Analysts at NDP Group have reported that Apple Inc. (NASDAQ:AAPL) has been dominating the wireless earphone market ever since the launch of AirPods in December 2016.
NDP Group’s retail tracking service discovered that there were more than 900,000 wireless earbuds sold since the beginning of 2017 and the AirPods account for 85 percent of them. The analysts believe that Apple has been so successful in the segment due to various factors including its strong brand, the excitement about the W1 chip in the AirPods and the disruptive pricing. The W1 chip facilitates transfer between different devices and boosts the Bluetooth connection.
“With a use case centering on frictionless access to Siri and other tasks initiated by voice, AirPods really act as an extension of the iPhone,” stated Ben Arnold, the executive director at NPD Group.
Arnold even went as far as to describe the AirPods as computing devices for the ear. The report from the NDP Group stated Apple’s early entry into the segment allowed it to dominate. It also added that the company will most likely continue to dominate and challenge rivals that are also in the wireless earphones segment. New players will have to introduce different features and better sound quality if they wish to stand out.
Apple received a lot of criticism when it phased out the earphone jack in the iPhone 7. The company introduced the wireless AirPods as one of the alternatives to earphones with a lightning plug. There were also mixed reactions about the AirPods because they could easily pop out of the ears during vigorous activities such as working out or jogging. Despite this, they seem to have been received well in the market.
The concept of wireless earphones also seemed to have attracted other manufacturers and as such, there have been numerous similar products in the market. Apple set the pace and is eager to continue encouraging more trends. The company plans to enhance Siri in iOS 11 and this is expected to help make AirPods even more attractive for the holiday season.
Apple stock closed the latest trading session on Monday at $164.05.
