When Apple seriously entered the headphone market in 2016, it was ridiculed and criticized for its AirPods. The company is now the largest manufacturer of true wireless headphones – with a market share of more than a quarter of all earbuds sold worldwide.
For Apple, AirPods are a billion-dollar business and, alongside iPhone sales, an important pillar of the smartphone market. The headphones only offer the full range of functions in connection with iPhones; such as for Siri, seamless switching between devices and updates. Although Apple currently offers four AirPods models in different price ranges, the entry costs are comparatively high – but that could change soon.
AirPods prices unchanged for years
With the launch of the AirPods Max in 2020, the company increased its own line of headphones to four models:
- AirPods (2nd generation)
- AirPods (3rd generation)
- AirPods Pro (2nd Gen)
- AirPods Max
With the launch of the 3rd generation AirPods in 2021, Apple has continued to offer the 2nd generation – for the same price. At 159 euros, they should represent a cheaper alternative to the 3rd generation, which is significantly more expensive at 209 euros. Although the starting price is lower, it lacks features such as 3D audio, wireless charging and the sound is also significantly worse. The competition also often offers active noise cancellation (ANC) and better sound in this price range.
Also read: Apple wants to provide AirPods with new functions via a major update
Entry-level AirPods price could drop
According to Bloomberg industry analyst Mark Gurman, there are a number of changes coming to the AirPods lineup. Among other things, Apple is said to be working on new charging cases that use USB-C instead of Lightning to match the upcoming iPhone 15. In addition, new models should get a temperature sensor in order to be able to detect diseases and track the female cycle. The functionality as a hearing aid is also to be expanded. Apple has already invested heavily in this area with conversation amplification and live monitoring, but official approval is still missing.
Meanwhile, since it may be a while before these new features are actually released, Apple could lower the entry cost of AirPods to stay competitive. According to Gurman, the price of the AirPods (2nd generation) from now $129 to $99 is conceivable. That would correspond to a reduction of about 24 percent. Applied to the prices in Germany, where the 2nd generation currently costs 159 euros, this would correspond to a new price of 120 euros. The company could thus undercut competing products such as the Nothing Ear (2) and the OnePlus Buds Pro. At least until a successor to the 3rd generation AirPods appears.
TECHBOOK means
“According to the current scheme, Apple will probably not introduce a successor to the 3rd generation AirPods until 2024. Until then, the 2nd generation will continue to be the entry-level model, which has remained unchanged at 159 euros for four years now. The technology is now a bit outdated and the competition offers significantly more for less money. It would therefore be a good opportunity for Apple to lower the price now and sell as many units of the older model as possible before the new one appears. In my opinion, that would be a win-win situation: iPhone users, for whom the AirPods were previously too expensive, can now get the hardware for less. Apple, on the other hand, can boost sales again shortly before the end of the product cycle and clear its stock.” Adrian Mühlroth, editor