Apple should not be complacent about its Bluetooth earbuds releases, as the U.S. market becomes more competitive. The AirPods market has seen a decline in sales, but the Cupertino tech giant hopes to turn things around with the upcoming AirPods Pro 3.
What Does the Latest AirPods Data Say?
As of recent data from Consumer Intelligence Research Partners (CIRP), 44% of American iPhone owners currently own Bluetooth earbuds, an increase of only 3% compared to the previous year's 41%.
Among those consumers, 59% opt for AirPods, a slight increase from 57% the previous year. That means AirPods are used by about 26% of all iPhone owners in the country. Though Apple reclaimed some lost ground, the brand isn't gaining significant ground beyond records.
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Apple Faces Fierce Competition in Earbuds Market
Apple still leads the premium wireless earbuds market, but it's not problem-free. MacRumors reported that the iPhone maker will struggle slightly against its competitors, such as Bose, Sony, and Samsung.
Contenders such as Samsung, Sony, and Bose, and even value versions, are challenging Apple's grip. The market is growing slowly, and while Apple is holding onto its share, it isn't gaining any additional ground.
The latest addition to the AirPods series, the AirPods Pro 2, arrived in September 2022. It added significant features such as the H2 chip, enhanced noise cancellation, and better Find My tracking. But over a year later, sector momentum has begun to wear off, and customers just want to try something newer immediately.
Deep Discounts Hint at Inventory Clearance
This year's Amazon Prime Day in July had AirPods Pro 2 fall to $149 from $249, one of the deepest discounts the product has ever seen. Best Buy and Walmart soon followed suit with the price cut, although Apple refused to budge on its site and in stores.
While others saw the discount as a clearance action before a new launch, CIRP indicates that the markdown was instead a strategic sales effort. This could mean Apple wants margin flexibility to drive volume and revive consumer interest in a slowing market.
All attention is now on AirPods Pro 3, which will reportedly debut as early as September, probably in combination with new iPhone and Apple Watch models. The rumored improvements include enhanced Active Noise Cancellation (ANC), revised design, increased audio performance, and new health features.
These upgrades will likely entice first-time and current customers who have aging batteries or older models. Since AirPods rank among the most reordered items on Amazon, the Pro 3 may provide Apple with a fresh growth driver amid the declining iPhone upgrade pace.
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