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Apple to cut production of AirPods by 25-30% due to lower demand and heightened competition

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AirPods are the benchmark for all-wireless headphones, but competition is so intense that Apple has no choice but to cut back on production. According to a Nikkei Asia report, the company will produce 75-85 million AirPods this year, up from the planned 110 million.

A source on Apple’s production plans notes that the most significant reduction in orders occurs in the second quarter, to the beginning of the third. According to him, “Stock levels [на складах] and stocks of AirPods in stores are currently high … and demand is not as strong as expected. “

Last year, AirPods shipments totaled 72.8 million units, giving the company a 31% share of the market. But expectations were higher: Apple ordered an assembly of about 80-90 million AirPods, and unsold leftovers ended up in warehouses. It was expected that by the end of 2020 the demand for Apple headphones will increase, but this has not happened – unlike the MacBook and iPad lines.

And while Apple still dominates the segment, competitors are advancing. For example, over the past year, Xiaomi has doubled its market share: from 6% in 2019 to 12% in 2020. The rest of the companies are also catching up, and this puts pressure on AirPods. In addition, Apple still hesitates to present the new AirPods Pro and AirPods 3 – rumors about them have been circulating since last year, renders and live photos have been published several times on the Web, but the company is still hesitating to release them. The premiere of the new AirPods was expected last week during the spring presentation of new products, but instead of them AirTags came out.

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