Pure white, tooth-brush looking Airpods initially were not welcome
It turns out Airpods (and Airpod Pro) account for $12 billions in revenues for Apple 2019. That could definitely contribute to an increase of Apple (AAPL) stock over last six months.
Data from kevinrooke shows that Airpods has a higher earning than top tech companies such as Adobe ($11.17), AMD, Spotify and Twitter. And considering Airpods margins of ~59%, Apple could make a lot of profits than others combined.
Below is the figure representing Airpods revenue agaisnt other top tech companies.
Apple released the first Airpods in 2016, which is powered by Apple W1 Bluetooth processor. The W1 was specially developed for Airpods and Beats headphones. Airpods retailed for $159 originally, and Apple shipped 14 million units in 2017, climping 35 million units in 2018, bringing in revenues that exceed $5 billion.
In March 2019, the second gen of Airpods which supports wireless charging was released. But with H1 Bluetooth processor, the Airpods 2 has a couple of advanced features.
- Bluetooth connection is more solid
- Real quick connection for phone calls or switching back and forth between devices
- Lower latency while watching video or playing games.
The latest Airpods Pro with ANC has better sound and noise-isolation launch in October 2020 remarks Airpods as Apple’s most successful product during Tim Cook Era.
How much Airpods business worth?
Airpods business could be worth $60 billion (just consider 5 time Airpods revenue)
Airpods Pro are sold out ahead of holidays in US, because of such high demand and prospect buyers have to wait several weeks to get Airpods. Apple asked their suppliers, Luxshare Precision (located in China) to double production of the AirPods Pro, and Goertek to ramp up the production of cheaper models, the Airpods in Vietnam.
References top tech companies’ revenues
- https://www.macrotrends.net/stocks/charts/TSLA/tesla/revenue
- https://www.statista.com/statistics/273883/netflixs-quarterly-revenue/
- https://investor.uber.com/news-events/news/press-release-details/2019/Uber-Announces-Results-for-Third-Quarter-2019/
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