AirPods demand is reportedly falling within the face of elevated competitors from different manufacturers. A provide-chain report says that Apple is ordering suppliers to chop production by someplace within the 25-30% vary.
It says Apple is at present sitting on extra stock in warehouses …
Nikkei cites a number of unnamed sources.
Sources briefed on the matter informed Nikkei Asia [that] Apple now expects to make between 75 million and 85 million models for 2021, in contrast with a earlier production forecast of 110 million models.
The downward revision signifies that demand is weakening for AirPods, whose shipments have been rising by double-digit percentages since their introduction in 2016.
“The most significant order reduction is for the second quarter toward the start of the third quarter,” stated one of many individuals aware of the matter. “The levels of inventory [in warehouses] and in-store stocks of AirPods are currently high … and demand is not as strong as expected.”
That’s leading to reductions being supplied to maneuver inventory, with a number one Chinese e-commerce platform at present promoting AirPods Pro at 25% under the official retail worth.
If correct, it’s unlikely that Apple can be too involved at this stage. The firm continues to be by far the dominant participant within the true wi-fi in-ear headphone market, although its share has been falling for a while. Back in January, Counterpoint estimated that Apple’s market share final yr fell from 41% to 29% in the middle of 9 months.
In specific, there was a big enhance within the variety of manufacturers providing much more affordable wi-fi in-ear headphones. Half of the highest 10 manufacturers available in the market supply sub-$50 merchandise. Amazon also recently launched a second-technology mannequin of Echo Buds, with a wi-fi charging case and the choice of a white colour.
All the identical, Apple’s 29% share is greater than twice that of its nearest competitor, Xiaomi, and third-positioned Samsung has simply 5% of the market.
Apple will possible see a lift in demand when it launches AirPods three later this yr, although two current reviews say that this isn’t set to happen until Q3. AirPods three are anticipated to look similar to the current-gen AirPods Pro mannequin, however will lack noise cancellation. Additionally, we’re anticipating a brand new, more compact design for AirPods Pro.
Photo by Xiong Yan on Unsplash
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