Apple's entry into the totally wireless earbud segment with the launch of AirPods has reportedly led to sales growth. According to NPD Group, Apple's AirPods account for 85 percent of the sales of totally wireless earbuds in the United States.
According to NPD Group’s Retail Tracking Service, more than 9,00,000 totally wireless headphones were sold in the US since the start of this year. It adds that AirPods grabbed 85 percent of totally wireless headphone dollar sales in the US. AirPods were announced alongside the launch of iPhone 7 series last year. However, the sales of completely wireless earbuds got delayed due to engineering issues.
Despite the delay, Apple has become the leader in the category with disruptive pricing and excitement around the use of W1 chipset to seamlessly connect with Bluetooth devices. "With a use case centering on frictionless access to Siri and other tasks initiated by voice, AirPods really act as an extension of the iPhone," Ben Arnold, Industry Analyst wrote in his research note.
While the totally wireless headphones category was pioneered by startups like Bragi and Doppler Lans, NPD Group sees the entry of Apple and Samsung as the major driver. It says some of the wireless headset manufacturers have carved out a niche for themselves by adding features like integrated music players and heart rate monitoring.
The report comes on the heels of an analysis from Gartner suggesting that Bluetooth headset sales will hit 150 million units this year. It further notes that the reception of totally wireless earbuds is forming among consumers and it will continue to evolve as more brands enter the market with competing product. However, Apple has an early mover advantage with its AirPods and it will continue to challenge even traditional brands like Sony and Bose.