Apple Inc is likely to boost sales of its AirPods range by one-third this year, but that would not stop it from losing its dominant grip on the fast-growing wireless earbuds market.
AirPods have come to define the true wireless (TWS) earphones category, with Apple accounting for nearly half of all sales last year and expected to grow to 82 million units this year, according to Counterpoint Research data.
However, cheaper alternatives from Chinese rivals have eroded Apple’s lead and the Silicon Valley company now finds itself with 35 percent of the market followed by Xiaomi Corp (小米) with 10 percent and Samsung Electronics Co on 6 percent, the data showed.
A growing contingent of specialized Chinese brands has emerged on the scene, with models such as the US$90 Lypertek Tevi offering better fit and sound quality than AirPods at a lower price and the 1More True Wireless ANC outperforming the US$250 AirPods Pro’s noise canceling at US$180.
Samsung’s newly released Galaxy Buds Live also features noise canceling along with a pretty, bean-shaped design and cost US$170.
The South Korean company said it has shipped 300,000 pairs of the Buds Live in their first few weeks of availability, although part of those have been bundled with the Galaxy Note 20 flagship phone.
For Android smartphone users, many of the iPhone-related AirPods advantages are lost, leading to price and feature sets being the key purchase drivers.
“The low-to-mid end segment, including Chinese brands and US makers such as JLab, is taking away share from the premium market,” Counterpoint analyst Liz Lee said.
Competition between Samsung and Apple is likely to intensify in the latter half of the year, as positive reviews of the Buds Live and increased investment from Samsung are expected to close the gap between the two, Lee said.
“We believe that Samsung can attract more users, especially Android phone users, if it provides a wider selection of TWS devices from mid to high-end with at least two or three variations,” she said.
As Samsung expanded its earphones lineup, it is projected to more than double its TWS sales this year, growing from 8 million to 17 million, while Apple’s AirPods family is forecast to go from 61 million to 82 million.
Samsung, which took inspiration for the Buds Live design from the Hollywood movie Her, would keep expanding its range in line with evolving trends, lead wearables designer Bang Yongseok told Bloomberg News.
Established personal audio brands like Sennheiser, Beyerdynamic and Audio-Technica barely registered in the latest market data, with Counterpoint researchers identifying them as competing in the premium segment and holding a 0.3 percent share or less.
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