AirPods Max Market Segment Too Niche to Boost Sales, Say Apple Suppliers

[MacRumors]

Apple's suppliers don't expect AirPods Max to boost their sales anything like AirPods earbuds because they believe the over-ear headphones market segment is too niche, according to a new report out today.

Taiwan-based Compeq and Unitech have been shipping rigid-flex boards for AirPods and are said to be supplying the printed circuit boards for AirPods Max too, according to DigiTimes.

However, industry sources said the PCB suppliers don't foresee a significant boost to their sales from AirPods Max, "reasoning that over-ear headphones are positioned as a niche segment with higher prices but smaller market scale compared to earbuds."

The sources cited Canalys statistics showing that the world's quarterly shipments of true wireless stereo (TWS) earbuds came to around 45 million pairs in third-quarter 2019, compared to 20 million for over-ear headphones.

The report notes that JBL, Sony and Bose are "firmly in the leader group" in terms of market share for over-ear headphones. It's worth adding that all three offer headphones at a significantly lower price point than Apple is targeting with AirPods Max, which cost $549.

Indeed, the price has raised eyebrows and led some commentators to question Apple's market strategy for the headphones. Nevertheless, AirPods Max quickly sold out when they were unveiled on Tuesday, and are now backordered until March in all colors.

Article Link: AirPods Max Market Segment Too Niche to Boost Sales, Say Apple Suppliers

 

[dannys1]

Of course it is - and that's what I love most about these. That the biggest tech company in the world is willing to spend R&D making what is essential a niche device and will generate about 0.0001% of the iPhone income.

Even if I don't want the items, I'm very happy when Apple releases niche devices like the XDR display and to a lesser degree these -- because ultimately it's not making them anymore significant money and they could easily not bother.

 

[kingofwale]

wait... you telling me there isn't a market for headphone that's 20dollars more expensive than its competitor while providing less performance??

I'm shocked!!! what is this Intel Macbook?

 

[asdavis10]

Hate the name. On the fence about the design (and case). Have no doubt that the tech is great in these. But we’re probably looking at another HomePod. Not for everyone. And that’s ok. I love my HomePod. But will pass on these.

 

[GadgetBen]

Of course it is - and that's what I love most about these. That the biggest tech company in the world is willing to spend R&D making what is essential a niche device and will generate about 0.0001% of the iPhone income.

Totally agree. Apple just want professional sports players and artists to wear these to strengthen their brand.

Premier League footballers for example are filmed live on TV every week getting off the coaches and going into the dressing rooms with a pair of Apple AirPods. Now it will be these.

 

[gnipgnop]

"It's worth adding that all three offer headphones at a significantly lower price point than Apple is targeting with AirPods Max, which cost $549."

Beats headphones are sold by Apple at lower price points and Beats has a market share that is competitive with JBL, Sony, and Bose.

 

[femike]

It's certainly very niche at $900 here.

 

[zeezun]

why would anyone want a cumbersome piece of metal over their head. headphones not bag of cement.

 

[zeezun]

"It's worth adding that all three offer headphones at a significantly lower price point than Apple is targeting with AirPods Max, which cost $549."

Beats headphones are sold by Apple at lower price points and Beats has a market share that is competitive with JBL, Sony, and Bose.

beats lol? SQ so mehhhhhhhhh

 

[BootLoxes]

Big, heavy, expensive, and lets robbers know exactly who to target. I would rather stick with my airpods. Maybe if future revisions can bring the cost down I might get one for home use only

 

[dannys1]

wait... you telling me there isn't a market for headphone that's 20dollars more expensive than its competitor while providing less performance??

Well that's incorrect, and is still incorrect even if you mean to type $200 - I bet your idea of "competitor" is Bose again isn't it...

 

[dannys1]

beats lol? SQ so mehhhhhhhhh

And yet still better than Bose.

 

[gnipgnop]

beats lol? SQ so mehhhhhhhhh

Read the article: they were claiming that Apple didn't sell headphones in the price range of JBL, Sony, Bose...which is obviously completely wrong.

 

[Populus]

Of course it is - and that's what I love most about these. That the biggest tech company in the world is willing to spend R&D making what is essential a niche device and will generate about 0.0001% of the iPhone income.

Hopefully this will apply to iPhone mini as well. Sales data reveals it is a niche product, or at least, the least popular iPhone size by far.

 

[coredev]

Totally agree. Apple just want professional sports players and artists to wear these to strengthen their brand.

Premier League footballers for example are filmed live on TV every week getting off the coaches and going into the dressing rooms with a pair of Apple AirPods. Now it will be these.

Did I miss it or is there really no Apple logo on them?

 

[indiekiduk]

"Too niche" yet sold out for 3 months?

 

[Bazooka-joe]

Yes it is a niche market and although delivery dates are 12 to 14 weeks, this is just the initial "honeymoon period". Most people that want the headphones will have already put their orders in. It was the same with the HomePods in 2018. Delivery dates slipped quickly due to initial consumer demand but settled down to a trickle very quickly after that.

 

[Reason077]

I'm not sure I agree about this "niche" argument. I don't buy expensive earbuds because they're fiddly and easy to lose, and have relatively poor battery life. I'm happy to stick with the cheap wired earpods. But a good pair of noise cancelling over-ear headphones? I tend to spend a lot of money on those, as do many people I know.

Sure, sales volumes will be higher for earbuds. But what about ASPs and margins?

 

[coredev]

Hopefully this will apply to iPhone mini as well. Sales data reveals it is a niche product, or at least, the least popular iPhone size by far.

That is kind of surprising, because for years we were hearing forum members whine that they really need an up to date iPhone at a smaller form factor.

 

[44267547]

"Too niche" yet sold out for 3 months?

Some say Apple is ‘artificially controlling the numbers’, I say it’s a new product segment that others are ready to experience. But you know, conspiracy theories on Macrumors aren’t reflective of the outside world.

 

[Reason077]

Big, heavy, expensive, and lets robbers know exactly who to target. I would rather stick with my airpods. Maybe if future revisions can bring the cost down I might get one for home use only

I use over-ear headphones at home, and when travelling on airplanes etc. Not when out and about in the city.

 

[AnthonyHarris]

"It's worth adding that all three offer headphones at a significantly lower price point than Apple is targeting with AirPods Max, which cost $549."

Beats headphones are sold by Apple at lower price points and Beats has a market share that is competitive with JBL, Sony, and Bose.

Apple don't just sell beats, they own the company.

 

[haruhiko]

Big, heavy, expensive, and lets robbers know exactly who to target. I would rather stick with my airpods. Maybe if future revisions can bring the cost down I might get one for home use only

You have a much bigger problem than your AirPods Max if robbers are everywhere in the place you live.

 

[BootLoxes]

You have much bigger problem than your AirPods Max if robbers are everywhere in the place you live.

Nah I live in Japan so its not a problem. However most people here are in a western country like america or AU where its much more likely to happen.

 

[Chux@20]

Being in the Apple ecosystem, airpod Pro’s have been convenient to use. Now I also have a Shure A50 and B&0 H95 (both wireless with ANC). For me the key to AirPod Max pricing is, what is the sound quality is like? If it’s anything like the H95 that is priced at £700, it will be a steal. Mind you the AirPod Max bluetooth codec is AAC/SBC, which is less than many much cheaper Bluetooth/ANC brands.