Analyst: Air Pods revenue could double in 2020 with shipments hitting 85M units

Noted analyst Toni Sacconaghi of Bernstein is out with a new investor note in which he predicts that AirPods will continue to grow at an incredible rate in 2020. Sacconaghi estimates that Apple sold $6 billion worth of AirPods this year, a number that could more than double next.

Advertisements

As detailed by CNBC, Sacconaghi estimates that Apple could sell 85 million AirPods in 2020, which would generate around $15 billion revenue. If that same rate of growth continues in 2021, AirPods would become “Apple’s third-largest business,” Sacconaghi said.

Going beyond 2020, however, the analyst points out that AirPods growth could drop off relatively quickly as they reach market saturation:

“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,” Sacconaghi wrote.

Of course, the counterargument to this is that Apple will likely regularly release updated models of AirPods with new features and improvements. While it’s unlikely that growth will continue at its current rate, there are clearly ways Apple can incentivize customers to upgrade on a semi-regular basis.

Sacconaghi isn’t the only analyst to take a bullish stance on AirPods. Wedbush analyst Dan Ives recently estimated that Apple sold 3 million AirPods over the Black Friday and Cyber Monday weekend alone. Meanwhile, Asymco recently said that AirPods will soon hit $4 billion in quarterly revenue, surpassing the revenue generated by the iPod at its peak in 2007.

2 thoughts

  1. Hi there would you mind sharing which blog platform you’re using? I’m planning to start my own blog in the near future but I’m having a difficult time deciding between BlogEngine/Wordpress/B2evolution and Drupal. The reason I ask is because your design seems different then most blogs and I’m looking for something unique. P.S My apologies for getting off-topic but I had to ask!

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.