Apple’s AirPods sold throughout the year could be worth $6 billion. In 2020, this number may more than double.
The AirPods have easily become one of Apple’s most exciting market opportunities. The CEO of the company, Tim Cook, said that this market segment is currently is enjoying “explosive growth. According to Cook’s estimates, Apple’s wearables business currently earns about $18.9 billion.
Tony Sacconaghi, an analyst at Wall Street investment bank Bernstein, predicted that Apple’s revenue from AirPods in 2019 will reach $6 billion. The analyst believes that headset’s sales may more than double in 2020, reaching 85 million pairs, with sales of $15 billion. It will account for about 3.5% of Apple’s total revenue in the same year.
Also Read: Apple Sold 3 Million AirPods During Black Friday
The tech giant released its second-generation AirPods in March of this year, followed by a high-end AirPods Pro that costs $249 in October.
Apple said earlier this year that 900 million iPhones have been activated worldwide. Sacconaghi believes that about 250 million of the iPhones still in use are purchased on the second-hand market. This may limit the upward potential of AirPods.
Bernstein’s forecast is in stark contrast to the forecast of Loup Ventures analyst Gene Munste, who has tracked Apple’s movements for a long time. He recently estimated that based on the sales of 59.9 million pairs. With an average selling price of $142, the AirPods could generate $8.5 billion in revenue for Apple in mid-2019. Munster’s prediction model believes that Apple will sell 95.8 million wireless headsets at an average selling price of $159 in 2020. This will generate $15.2 billion in revenue.
In the research report, Bernstein reiterated the “market perform” rating on Apple’s stock and a target price of $ 250, which is lower than Apple’s current share price.