Apple’s AirPods business is bigger than you think

New AirPods build on the magical experience customers love delivering 50 percent more talk time, hands-free “Hey Siri” and the option of a new Wireless Charging Case.
New AirPods build on the magical experience customers love delivering 50 percent more talk time, hands-free “Hey Siri” and the option of a new Wireless Charging Case.

Don Reisinger for Fortune:

Apple’s AirPods wireless earbuds may be small in size, but they’re a huge business.

This year, the company will sell 50 million AirPods, at $159 for a pair, according to Wedbush analyst Dan Ives. That would translate into nearly $8 billion in revenue.

Apple is crushing the competition with AirPods. Last year, it accounted for 60% of the global wireless earbuds market, easily surpassing Jabra’s Elite Active 65t, which had a 10% share, according to Counterpoint Research.

If the $8 billion figure for AirPods revenue is accurate, that business alone would rank No. 384 in the Fortune 500, just ahead of Foot Locker, Motorola, and chipmaker AMD… Apple’s gross profit from AirPods exceeds what many major technology companies generate in revenue annually, including Twitter and computer security company Symantec.

MacDailyNews Take: Anyone who claims Apple hasn’t released a new hit product since the death of Steve Jobs hasn’t considered Apple’s wearables business which includes not just AirPods, but the market-dominating Apple Watch, the world’s best-selling watch.

8 Comments

  1. are they really as good as you say. it wouldn’t matter what the market share. how are they for large ensembles, symphony, piano concerti. i’ve never been happy with ear buds, the last ones i bought were by shure, very expensive. i still wasn’t happy with the sound.

  2. There are exceptions, but Apple does have to admit that their wearables push is now parodied as much as the glassholes were. What I have heard isn’t flattering.

    “Airpods are fashion earrings for yuppie lemmings.”
    “Is she too self-important to drop out her ear implants when attending the meeting?”
    “He isn’t paying attention. Airpod hearing syndrome strikes again.”
    “Will everyone in the room please silence their phones … You headphone and watch people too.”
    Or my favorite “Siri, please tell this guy to take out his ear thingies so I can communicate with him.”

    Not my words, but the impressions of people I know who don’t wear disposable plastic bluetooth headphones at all waking hours. Stop pretending you are an awesome multitasker, others are onto you. The lack of simple etiquette ruins the shiny sophisticated white image Apple tried so hard to create.

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