affiliate partner with some of these ...
Steve Jobs Theater dusk

Apple Reportedly Demoed Mixed-Reality Headset to Executives in the Steve Jobs Theater Last Week

Sunday March 26, 2023 5:53 am PDT by
Apple showcased its mixed-reality headset to the company's top 100 executives in the Steve Jobs Theater last week, according to Bloomberg's Mark Gurman. In the latest edition of his "Power On" newsletter, Gurman explained that the "momentous gathering" is a "key milestone" ahead of the headset's public announcement planned for June. The event was intended to rally Apple's top members of...
apple mixed reality headset concept by david lewis and marcus kane

Some Apple Employees Seriously Concerned About Mixed-Reality Headset as Announcement Draws Closer

Sunday March 26, 2023 8:25 am PDT by
Some Apple employees are concerned about the usefulness and price point of the company's upcoming mixed-reality headset, The New York Times reports. Apple headset concept by David Lewis and Marcus Kane Initial enthusiasm around the device at the company has apparently become skepticism, according to eight current and former Apple employees speaking to The New York Times. The change of tone...
iphone 14 pro max deep purple feature purple

iPhone 15 Pro Rumor Recap: 10 New Features and Changes to Expect

Thursday March 23, 2023 6:42 am PDT by
While the iPhone 15 series is still around six months away from launching, there have already been plenty of rumors about the devices. Many new features and changes have been rumored for the iPhone 15 Pro and iPhone 15 Pro Max in particular. Below, we have recapped 10 changes rumored for iPhone 15 Pro models that are not expected to be available on the standard iPhone 15 and iPhone 15 Plus:A1...
iOS 16

iOS 16.4 Will Add These 8 New Features to Your iPhone

Sunday March 26, 2023 8:06 am PDT by
Following nearly six weeks of beta testing, iOS 16.4 is expected to be released to the public as soon as this week. The software update includes a handful of new features and changes for the iPhone 8 and newer. To install an iOS update, open the Settings app on the iPhone, tap General → Software Update, and follow the on-screen instructions. Below, we have recapped eight new features and...