(Bloomberg) – Apple Inc. will likely increase sales of its AirPods range by a third this year, but that will not prevent it from losing its dominant grip on the fast-growing wireless earbuds market.
The AirPods are the definitive category of wireless (TWS) earphones, with Apple accounting for nearly half of sales in 2019 and expected to grow to 82 million units this year, according to data from Counterpoint Research. However, more affordable alternatives from Chinese rivals have devastated Apple’s lead and the company Silicon Valley now finds itself with just a third of the market, at 35%, followed by Xiaomi Corp. with 10% and Samsung Electronics Co. at 6%, according to the researchers.
A growing contingent of specialized Chinese brands has emerged on the scene, with models such as the $ 90 Lypertek Tevi offering better fit and sound quality than AirPods at a lower price and the 1More True Wireless ANC offering the $ 250 AirPods Pros sound ignition performs at $ 180. Samsung’s newly released Galaxy Buds Live also has sound suppression along with a nice, bean-shaped design and costs $ 170. The South Korean company says it will release 300,000 pairs of Buds Live in the first few weeks of availability has shipped, though part of it is bundled with the Galaxy Note 20 flagship phone.
For Android smartphone users, many of the iPhone-related AirPods benefits are lost, leading to price and feature sets as the main drivers for purchase.
“The segment from low to mid-end, including Chinese brands and US manufacturers such as JLab, is part of the premium market,” said Counterpoint analyst Liz Lee. Competition between Samsung and Apple is likely to intensify in the latter half of the year, as positive reviews from Buds Live and increased investment from Samsung are expected to close the gap between the two, she added. “We believe Samsung can attract more users, especially Android phone users, as it delivers a wider selection of TWS devices from mids to full with at least two or three variations.”
As Samsung expands its headphone lineup, the project expects TWS sales this year to grow from $ 8 million to $ 17 million, while Apple’s AirPods family is expected to grow from $ 61 million to $ 82 million. Samsung, which took inspiration for the Buds Live design of the Hollywood movie “Her”, will expand its offering in line with evolving trends, lead wearables designer Bang Yongseok told Bloomberg News.
Established personal audio brands such as Sennheiser, Beyerdynamic and Audio-Technica are barely registered in the latest market data, with Counterpoint researchers identifying themselves as competing in the premium segment and having 0.3% share or less.
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