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Apple Inc (NASDAQ: AAPL) will soon face increased competition in the headphone segment as Qualcomm, Inc. (NASDAQ: QCOM) announced a new range of chips designed to connect wireless headphones with devices that run on Alphabet Inc’s (NASDAQ: GOOGL) (NASDAQ: GOOG) Android operating system.
What happened: Qualcomm has released chips that will allow Android devices to be easily paired with headphones in the same way that iOS devices can be paired with headphones, due to the integration of special Apple chips into the hardware, Reuters reported.
Audio-Technica and Xiaomi Corporation (OTC: XIACY) (OTC: XIACF) will be the initial customers of the chips. The devices are expected to arrive in the summer.
Because it is important: The Android ecosystem is not as closed or vertically integrated as iOS, according to Rahul Patel, Qualcomm’s senior vice president, Reuters reported.
“We want to allow (audio companies) to run smoothly with Android products,” said Patel.
In December, the company run by Tim Cook released a $ 549 headset dubbed “AirPods Max,” sparking outrage on social media.
Wireless headphones have become one of Apple’s fastest growing segments.
The Cupertino, California-based company is also said to be planning a virtual reality headset that could arrive in 2022, which will pit Apple against each other. Facebook Inc (NASDAQ: FB) and Sony Corporation (NYSE: SNE).
Price action: Shares of Apple traded 1.2% lower at $ 118.69 in after-hours trading on Thursday and closed the regular session 1.58% in the red at $ 120.13. On the same day, Qualcomm shares closed the regular session down 2.93% to $ 127.80 and fell 0.63% in long-term trading in the hours after.
Read next: Apple To Lose Top US Podcast Audience Spot To Spotify This Year: eMarketer
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