Apple’s AirPods make more money than Spotify, Twitter, Snapchat, and Shopify combined

AirPods Pro bring the magic of AirPods to an all-new lightweight, in-ear design.
AirPods Pro bring the effortless magic of AirPods to an all-new lightweight, in-ear design.

Kevin Rooke:

Imagine a startup with $12 billion of revenue, 125%+ YoY revenue growth (two years in a row), and Apple-esque gross margins (30-50%). Without knowing anything else about the business, what would you value it at? $50 billion? $100 billion? More?

That’s Apple’s AirPods business… AirPods sales are growing at triple digit rates each year. In 2018, AirPods revenue grew 133% over 2017, and in 2019 AirPods revenue was up another 128% over 2018.

This is what AirPods revenue looks like compared to some of the world’s top tech companies. AirPods make as much money as Spotify, Twitter, Snap, and Shopify *combined*. And considering their triple-digit growth two years in a row, I would be shocked if AirPods didn’t earn more money than Uber in 2020.

AirPods revenue vs. top tech companies

MacDailyNews Take: Plus, as Rooke notes, there is huge headroom remaining for AirPods as there are sales of only some 110 million AirPods units so far, into an installed base of 900+ million iPhones. Also, don’t forget Apple’s Beats headphones sales.

We look forward with great anticipation to the AirPods App Store or at least a section in the App Store for audio-first apps.

8 Comments

  1. Also amazing… AirPods customers are only (existing or brand new) Apple customers. The target audience for AirPods is intentionally restricted. It’s the same for Apple Watch. Watch customers are only (existing or brand new) Apple customers, actually MORE restrictive because they need to be iPhone users.

    That means future growth will be even MORE explosive, as more Apple customers buy AirPods, more existing AirPods users upgrade to Pro, AND more Android users from that HUGE pool become Apple loyalists.

    Who else intentionally resists a product’s potential customer base and improves overall results? Apple does it ALL the time 😁

      1. They may work, but they’re not designed to work with seamless ease like they do with Apple’s products. And Apple does not market them for sale to Android users. Therefore, Apple is intentionally restricting sale of AirPods to Apple users.

    1. “Who else intentionally resists a product’s potential customer base and improves overall results? Apple does it ALL the time”

      Someone who wants total control of the user and leverages product A to sell product B, sometimes by artificial necessity. You really believe they removed the headphone jack for space saving?

      1. Yes! Another driving force is the development of the necessary wireless technologies to enable devices like AirPods, AR glasses, Apple Watch features, etc. This is painfully obvious. You can look at teardowns of recent iPhones and see that the headphone jack space has been used in very practical ways and Apple will still need more space yet for new technologies. Apple cannot implement their future vision for devices while staying tethered to wires. The jack had to go. Every phone will be wireless within ten years, save for a few niche use cases. For someone who hangs out on a tech site you are surprisingly anachronistic.

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