Stats Show Apple’s AirPods Business Is Big Enough to Become 32nd Largest Company in the U.S., If It Was a Separate Entity

Nov 12
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When Apple reported its financials for the last quarter, the figures revealed that the wearables business made more revenue than two-thirds of the firms listed in Fortune 500. The success can partially be attributed to AirPods which have seen explosive growth in recent times. Now, a fresh report sheds more light on how successful the Cupertino giant’s wireless earphones are.

Project AirPods Shipments for 2020 Are Expected to Reach a Whopping 100+ Million

When the AirPods were first launched in 2016 alongside the iPhone 7 and iPhone 7 Plus, they were mocked for not having any wires, along with an unorthodox design. Fast forwards to now, they are more successful than any wireless earphones in the market. Of course, part of that success comes from the Apple branding, but the AirPods are also remarkable pieces of hardware, thanks to the custom chipset, impressive battery life, and stable Bluetooth connection, amongst other things.

Apple Predicted To Earn $10 Billion From Wearables This Quarter As AirPods, Apple Watch 3 Prove Popular

Back in 2017, Apple reportedly sold 16 million units of AirPods and this year shipments are expected to hit the 60 million mark. For 2020, stats from Twitter user Midas Kwant predicts that next year, the company is expected to sell over 100 million units.

According to a detailed series of calculations, sales of a 100 million AirPods will rake in revenue of $20 billion, assuming an average selling price of $200. Then, with a supposed net profit margin of 35 percent and using a conservative valuation method, the net worth of the AirPods unit alone is estimated to be $175 billion. So, if AirPods were a standalone company, it will have a market valuation of more than $175 billion, which would make it the 32nd largest firm in the U.S.

For a product that was launched around four years back, these are spectacular results. Since true wireless stereo market is just starting out, there is still a lot of room for growth. Apparently, not even 10 percent of iPhone users have AirPods and with the wireless earphones apparently being the Cupertino giant’s second fastest-selling product of all time, we can expect demand to increase exponentially.

Of course, other big players are also eyeing the lucrative industry, but currently, Apple has a lion’s share of the market, and the close integration of its AirPods with its robust ecosystem only makes things better. Thus, for now, it doesn’t seem Apple’s position is threatened in any way.

Source: Twitter (Midas Kwant)

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