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

[gplusplus]

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.

I don’t think we’re looking at another HomePod at all. The HomePod was intended for anyone and everyone to purchase, placing Siri permanently in everyone’s home. It wasn’t a niche market, which is starkly different from the AirPods Max. The reason why it flopped is because of the competition; people could put Alexa or Google all over their entire home for the same cost as putting Siri in one room, plus HomeKit compatibility of third party devices, an absolute must, was simply not there. It failed because it was defeated by other products, not because they didn’t have anyone to sell it to.

The AirPods Max is for a niche market when compared to AirPods or AirPod Pros, but it’s not extremely niche like the Apple Pro Display XDR. Unlike the Pro Display XDR, it won’t be something professionals are interested in, simply because of the lack of professional IO, added latency, and undocumented frequency response.

They’re clearly targeting consumers. The AirPods Max is for the person who just wants a superior set of wireless headphones and doesn’t mind paying the money. That’s the niche market.

 

[Precursor]

"Too niche" yet sold out for 3 months?

"Sold out"? More like they released the product before they setup the supply chain for it to see the hype first

 

[Spock]

I don’t plan on buying a pair, I have have to many concerns over the battery, price and how I use headphones. With that being said, I feel like some of these products are almost like a public beta to get the kinks worked out to either sell a better version or cheaper version. It’s nothing new, the MacBook Air when first introduced was a very expensive system that pretty much started a design evolution across the entire notebook industry and now it’s the lowest cost MacBook. Same with the HomePod, they lowered the price and then introduced a lower cost version. I think this is the first step into over the ear headphones for the Apple brand and we will start seeing lower cost options while at the same time pushing the Beats brand out. I also think that is what they are doing with the Pro XDR stand, I would be shocked if that doesn’t end up on a future iMac or iMac Pro.

 

[cardfan]

They're backorded through March 2021, so it seems like there are a few reasons.

Amazing how limited supply makes demand look. These will easily be discounted a hundred or two to move them next year.

 

[Reason077]

I own a pair of WH1000XM3s. They were expensive and are good, but in my country the Airpods Max are literally over twice the price of XM4s. I think only Apple diehards will be able to justify them.

I have the XM3s also. They're good headphones, in fact the best I've ever bought (comfort is unmatched, and they're the only headphones I've owned in years that haven't broken within a year or so!), but they're not perfect. The software is pokey. Some aspects of the UX aren't great (switching between devices. Nearly useless microphone. Stupid touch panel - arrgh!). And mine have developed a somewhat annoying hiss in one side when noise cancelling is on.

They also have that "plasticky" Sony build feel and annoying creak in the headband when they move around.

Some of this stuff might be fixed on the XM4s, but I'm seriously tempted to go for Apple's as my next purchase. The AirPods Max have some clear advantages over the XM4: 9 microphones, surround sound with huge suite of positioning sensors including gyroscope and accelerometer etc. Presumably the sound quality and NC will be at least as good as Sony's, and the software, UX and "build quality" are guaranteed to be significantly better.

The only unknown for me is whether the comfort matches the XM3s when worn for long periods. Weight is a concern. But I'm certainly willing to give Apple's a shot.

 

[Gorms]

Less niche, more "Jeeeeeesus wow, that's an amount money".

 

[skaertus]

Is it a niche segment today? Absolutely. But what I see happening is that Apple entering this segment will take it from being something for a 0.01% market segment to being a 2-5% market segment in within 2 or 3 years, and then owning the majority of this new market. I expect Bose and Sony too to follow with 'higher end' offerings.

2-5% of which market segment. 2-5% of the current market of wireless headphones? Perhaps, and even likely, given it is already a high-end market. 2-5% of all headphones? Difficult, as there are so many cheap options available, and the vast majority of people simply do not care enough. 2-5% of the entire population? I seriously doubt.

Perhaps in the U.S., it gets more traction. I don't see the AirPods Max being anything other than a very expensive curiosity in the majority of other markets, especially lower-income countries. AirPods are a huge success for sure, and they may sell a combined 100 million units this year. But the Max is over three times the price of the regular AirPods, and much less convenient to carry around.

 

[anthogag]

I don’t believe these will be “niche”. It could be limited only by affordability.

 

[ApplesAreSweet&Sour]

I don’t doubt the features or quality of the AirPods Max, but let’s get real about the whole thing: They will sell like hot cakes because A. people want to be seen with them, letting people how much money and style, and good taste they have, and B. because tons of carriers are selling them on 0% interest rate payment plans letting just about anyone with a bare minimum credit score join in on the fun. There aren’t a lot of carriers who offer deals on similar headphones from other brands.

The AirPods brand is like that hot band that’s so cool to like that people pre-order millions of their new album and sell out all of the shows in a day or two even though nobody has heard a single second of the new songs. Then the reviews from all the trendy magazines praise the new release and further cement the cultural value of the band.

Sony, Bose, JBL, probably offer products that offer the same features or similar or better (looking at price and value together). But no matter how much bang for your buck they get you, none of those brands have built cultural value into their products.

AirPods are as cool Radiohead and as mainstream as The Beatles. All while next to nobody can name a “song” by Sony or Bose.

The functionality of the AirPods Max is not worth considering when the cultural capital they provide is as huge as it is. Most AirPods buyers have no need for these but they are the largest market demographic. Apple is offering that must-have pair of Yeezys that every kid wants to be seen wearing but as tech products.

AirPods are evergreen by now and will sell in perpetuity. The AirPods Max will be a massive success.

Most consumer tech sells at least 50% because of the design and visual identity of the product -Apple purposefully makes slightly ugly or odd looking products so that there’s no mistaking them for other brands. Combining that with premium looking materials and you got yourself a best seller.

 

[Chompineer]

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...

Sony XM3/4 more like.

 

[Precursor]

Is it a niche segment today? Absolutely. But what I see happening is that Apple entering this segment will take it from being something for a 0.01% market segment to being a 2-5% market segment in within 2 or 3 years, and then owning the majority of this new market. I expect Bose and Sony too to follow with 'higher end' offerings.

Newsflash: In a world where there are $30-$40 bluetooth headphones on Amazon, Bose and Sony were ALREADY offering "high end" headphones for $300-$400. I highly doubt Apple can achieve 5% market segment in wireless headphones with prices like these. People use these wireless headphones for the convenience, not for necessity. Putting the very high price tag doesn't make a product "high end".
You just can't be "innovative" by reinventing the wheel.

 

[cote32mt]

Never understood people who wear big over ear headphones or AirPods in the street.

Walking about these days requires complete attention. Cutting off one of your senses is just you asking to be mugged.

The only time I wear big headphones is at home. When I’m travelling I use AirPods but only when I’m sat for long periods on a train or flight.

Wearing noise canceling headphones at home can become hazardous when your significant other has to start yelling and waving arms at you to be heard. Not to mention the sneers and grimacing looks. I know this first hand.

 

[Hastings101]

Most people are just fine with cheap earbuds or in-ear AirPods and I’m sure Apple knows it. This just buys them some reputation in the audiophile, as well as the wannabe audiophile, market (assuming these are actually decent, who knows...) and more importantly gives them another status symbol to sell. Good move by Apple in my opinion

 

[votdfak]

"Transparency mode". Nothing is cut off. You hear all your surroundings. Good at work as well. And I absolutely hate sticking anything into my ears.

Exactly, and you even hear better with transparency mode.

 

[votdfak]

Wearing noise canceling headphones at home can become hazardous when your significant other has to start yelling and waving arms at you to be heard. Not to mention the sneers and grimacing looks. I know this first hand.

you just turn on transparency and NC is not working vs voices

 

[Precursor]

I don’t doubt the features or quality of the AirPods Max, but let’s get real about the whole thing: They will sell like hot cakes because A. people want to be seen with them, letting people how much money and style, and good taste they have,

That's BS.
When iPads were first released people were embarrassed to be seen using them in public. How it became a standard piece of technology is not because people wanted to be seen with them, but because iPads became more and more useful that nowadays it can easily replace a standard laptop for a majority of people. Families even giving old models to toddlers to spend time with.

AirPods Max will NEVER sell like hot cakes. They will never increase in function, as they are what they are, headpones. Earcups and cables of different colors for sale make them the Nokia of headphones, only for x10 the price.

 

[ipponrg]

This just buys them some reputation in the audiophile, as well as the wannabe audiophile, market (assuming these are actually decent, who knows...) and more importantly gives them another status symbol to sell. Good move by Apple in my opinion

Depends which audiophile crowd you're talking about here. The Beats Studio had an acceptable reputation amongst wired headphones but was no where near the top of people's lists. I

I think the target audience here is going to be the HomePod crowd which are those that buy into very opinionated audio and feature characteristics. I do not think this is a direct competitor to the Bose 700 or Sony xm4s due to price and portability.

 

[Mr.Blacky]

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.

Please post a link for iPhone 12 mini sales data. I can't really find the it.

 

[NT1440]

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.

I snatched one immediately because I doubt there’s going to be a mini again for several years at least. Got rid of my 11 pro for it, but I fully understand that most people just like large phones these days 🤷‍♂️

 

[ApplesAreSweet&Sour]

That's BS.
When iPads were first released people were embarrassed to be seen using them in public. How it became a standard piece of technology is not because people wanted to be seen with them, but because iPads became more and more useful that nowadays it can easily replace a standard laptop for a majority of people. Families even giving old models to toddlers to spend time with.

AirPods Max will NEVER sell like hot cakes. They will never increase in function, as they are what they are, headpones. Earcups and cables of different colors for sale make them the Nokia of headphones, only for x10 the price.

You do realize they’re already sold out in nearly all markets?

To most buyers, AirPods are just as much a fashion statement as they are anything else because they feature a design that’s instantly recognizable, visually. The same will be true for the Max, it’s just a matter of time and Apple maybe doing a little advertising with some cool celebrities.

The features and hardware will also be great but that’s secondary to most consumers (who are not audiophiles).

 

[Precursor]

You do realize they’re already sold out in nearly all markets?

To most buyers, AirPods are just as much a fashion statement as they are anything else because they feature a design that’s instantly recognizable, visually. The same will be true for the Max, it’s just a matter of time and Apple maybe doing a little advertising with some cool celebrities.

The features and hardware will also be great but that’s secondary to most consumers (who are not audiophiles).

You do realize they didn't sell out in any market because they didn't have any in stock to begin with?

Also not everybody wants to spend the money they don't have to buy a product they can't afford to impress people they don't like.

Edit: Nobody that I know who purchased Airpods Pro bought them as "fashion statement", they're all actively using the Airpods for function and convenience.

 

[ApplesAreSweet&Sour]

That's BS.
When iPads were first released people were embarrassed to be seen using them in public. How it became a standard piece of technology is not because people wanted to be seen with them, but because iPads became more and more useful that nowadays it can easily replace a standard laptop for a majority of people. Families even giving old models to toddlers to spend time with.

AirPods Max will NEVER sell like hot cakes. They will never increase in function, as they are what they are, headpones. Earcups and cables of different colors for sale make them the Nokia of headphones, only for x10 the price.

iPads are not wearable, no reason in comparing the two.

 

[dwsolberg]

I don't mind that Apple makes very expensive headphones because they also make cheaper ones, so you can choose what to buy based on your means, your needs, and your desires.

 

[Jax44]

Whats with all the muggings phobia , never in my life I witnessed or experienced one , pushing 4 decades now .... who is going to mug you for your headphones .... its like stealing TV`s , it isnt a thing anymore , its not worth the risk.
Walking in some deserted alley at 2 in the morning , sure maybe you get mug , but it wont be because you are walking about with your headphones on.

It's the usual "New Apple Product" fear mongering. iPhone with Touch ID :" They will cut off your fingers...". Apple Watch: " They will cut off your hand!!!".
Anything to try to subdue sales.

 

[rulymammoth]

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.

I’m surprised too. Really thought the size combined with the price would be a hit.