Looks like people aren’t buying AirPods as much as they used to
I’m sure Apple will be ok.
Apple’s AirPods and AirPods Pro are some of the most popular and well-known earbuds in the world, but it seems that demand is dropping a bit, as Apple has now reduced production plans because “demand is weakening.”
The report comes from Nikkei Asia, which notes that sources have told them that Apple is pumping the brakes on AirPods production. Originally, the production forecast saw 110 million units being made, but Apple is dropped that number to somewhere between 75 and 85 million.
“The most significant order reduction is for the second quarter toward the start of the third quarter,” said one of the people familiar with the matter. “The levels of inventory [in warehouses] and in-store stocks of AirPods are currently high … and demand is not as strong as expected.”
So, why the reduction? According to the sources, demand for the product is “weakening.” Now, this could mean that people are finding alternatives that they prefer, but there is also a good chance that some of this stagnation is due to people being happy with their current set of AirPods.
Nikkei Asia notes that Apple shipped around 72.8 million AirPods in 2020, but that was actually below its forecast, which called for 80-90 million units.
Interestingly enough, an analyst at Counterpoint Research notes that overall demand for true wireless earbuds is expected to see an increase of 33% this year, up to 310 million units. Does this mean that the global market is looking for cheaper alternatives to the premium price of the AirPods? Quite possibly.
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