Apple AirPods true-wireless earbuds have been well-received in the market and are currently the best-selling TWS Earbuds worldwide. The newly launched AirPods Pro are so popular that the company had to increase its production.
The US-based company reportedly turned towards Luxshare-ICT to double the production of the AirPods Pro earphones at its Chinese facility. The production units will see an increase to 2 million units a month. Furthermore, the company has also asked another Chinese company GoerTek to boost production at their Vietnam-based factories for the base AirPods variant.
Now, it is being reported that both Goertek and Luxshare are seeking hundreds of millions of dollars to grow AirPods and AirPods Pro production. This is in part to diversify Apple’s supply chain as well as to shift manufacturing outside of China, in case the trade deal collapses and tariffs are reinstated.
EDITOR’S PICK: Huawei Freebuds 3 Review: A solid and cheaper alternative to the Apple AirPods Pro
In July, Goertek began manufacturing of Apple’s AirPods began on a trial basis and Apple had asked components suppliers to support Goertek’s efforts, even though initial production runs were small. Now, it is reported that assembly of the AirPods would increase following the trial run. The report notes that components sourced in China are easy to ship to Vietnam, and Vietnam’s labor costs are about one-third of China’s.
Analysts believe that the AirPods are headed towards mass-market domination, which could soon result in quarterly revenue over $4 billion during the holiday season. Industry analyst Asymco believes that Apple will witness 50% YoY growth for wearables.
According to Bernstein analyst Toni Sacconaghi, Apple sold $6 billion worth of AirPods this year and is set to rake in $15 billion in revenue from the true wireless earbuds in 2020. It is said that Apple could sell as many as 85 million AirPods next year, making AirPods the company’s third-largest business after iPhones and iPads by 2021.
UP NEXT: Realme Buds Air First Look: The Cheaper AirPods Have Landed
(Via)
