AirPods step into ‘$4 billion club’ to recreate iPod glory

Research firm Asymco today published a study that mentions the approximate size of Apple’s wearables, smart homes and other categories of revenue. According to their data, AirPods wireless headphones’ single-quarter revenue has reached $4 billion, comparable to the peak of the iPod player in 2007. “$4 billion in revenue per quarter” is a threshold because it represents the pinnacle of Apple’s once-brilliant iPod.

AirPods step into '$4 billion club' to recreate iPod glory

Watches and wireless headsets replace the status of the iPod (via 9to5Mac)

After it, research institutions are more willing to compare accessories such as watch headsets with iPods. Last year, Apple’s smartwatch, the Apple Watch, generated more than $4 billion in revenue in the fourth quarter of 2018, and now it looks like it may be AirPods’ turn.

Since Apple didn’t release specific numbers for the attachments in its earnings report, it’s hard to accurately gauge the revenue from wearables and smart home products. However, by estimating the watch revenue and subtracting it from the total revenue of the attachment category, you can derive an estimate of AirPods. With estimates of $1.7 billion in non-AirPods (i.e. Apple TV set-top boxes, HomePod speakers, Beats headsets, iPods and others), AirPods will be a new addition to the $4 billion club this quarter.

Asymco reckons Apple’s wearables will grow at an annual rate of more than 50 percent. Looking ahead to the next quarter, they expect wearables to grow at an annual rate of 51%, while watches are growing at an annual rate of 24%. That means Apple Watch revenue could be about $5.2 billion, while non-watch accessories will generate about $5.7 billion.

Last month, Bloomberg reported that Apple had doubled production of its AirPods Pro. Apple’s push to wirelessize headphones and optimize its AirPods product line has helped boost revenue in recent years. AirPods’ $4 billion in revenue accounts for only about 2 percent of Apple’s total revenue. But there is a lot of potential for this category to continue to grow.

Add a Comment

Your email address will not be published. Required fields are marked *