- The Apple AirPods are reportedly expected to hit $6 billion in revenue this year. And that could double next year.
A couple of months ago, Apple CEO Tim Cook said that its Wearables business “explosive growth and generated more annual revenue than two-thirds of the companies in the Fortune 500.” And outside of the iPhone, the company’s revenue grew by $17 billion to nearly $118 billion. Now Apple’s wearables revenue is now valued at about $18.9 billion and it is estimated that the AirPods alone may have sold $6 billion this year.
The $6 billion figure was revealed in a research note to investors by Bernstein analyst Toni Sacconaghi via Fool.com. And Sacconaghi believes that AirPods could more than double to 85 million in 2020. And it could bring in $15 billion in sales next year.
Apple released the second-generation AirPods in March and then a higher-priced premium version of the AirPods called the AirPods Pro in October.
Sacconaghi acknowledged that the sales could peak on the AirPods soon.
“Growth tends to slow down a lot once you reach the top of the curve, and AirPods are simply growing so fast today that they risk reaching the top in record time,” Sacconaghi added. “Given AirPods’ extraordinarily steep adoption curve and rapid saturation of the iPhone installed base, we see a dramatic deceleration in AirPods revenue growth by 2021 or 22, to single-digit growth rates or possibly lower.”
Gene Munster of Loup Ventures is estimated that the AirPods could generate $8.5 billion in revenue this year based on 59.9 million units and an average selling price of $142. And Munster believes Apple could sell 95.8 million AirPods in 2020 at an average selling price of $159 thus hitting $15.2 billion in revenue.