Mass production will begin in the third generation AirPods in the third quarter of 2021, according to an investor note from analyst Ming-Chi Kuo seen by MacRumors.
/article-new/2021/01/AirPods-Gen-3-Feature.jpg?resize=560%2C315&ssl=1)
If mass production only starts in the third quarter of 2021, it could mean that the AirPods 3 will only be shipped later in the year. Kuo said earlier in November that the AirPods3 would be launched in the first half of 2021, and other rumors suggested that the new AirPods could arrive as soon as this month.
There have been several leaks suggesting the redesigned third-generation ‘AirPods’, which usually indicate a launch is imminent, and Kang, a respected leak that often shares accurate information about Apple’s plans, recently said that the AirPods 3 ready to ship. ”
Kuo expects “AirPods” shipments to drop by about 25 percent year-on-year from the first quarter of 2021 to the third quarter of 2021 by about 25 percent year-on-year. If demand for the AirPods 3 is better than expected, mentsAirPods fourth shipments in the fourth quarter will remain 23 million units year over year. The total shipping of AirPods over 2021 is expected to drop to 78 million units, up from 90 million in 2020.
Kuo says the AirPods Max offered ‘limited assistance’ for transporting AirPods, with an annual shipment of about one million units.
It is unclear at this time whether ‘AirPods’ 2 will not be produced when the ‘AirPods’ 3 starts mass production. Kuo says Apple has a dilemma – if ‘AirPods 2’ stays put and sells at a lower price, it could affect AirPods 3 demand, but if there’s no cheap AirPods model, it negatively impacted Apple’s sales.
If AirPods 2 goes to the mass production of irAirPods 3 towards the end of its life, we estimate that AirPods 3, AirPods Pro, AirPods 2 and AirPods Max will account for approximately 40%, 28%, 31% and 1% of the total shipments. respectively in 2021. If irAirPods 2 will continue production after mass production of AirPods 3, we estimate AirPods 3, AirPods Pro, AirPodsod 2 and AirPods Max will account for approximately 32%, 28%, 39% and 1% respectively total .
Kuo attributes the decline in AirPods shipments to increased competition and a loss of market share. There are a number of true, inexpensive wireless earplug options on the market that Apple is struggling with.
The competitive advantage of Apple’s products lies in the integration of the ‘hardware, software and service’ ecosystem, not just hardware. The iPhone, for example, dropped its market share due to the rapid growth of the smartphone market, but it was able to maintain shipping growth due to the strong ecosystem of the App Store and developers. We believe that Siri is the core of or AirPods’ software and service ecosystem, but because the competitive advantage of Siri is not significant, the gap between the forefront of AirPods and its competitors is shrinking due to a lack of ecosystem protection as competitors their user experience and at the same time start with lower pricing strategies. We believe that HomePod and HomePod mini shipments were significantly lower than expected for the same reason.
IrAirPods have fast connectivity and fast conversion that give them an edge over competitors, but Kuo says these benefits are “gradually offset” by improved user experiences and lower prices offered by competitors.
In terms of high quality, while the low delay of AirPods Pro is about 50% compared to AirPods 1 and 20% compared to AirPods 2, and it provides active sound suppression, sales results show that consumers are not very willing to spend more than US. $ 100 to buy the points of sale of sAirPods Pro.
Kuo says that if Apple wants to improve AirPods shipments in the future, hardware innovation such as health management functionality is needed to distinguish the earbuds from similar products offered by competitors.