Launched nearly three years ago by Apple, AirPods is expected to have single-handedly surpassed Twitter and Snapchat’s combined revenue for the last year 2019.
Launched nearly three years ago by Apple, AirPods is expected to have single-handedly surpassed Twitter and Snapchat’s combined revenue for the last year 2019. Sales of Apple’s AirPods almost doubled to $6 billion in the last year 2019, Toni Sacconaghi, a senior sell-side equity research analyst at Sanford C Bernstein, said in a recent research note. On the other hand, Twitter’s revenue for the full year is expected to reach $3.3 billion, while Snap Inc’s is expected to have earned $1.72 billion in 2019 revenue.
Toni Sacconaghi, in a note, further estimated that AirPod sales can take a leap this year and could generate $15 billion in revenue by selling 85 million AirPods in 2020. Growing at this pace by 2021, the product is likely to become Apple’s third-largest business. Moreover, the size of the global market for true wireless hearables is expected to touch 230 million units in 2020, growing 90 per cent year on year (YoY), a report by Counterpoint Research shows. Apple Airpods has already grabbed 45 per cent of the entire true wireless hearables market. Apple is expected to show a significant turnaround in Q4FY20 fuelled by AirPods Pro.
Meanwhile, the two Chinese manufacturers of Apple’s wireless earbuds are in talks to borrow hundreds of millions of dollars from banks to expand production in Vietnam, according to a media report.
While Apple Airpods has steep adoption curve, Sacconaghi said due to rapid saturation of the iPhone installed base, a deceleration in AirPods revenue growth by 2021 or 2022 can be seen to single digit growth rates or possibly lower. “There’s also a subset of iPhone owners that bought used handsets and may not be willing to spend $159 on a pair of AirPods,” the analyst said in the note. AirPods come in two variants: The Pro, which is sold for $249 on Apple’s website and the regular AirPods which start at $159.