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.