The big picture: Apple introduced AirPods eight years ago this month. Comparing a Bloomberg analysis with financial results from other companies reveals how staggeringly successful Apple's wireless earbuds have become. A testament to the scale of the world's most valuable company, the accessory takes in more revenue each year than several prominent tech companies.
Bloomberg estimates that AirPods sales have exceeded $18 billion yearly since 2021. To put that number in perspective, it surpasses Nintendo's reported total net sales for 2023 (roughly $10 billion).
Furthermore, PCMag recently calculated that AirPods generated more revenue than total annual earnings for companies like Spotify, eBay, Airbnb, DoorDash, and OpenAI. Although the numbers only represent revenue and don't reflect net profit, they indicate the rising importance of AirPods within the Cupertino giant's product lineup.
Bloomberg projects that AirPods will likely begin outselling iPads before the decade's end, becoming Apple's third most lucrative product behind iPhones and Macs. Price is the primary factor, as AirPods are far cheaper than iPads and Macs.
However, the high attachment rate of AirPods among iPhone owners also has a significant impact. Approximately 40 percent of iPhone users also used AirPods in 2022. Since there are about 1.5 billion active iPhones, that's 600 million Airpods users.
The proportion could increase to 52 percent by 2027 and 60 percent by 2030, signifying a 12 percent yearly sales increase for the earbuds, assuming iPhone sales increase by 5 percent in that timeframe. AirPods ownership skews toward teenagers and young adults, as around 62 percent of Gen-Z customers between ages 18 and 24 own them.
Investigating the frequency with which users lose and damage AirPods reveals another shocking statistic. According to CBS, customers spend over half a billion dollars each year replacing them. TechSpot staff can attest that the tiny buds are squirrelly, especially when the case hits a hard surface. The buds eject from the housing like bullets.
AirPods initially launched as a pair of slightly above-average wireless earbuds seamlessly connecting to users' iPhones. Later models gained significantly expanded functionality. Apple released its fourth-generation AirPods in September, which include voice isolation and noise cancellation features. Furthermore, the second-generation AirPods Pro recently received FDA certification for use as over-the-counter hearing aids. At $249, they are more expensive than most earbuds but cheaper than most traditional hearing aids.
Apple plans to release the third-generation AirPods Pro in 2025. Rumored features include a new design and improved noise management. Additional health-related functionality might come to subsequent models in 2026 and beyond.
Image credit: Airpods Pro, AirPods Trusted Reviews
AirPods sales totaled over $18 billion last year, more than all of Nintendo
