How to Capitalize on the Airpods Business
The Signal: After killing the headphone jack, Apple graced the world with Airpods 3 years ago. Since then, the airpods business has quickly scaled to an estimated 60m sales in 2019, and over 100m since inception.
Assuming the original $159 price point, that would be $9.5B in revenue. Other analysts estimate this number to be closer to $12B due to the price point of Airpods Pro ($249). That means Airpods brought in more revenue than Twitter, Spotify, and Shopify, to name a few.
If the Airpods business was its own company, with $10B in annual revenue, they would be slightly larger than News Corp., a global media brand, according to this list of the world’s largest companies.
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Capitalizing on the Airpods market, making more money than Shopify
The signal: Since killing the headphone jack, Apple has graced the world with AirPods, which did an estimated 60m units in 2019. That means AirPods alone are bringing in approx ~$10b in revenue, more than Twitter, Shopify, or Spotify, to name a few popular tech giants. Opportunity lies in Apple opening up SiriOS or the wave of iPhone accessories (including cases, cleaning kits, hooks, and keychains) which have shown “hockey stick” growth alongside their hardware predecessor.
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