AirPods Max Market Segment Too Niche to Boost Sales, Say Apple Suppliers
Apple's suppliers don't expect AirPods Max to boost their sales anything like AirPods earbuds because they believe the over-ear headphones market segment is too niche, according to a new report out today.
Taiwan-based Compeq and Unitech have been shipping rigid-flex boards for AirPods and are said to be supplying the printed circuit boards for AirPods Max too, according to DigiTimes.
However, industry sources said the PCB suppliers don't foresee a significant boost to their sales from AirPods Max, "reasoning that over-ear headphones are positioned as a niche segment with higher prices but smaller market scale compared to earbuds."
The sources cited Canalys statistics showing that the world's quarterly shipments of true wireless stereo (TWS) earbuds came to around 45 million pairs in third-quarter 2019, compared to 20 million for over-ear headphones.
The report notes that JBL, Sony and Bose are "firmly in the leader group" in terms of market share for over-ear headphones. It's worth adding that all three offer headphones at a significantly lower price point than Apple is targeting with AirPods Max, which cost $549.
Indeed, the price has raised eyebrows and led some commentators to question Apple's market strategy for the headphones. Nevertheless, AirPods Max quickly sold out when they were unveiled on Tuesday, and are now backordered until March in all colors.
Popular Stories
Apple has announced it will be holding a special event on Tuesday, May 7 at 7 a.m. Pacific Time (10 a.m. Eastern Time), with a live stream to be available on Apple.com and on YouTube as usual. The event invitation has a tagline of "Let Loose" and shows an artistic render of an Apple Pencil, suggesting that iPads will be a focus of the event. Subscribe to the MacRumors YouTube channel for more ...
Apple today released several open source large language models (LLMs) that are designed to run on-device rather than through cloud servers. Called OpenELM (Open-source Efficient Language Models), the LLMs are available on the Hugging Face Hub, a community for sharing AI code. As outlined in a white paper [PDF], there are eight total OpenELM models, four of which were pre-trained using the...
Apple is set to unveil iOS 18 during its WWDC keynote on June 10, so the software update is a little over six weeks away from being announced. Below, we recap rumored features and changes planned for the iPhone with iOS 18. iOS 18 will reportedly be the "biggest" update in the iPhone's history, with new ChatGPT-inspired generative AI features, a more customizable Home Screen, and much more....
Apple has dropped the number of Vision Pro units that it plans to ship in 2024, going from an expected 700 to 800k units to just 400k to 450k units, according to Apple analyst Ming-Chi Kuo. Orders have been scaled back before the Vision Pro has launched in markets outside of the United States, which Kuo says is a sign that demand in the U.S. has "fallen sharply beyond expectations." As a...
Apple is finally planning a Calculator app for the iPad, over 14 years after launching the device, according to a source familiar with the matter. iPadOS 18 will include a built-in Calculator app for all iPad models that are compatible with the software update, which is expected to be unveiled during the opening keynote of Apple's annual developers conference WWDC on June 10. AppleInsider...
Top Rated Comments
Even if I don't want the items, I'm very happy when Apple releases niche devices like the XDR display and to a lesser degree these -- because ultimately it's not making them anymore significant money and they could easily not bother.
Beats headphones are sold by Apple at lower price points and Beats has a market share that is competitive with JBL, Sony, and Bose.