AirPods to replace iPhone as Apple's new icon
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When iPhone sales began to slow down, experts and observers paid more attention to the service department - the goose that laid the golden eggs. However, Apple's latest business report is an important reminder of the wearable device segment, including Apple Watch and AirPods. They even have signs of surpassing products that have made Apple names for many years, turning AirPods from iPhone accessories into a potential growth field.
Specifically, Apple's wearables, smart houses, and accessories have surpassed the iPad division and have been close to the Mac division. This division contributed $ 5.5 billion in revenue in the second quarter of 2019, while revenue from the iPad was $ 5 billion and the Mac was $ 5.8 billion. Analysts from Keybanc Capital Markets, Nomura and Credit Suisse both agree that AirPods and Apple Watch will drive growth for Apple. In particular, AirPods are very strong.
Apple has not announced specific AirPods sales since the introduction of wireless headsets in 2016. Even so, third parties estimate the number is not small. Apple accounted for 60% of the wireless headset market share in the fourth quarter of 2018, according to Counterpoint Research. According to expert Ming Chi Kuo, in 2018, Apple could sell about 26 million to 28 million AirPods and increase to 50 million to 55 million units in 2019 thanks to the second-generation AirPods.
Of course, AirPods are not the only accessories with remarkable growth rates. Besides, it also has Apple Watch, especially when Apple’s smartwatch is more expensive than AirPods. According to Strategy Analytics, Apple Watch accounted for 51% of the global smartwatch market share in the fourth quarter of 2018. However, what makes AirPods more special is that, like the iPhone, it has become a symbol of the youth. Despite being laughed at when it first appeared in 2016, AirPods quickly received the attention and became the main character of many funny images online due to high selling prices.
Many stars such as Miley Cyrus and Travis Scott all bought AirPods in cooperation with Louis Vuitton for $ 1,000. In 2017, Apple’s CEO called AirPods a "cultural phenomenon" at the annual shareholder meeting. Apple repeated this again on the WWDC 2019 stage when it demonstrated its personal emoji customization with AirPods in iOS 13. It shows that Apple believes that AirPods represent themselves as jewels or eyeglasses.
Apple may never be as successful and influential as the iPhone again. However, with AirPods, at least it proves to be able to make a new product popular as the iPhone did with smartphones over the past decade.
By: Jonath Martin