Apple to cut AirPods production by up to 30% in 2021, says report
What you need to know
- Apple is reportedly cutting production of AirPods by up to 30% in 2021.
- That's because sales are reportedly losing steam as competition intensifies.
- A new report says Apple will make 75-85 million units this year, compared to a previous forecast of 110 million.
A new report says Apple plans to cut production of its AirPods by between 25% and 30% as sales lose steam.
From Nikkei Asia:
The report says the move indicates "demand is weakening for AirPods" following 5 years of double-digit growth.
The report says the "most significant order reduction" is for the second quarter and towards the start of the third quarter, with levels of inventory as well as in-store stocks currently high. Furthermore, a source said, "demand is not as strong as expected". The report notes some retailers globally offering discounts:
The report does however offer some hope, as rumored new AirPods could drive sales:
The report says Apple has "played a major role in cultivating the market for true wireless earphones" but is now chafing under the success of some of its competitors, with Apple's market share falling from 60% in 2018 to just 31% last year, according to Counterpoint Research.
Apple's new AirPods, expected later this year as mentioned could debut a design reminiscent of Apple's AirPods Pro, currently the best true wireless earbuds on the market, without active noise-canceling technology.
The news could raise the eyebrows of investors ahead of Apple's Q2 2021 earnings call, scheduled to take place later on Wednesday.
Amazon is taking over $50 off the regular price of AirPods Pro and you can have them delivered quickly with Amazon Prime. This deal is also available at Walmart (opens in new tab).
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Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design.
Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9