Apple Inc (NASDAQ:AAPL). is planning a major revamp of its popular AirPods lineup, with redesigned versions of the entry-level AirPods and the AirPods Max slated for release in 2024, followed by an updated Pro model in 2025. The changes are aimed at enhancing earbud design, case aesthetics, and audio quality.
The AirPods, first launched in 2016 after Apple eliminated traditional headphone jacks from its devices, quickly overcame initial consumer skepticism to dominate the wireless earbuds market. According to Canalys, the AirPods accounted for approximately 32% of sales last year.
The current second- and third-generation AirPods will be retired next year, making way for two fourth-generation models with distinct features at similar price points. These new models will feature a design blend of third-generation AirPods and the Pro model, complete with short stems. The premium model will include noise cancellation and an updated charging case equipped with speakers for Find My alerts. Both new low-end models will offer improved fit but won't likely include replaceable tips like the AirPods Pro. The fourth-generation AirPods will adopt USB-C charging, continuing a shift initiated by the AirPods Pro.
In addition to these changes, Apple is also planning an update to the high-end over-ear AirPods Max. The new version will switch to a USB-C charging port and introduce new color options.
Looking further ahead to 2025, Apple is preparing a redesign and chip upgrade for the AirPods Pro. The company is also developing health features tied to hearing for this device.
Despite the success of the AirPods lineup, which generates approximately $40 billion annually as part of Apple's Wearables, Home, and Accessories segment, Apple faces stiff competition from rivals such as Samsung Electronics (KS:005930), Google (NASDAQ:GOOGL), Xiaomi (OTC:XIACF), Sony (NYSE:SONY), Bose, and Jabra. This rapidly evolving market underscores the need for continuous innovation.
However, the third-generation AirPods have underperformed due to their lack of substantial improvements over previous models. The current lineup includes the second-generation AirPods ($129), third-generation AirPods ($169), and the AirPods Pro ($249). The over-ear AirPods Max headphones are priced at $550.
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