Apple to cut production of AirPods as cheaper wireless earphones sell increase
By Sanjay Maurya
News highlights
- Apple has asked its production lines to reduce the production of AirPods wireless earbuds by 30 percent.
- Apple is facing stiff competition in the wireless headphones market in the US.
- According to Nikkei Asia, Apple now expects to produce between 75 and 85 million units of AirPods in this year.
Apple to cut production of AirPods as cheaper wireless earphones sell increase
Apple is facing stiff competition in the wireless headphones market in the US, and while the iPhone manufacturer is at the forefront, sales of AirPod have fallen behind Apple’s expectations.
According to Nikkei Asia, Apple now expects to produce between 75 and 85 million units of AirPod in this year.
It had previously expected more sales, which is why its previous forecast suggested 110 million units. Apple’s plan to produce AirPods shows that demand for top-notch wireless earbuds, which have become an integral part of the Apple ecosystem, despite double-digit percentage growth since its inception. AirPod was released in 2016.
Apple AirPods are sold in many markets. Reportedly, AirPods Pro earbuds will be sold at the T Mall for CNY 1,498, a 25% discount from the original price of CNY 1,999. They sell for just INR 20,990 compared to the original price of INR 24,900.
According to Counterpoint Research, Apple shipped nearly 72.8 million AirPod in 2020 and became the world’s leading supplier of wireless headphones. This was a total of $ 12.97 billion, up 11% for the year.
Apple has fierce competition in the market not only in the US but also in many other countries including India, where brands like boAt, Realme, Noise, and Redmi sell true wireless headphones for just INR 2,000. According to Counterpoint Research, Apple’s market share declined from 60 percent to 47 percent in 2018 and only 31 percent in 2020.
Apple is now hoping to increase sales to the next generation of AirPod. 3 AirPod should arrive at the Spring Lloyd event, in which Apple brought the new Purple variants of the iPhone 12, the M1 chip iMac, and iPad, as well as a new Apple TV 4K. However, this did not happen. Therefore, it is currently unclear when Apple will launch its next AirPod.
