AirPods Pro alone could bring Apple $6 billion in revenue this year

Apple’s AirPods have been a runaway success. They’ve helped spawn an entire category of “true wireless” earbuds that are, as usual, are being copied by the usual knockoff outfits. And Apple’s AirPods Pro true wireless earbuds, which provide an improved design and active noise-cancelling technology, are an even bigger blockbuster money maker. One analyst thinks AirPods Pros alone could bring in as much as $6 billion in revenue for Apple in 2020.

AirPods Pro revenue. Pictured: AirPods Pro
AirPods Pro are packed with audio innovation to deliver superior sound and an immersive noise-canceling experience.

Daniel Howley for Yahoo Finance:

According to Jefferies analyst Kyle McNealy, web traffic to Apple’s AirPods page was up 454% year-over-year for the December quarter, with 56% of that coming from the AirPods Pros page.

In fact, online deliveries of AirPods Pros ordered through Apple’s site are backed up for at least a month. Brick-and-mortar Apple Stores are also sold out through the month… “We’re modeling for $5.97bn of revenue generated by AirPods Pro in FY’20,” McNealy wrote in an analyst note. “Applying an average gross margin of 32.5% and company average opex rates yields $953m of net income. This translates to $0.22 per share and to 2% Y/Y earnings growth for the company versus Fiscal 2019.”

Apple doesn’t break out the revenue for AirPods alone, but McNealy has estimated that all AirPods models brought in $7.25 billion in 2019. So to see the Pros power $6 billion on their own in 2020 would be a heck of a jump.

MacDailyNews Take: For some perspective, Apple’s AirPods Pro alone, not counting AirPods, bring in more revenue per year than Microsoft’s entire Surface lineup ($5.719 billion for all of 2019). And AirPods Pro cost just $249, much less than any Microsoft Surface kludge.

8 Comments

  1. I get a kick out of how Apple is known as the company that killed the smartphone headphone jack. Of course, a year or two later, all smartphone companies decided to kill the headphone jack in order to make money selling BT headphones. Yeah, Apple was the “bad guy” who turned aftermarket BT headphones into a multi-billion-dollar business. Now the people who criticized Apple have nothing to say as practically all flagship smartphones are minus a headphone jack.

    It’s strange how no one saw that as innovation, but I guess the definition of innovation varies from person to person. I wonder what’s going to happen to all those people who swore they will never buy a smartphone that doesn’t have a headphone jack. No more smartphones for them. Hehe. I guess the next thing people will say is how they’ll never buy a smartphone without any ports. Yeah, sure. Guess what? They’ll lose to Apple yet again. I think it will just be one less hole to worry about getting damaged. Losing a port is really not that big of a deal as long as something reliable replaces it.

    1. The major downside to removing the audio jack from the iPhone is limiting the already meager options for using an external microphone. There are only a couple of serviceable lightning jack options, which makes using a separate recording device and adding the audio track to the video in post-production practically necessary.

      I can understand that some people want to use their high-end headphones to listen to music, but it’s an edge case compared to the 100 million or so Airpods already sold and untold millions more off-brand wireless headphones. I only used Earpods a few times and hated the cord getting tangled and twisted. If you can’t afford Airpods just buy cheap wirless earphones for $20, I started with ones connected to each other with a cord. I’d have a hard time even going back to those after using Airpods, I listened to more music, podcasts and audio books on my iPhone within a few months of getting them than I had for 10 years prior.

      1. I’m cool with removing the Apple headphone jack. What I can’t understand is why Apple hasn’t worked with a third party to come up with a case (that I can find) that offers a case with lightning, USB-C, and headphone ports (even better extra battery). I would love an iPhone 11 Pro. And LOLZ at MDN bragging on the $249 cost of the AirPods Pro, those of use with kids to feed much prefer wired headphones that cost less than ¹⁄₁₀ as much to replace when they inevitably break or get lost.

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