Apple currently leads the market of true wireless earbuds, but that journey has had more than a few bumps. From acquiring a share of 41 percent, the Cupertino tech giant’s grip has loosened, with a report stating that it now controls 29 percent of the market. However, we don’t think Apple will be sweating over this loss because that figure is higher than any of its competitors’.
Closest Competitor to Apple in the TWS Market Is Xiaomi, With Less Than Half the Share
According to a report from Counterpoint Research, by Q3, 2020, Apple’s 29 percent market share doesn’t reflect a drop in AirPods sales, but it shows increasing competition from the likes of Xiaomi. Apple’s and Xiaomi’s business models work very differently. Apple continues to sell largely expensive wireless earbuds, where Xiaomi’s offerings are way more affordable, being sold in the $20-$50 range, giving consumers more choice when purchasing.
Even with Xiaomi having a positive run in this market, it still controls less than half that market with a 13 percent share. One reason why Apple continues to dominate this segment is because of its tightly integrated iOS ecosystem. When consumers get themselves a pair of AirPods, that purchase is meant to simplify many things, such as the pairing process. With the purchase, users no longer have to swing into the ‘Settings’ of their iPhone or iPad. The connectivity between the two devices is swift and painless.
Of course, pricing could still be a concern for a lot of customers, especially when they are expected to cough up $549 for the AirPods Max, while the competition has the Sony WH-1000XM4 offered for $349. To counter this, Apple is rumored to launch a more affordable version of the AirPods Max for $349, but it’s not mentioned when they’re expected to release.
Later this year, we can expect Apple to unveil the AirPods 3 in March, and possibly the AirPods Pro 2 at an unconfirmed time. These releases will help the company maintain its momentum in the TWS market, and we’ll see if those numbers change soon, so stay tuned.
News Source: Counterpoint