KGI: AirPods Shipments Will Double Next Year Given Strong Demand

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AirPods will remain one of Apple's most popular accessories in 2018, with shipments likely to double to an estimated 26-28 million units on a year-over-year basis, according to Apple analyst Ming-Chi Kuo.


Kuo said there has been strong demand for AirPods, which he views as the most important accessory in Apple's wireless ecosystem. His prediction implies AirPods shipments will total 13-14 million units in 2017.

An excerpt from Kuo's latest research note with investment firm KGI Securities, a copy of which was obtained by MacRumors:
We believe demand for AirPods has been strong, and note that the shipping time of the product on Apple's official shopping website has shortened to 1-3 days, mainly thanks to an improved assembly process and increased capacity from Luxshare as the new assembler [...] We expect AirPods to remain one of the most popular Apple accessories in 2018, with shipments likely to rise 100% YoY to 26-28mn units next year.
Chinese company Luxshare could become the main assembler of AirPods in 2018, with a higher order allocation than fellow supplier Inventec, after improving its assembly process and increasing production capacity.

Apple doesn't break out AirPods sales like it does with iPhones, iPads, and Macs. Instead, it groups the wireless earphones under its "Other Products" category, alongside Apple TV, Apple Watch, Beats, iPods, and other accessories.

Apple reported revenue of $3.2 billion from its "Other Products" category last quarter, up 36 percent year over year.

Last month, on an earnings call, Apple CEO Tim Cook said he was "thrilled with the momentum" of AirPods. He boasted that Apple's entire wearables business generated the annual revenue of a "Fortune 400" company in the 2017 fiscal year.
The combination of music streaming on Apple Music and AirPods is truly a magical experience for people on the go. We're thrilled with the momentum of these products. In fact, our entire wearables business was up 75 percent year over year in the fourth quarter, and in fiscal 2017, already generated the annual revenue of a Fortune 400 company.
AirPods launched for $159 in December 2016 after a two month delay, but orders on Apple's website faced a six-week shipping estimate until August 2017 as Apple struggled to improve the supply-demand balance of the wireless earphones.

AirPods shipping estimates have gradually improved since then, with orders now slated for delivery in under one week.

We haven't heard many rumors about second-generation AirPods, but Apple will be releasing an inductive charging case for the wireless earphones designed to work with its AirPower charging mat, which itself will launch in early 2018.

Article Link: KGI: AirPods Shipments Will Double Next Year Given Strong Demand
 

upnorth85

macrumors 6502a
Oct 2, 2011
566
163
MN, USA
I bought them and used them to watch Netflix on my iPad in bed. But they fall very easily. In the car, I have bluetooth, so my use for these are mainly for YouTube etc. Unfortunately for me they stay in my ear only in upright position like in standing or sitting in a chair.
 

Chupa Chupa

macrumors G5
Jul 16, 2002
14,830
7,369
Waiting for the rumored wireless case. Hoping they'll come in black too. Love the AirPods, hate the color. Tried the stickers but they look like stickers.

What happened to the negative hype of everyone that said they suck without trying them! And they will be a flop lol
Who is everyone? All the pro reviews I came across said they were basically the most Apple-like product in the Tim Cook era.
 

Piggie

macrumors G3
Feb 23, 2010
8,292
2,478
Why does everything from Apple need to be classed as a "Magical Experience"
This is getting really embarrassing for adults.
Fine if you are explaining things to a group of 6 - 8 year olds in school.

Please stop with the Magical.
 

Aussi3

Suspended
Jun 3, 2012
389
628
Facesticks on the App store
Waiting for the rumored wireless case. Hoping they'll come in black too. Love the AirPods, hate the color. Tried the stickers but they look like stickers.



Who is everyone? All the pro reviews I came across said they were basically the most Apple-like product in the Tim Cook era.
The macrumors community lol who else would be negative? :p
 

punchwalk

macrumors regular
May 16, 2010
203
48
Maryland, USA
The migration away from wired accessories is creating a vacuum in the market. Apple AirPods are currently one of only a few completely wireless earbuds with decent sound and build quality, so it makes sense that demand will continue to be strong. There are options with better sound quality, but AirPods' synergy with iOS devices and slightly lower price point should keep them ahead of the pack for a bit.
 

neuropsychguy

macrumors 65816
Sep 29, 2008
1,227
1,724
Why does everything from Apple need to be classed as a "Magical Experience"
This is getting really embarrassing for adults.
Fine if you are explaining things to a group of 6 - 8 year olds in school.

Please stop with the Magical.
It's one of the words used by Steve Jobs. Apple keeps using it as homage to him.
 

TroyBoy30

macrumors 68020
Jun 9, 2009
2,269
861
Atlanta GA
The migration away from wired accessories is creating a vacuum in the market. Apple AirPods are currently one of only a few completely wireless earbuds with decent sound and build quality, so it makes sense that demand will continue to be strong. There are options with better sound quality, but AirPods' synergy with iOS devices and slightly lower price point should keep them ahead of the pack for a bit.
youre welcome

https://www.jaybirdsport.com/en-us?gclid=Cj0KCQiAgZTRBRDmARIsAJvVWAtko0Z4Z9RqamsR7fRbMzpW_opJH2hyTWwcONTsZAa6tMu8uFCHFPQaAqf1EALw_wcB
 

lellis2k

macrumors 6502
Oct 2, 2007
288
56
Sheffield, UK
I'm waiting to see if the wireless charger comes bundled when it's released. Can't justify paying for a wired and wireless case as well.
 

MH01

Suspended
Feb 11, 2008
12,118
9,213
Why does everything from Apple need to be classed as a "Magical Experience"
This is getting really embarrassing for adults.
Fine if you are explaining things to a group of 6 - 8 year olds in school.

Please stop with the Magical.
Cause magic cost more - Tim is charging magical prices for apple products these days..... ;)
 

djcerla

macrumors 68000
Apr 23, 2015
1,659
6,676
Italy
Released one year ago and unmatched yet. Apple is so far ahead in so many areas it’s not even funny anymore*

*it’s actually funny
 
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Tymmz

macrumors 65816
Jan 6, 2005
1,424
149
I’m not surprised. They are much better sounding and versatile than I expected them to be.

The only downside is that they don’t fit underneath a motorcycle helmet. :(
 
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musika

macrumors 65816
Sep 2, 2010
1,279
438
New York
It's almost as if Apple found a way to replace the iPod revenue stream in the era of phones. AirPods alone cost more than the most popular iPod nano did in its day.
 
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