Apple cuts AirPods production due to weak demand and increased competition


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Rival firms have increased the number of affordable wireless headphones day by day, reducing sales of AirPods. Apple will reportedly reduce wireless headphone production by 25 to 30%.

Apple cuts AirPods production due to weak demand and increased competition

AirPods are considered a reference point for full wireless headphones, but the extremely intense competition seems to have left Apple with no choice but to reduce production. The company had planned to produce 110 million AirPods this year, but that figure would be reduced to 75 to 85 million, according to a Nikkei Asia report.

The most significant production cut will occur early in the third quarter, according to a source familiar with Apple’s production plans. There are also reports that AirPods stocks in stores are at a high level, but demand is not as strong as expected.

Apple cuts AirPods production due to weak demand and increased competition 1

Last year, AirPods shipments reached 72.8 million units, giving the company a 31% market share. But expectations were higher because Apple had ordered about 80-90 million AirPods. Demand for Apple’s wireless headphones was expected to increase by the end of 2020, but that didn’t happen.

Last year, AirPods delivered 72.8 million units, giving the company a 31% market share. But expectations were higher because Apple had ordered about 80-90 million AirPods. Demand for Apple’s wireless headphones was expected to increase by the end of 2020, but that didn’t happen.

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