Mass production of the third-generation AirPods will begin in the third quarter of 2021, according to an investor note from analyst Ming-Chi Kuo seen by MacRumors.
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If mass production doesn’t start until the third quarter of 2021, it would mean the PAirPods 3 wouldn’t ship until later in the year. Kuo said earlier in November that AirPods 3 would be launched in the first half of 2021, and other rumors suggest the new AirPods could be coming this month.
There have been several leaks regarding the redesigned third-generation thirdAirPods, normally suggesting a launch is imminent, and Kang, a respected leaker who often shares accurate information about Apple’s plans, recently said the AirPods 3 ‘ be ready for shipment ‘. . ”
Kuo expects AirPods shipments to decline approximately 25 percent year over year from the first quarter of 2021 to the third quarter of 2021 to 55 million units. Should demand for the AirPods 3 be better than expected, the AirPods shipments in the fourth quarter will remain stable year over year at 23 million units. Total shipments of AirPods in 2021 are expected to decline to 78 million units from 90 million in 2020.
Kuo says the AirPods Max have provided “limited assistance” to “AirPods” shipments, shipping approximately one million units annually.
It is currently unclear whether AirPods 2 will no longer be produced when the AirPods 3 go into mass production. Kuo says Apple has a dilemma: if AirPods 2 sticks and is sold at a lower price, it could affect the demand of AirPods 3, but if there is no low-priced AirPods model, it could have a negative effect on the sale of Apple.
If AirPods 2 reaches end of life after mass production of AirPods 3, we estimate AirPods 3, AirPods Pro, AirPods 2 and AirPods Max will account for approximately 40%, 28%, 31% and 1% of total shipments respectively in 2021 If AirPods 2 continues production after mass production of AirPods 3, we estimate AirPods 3, AirPods Pro, AirPods 2 and AirPods Max will account for about 32%, 28%, 39% and 1% of total shipments in 2021, respectively.
Kuo attributes the decline in AirPods shipments to increased competition and a loss of market share. There are a number of cheaper, truly wireless earbuds on the market that Apple has to contend with.
The competitive advantage of Apple’s products lies in providing integration of the “hardware, software, and service” ecosystem, not just hardware. For example, the iPhone has seen its market share decline due to the rapid growth of the smartphone market, but it has sustained the growth in shipments thanks to the strong ecosystem of the App Store and developers. We believe Siri is at the heart of softwareAirPods ‘software and service ecosystem, but since Siri’s competitive advantage is insignificant, the gap between AirPods en’ leading edge and that of its competitors is narrowing due to lack of ecosystem protection, as competitors gradually improve their lead. user experience while launching cheaper strategies. We believe that HomePod and HomePod mini shipments were significantly lower than expected for the same reason.
“AirPods” have fast couplers and fast switching features that give them an edge over competitors, but Kuo says these benefits are “gradually being offset” by improved user experiences and lower prices offered by competitors.
In terms of high quality, while AirPods Pro’s low latency is about 50% improvement over PAirPods 1 and 20% improvement vs. AirPods 2, and it offers active noise cancellation, sales results show consumers are not very willing to spend more then give the US. $ 100 to buy the AirPods Pro selling points.
Kuo says that if Apple is to improve AirPods shipments in the future, hardware innovation such as health management functionality is needed to differentiate the earbuds from similar products offered by competitors.