- Apple could sell 3 million AirPods units over the Black Friday and Cyber Monday weekend alone, according to analysts at Wedbush Securities.
- The analysts also predict that the company could sell 15 million AirPods over the next month and 65 million in 2019.
- It’s the latest report to indicate that Apple’s AirPods, particularly the new Pro models, are a hit for the company.
- A recent report from Nikkei Asian Review, for example, said Apple is doubling monthly production of the newly launched Pro Models.
- Visit Business Insider’s homepage for more stories.
In yet another sign that Apple’s AirPods are a hit, analysts at one financial services firm are predicting that the iPhone maker could sell 3 million AirPods units over the Black Friday and Cyber Monday weekend alone.
“Based on Apple store checks, inventory levels/shortages at a number of retailers, and reduced prices for AirPods 2, we believe Cupertino could potentially sell 3 million+ of these units over Black Friday/Cyber Monday,” Wedbush Securities analysts Daniel Ives and Strecker Backe wrote in a research note from November 29.
The analysts predict Apple could sell around 15 million AirPods units over the course of the next month, adding that the company’s cord-free headphones are on pace to be “a clear star of Black Friday and the holiday season.”
Wedbush also said it has seen a “surge of consumer demand” for the Pro model in particular, which comes with active noise cancellation, a new design with adjustable ear tips, and water resistance. Given this increased demand, Wedbush notes there may be shortages heading into the holiday season. However, it also says that it believes Apple will be capable of filling all of its orders as it ramps up production.
It’s the latest report to suggest that AirPods have been a success for the company, and it also provides more evidence that the pricier $250 AirPods Pro have been well-received since the October launch. On November 27, Japanese news outlet Nikkei Asian Review reported that Apple is doubling production of the AirPods Pro to 2 million units per month. That follows a report from Bloomberg, which recently said AirPods shipments are expected to double to 60 million in 2019.
The 60 million figure falls in line with Wedbush’s predictions, as the firm says it expects to see Apple sell more than 65 million AirPods units in 2019. Apple is on pace to sell between 85 million and 90 million AirPods units in 2020, the analysts also wrote.
The popularity of products like AirPods and the Apple Watch is increasingly important for Apple as it seeks to offset slowing iPhone sales by boosting other product categories. Revenue from the iPhone dropped by 9% year-over-year in the company’s fiscal fourth quarter, keeping with the trend of declining iPhone sales that has persisted over the last several quarters.
But Apple has been combating these declines with its burgeoning wearables, home, and accessories division as well as its services business. The former product category, which includes gadgets like AirPods, the Apple Watch, and Beats headphones, grew by more than 50% year-over-year to $6.5 billion in Apple’s fiscal fourth quarter.
Apple doesn’t reveal specific unit sales for its products, and it doesn’t break out AirPods revenue specifically. But Wedbush says AirPods are on a trajectory to represent around 4% of the company’s overall revenue. Third-party estimates from Counterpoint Research also suggest that Apple is leading the wireless earbuds industry with a 60% share of the market as of the fourth quarter of 2018.
Cook also said on Apple’s fourth quarter earnings that AirPods “just keep hitting new highs.”