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Apple AirPods vs tech companies

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Apple AirPods Revenue Dwarfs That of Tech Giants

Sakwa Kombo by Sakwa Kombo
August 30, 2023
in News
Reading Time: 2 mins read
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Apple AirPods vs tech companies

Apple AirPods are proving to be a lucrative business for the American tech giant. Based on data from Securities and Exchange Commission (SEC) for the year 2022, Apple AirPods revenue surpassed a number of giant tech companies.

Separate from other Apple products and services, AirPods reportedly brought in $14.5 billion in revenue. In comparison, this was more revenue than the popular streaming service Spotify.

Additionally, Apple AirPods brought in more revenue than Airbnb, ecommerce platform Shopify, eBay, gig economy platform Doordash among other technology giants.

Furthermore, the 2022 revenue from AirPods shows the popularity of the product is growing. In 2021, apple made $12.1 billion of revenue from AirPods sales.

As of 2021, it was estimated over 150 million units of AirPods had been sold. Growth in revenue from sales, indicates this number has since grown.

However, Apple’s overall revenue from wearables has declined. For instance, in Q1 2022 the company earned $14.7 billion from wearables sales. For contrast, in Q1 2023 Apple sold $13.5 billion worth of wearables indicating falling sales.

The Apple Wearables category includes AirPods, headphones, iPod Apple Watch, Apple TV, HomePod, iPods, and Apple accessories. Of the total wearables’ revenue, it is estimated AirPods account for 75%.

from Sec.gov

Apple AirPods Long term Strategy

Apple has always banked on its good reputation as a premier brand and staunch customer loyalty. The company is keen in executing a long-range strategy over years to grow new business.

AirPods were first announced on September 7, 2016, and the first generation AirPods were released on December 13, 2016. Sceptics were quick to decry the abolition of Aux port and discontinuation of USB headphones.

Since 2017, data indicates AirPods revenue has been growing on average at 64.55% per year. The products are manufactured in China, while some, are made in Vietnam.

Currently, AirPods revenue is smaller than that of iPhone, Mac, or iPad. However, growth in AirPods revenue is relatively bigger than any of the other categories.

Tags: Apple
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Sakwa Kombo

Sakwa Kombo

My Bio is in my written articles.

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