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06 March 2018, 01:51 | Hattie Nash
Apple to Take on Bose and Sony's Noise Cancelling Wireless Headphones This Year [Report]
Bloomberg sources corroborate an earlier KGI report that Apple is working on high-end, over-ear headphones meant to compete with Bose. Apple is said to be readying this new product launch for the end of the year, although, supposed development issues could be a factor in an otherwise tentative release date. This is normal Apple behavior, so it's not really surprising to hear they'll be expensive.
Since introducing the Airpods a year ago, which have since become a resounding success with customers, Bloombergreveals that Apple is looking to contribute to its budding audio repertoire. Although it hasn't released sales data, it seems that AirPods have sold well: They're included in the bucket of accessories Apple sells, which it labels as "Other Products" on its earnings reports, which has only increased in recent quarters.
Apple is planning to extend its audio-focused product lineup this year with the introduction of new over-the-head headphones, reveals a report by Bloomberg.
Keep in mind that Apple's HomePod retails for $349, but for the company itself, it costs $216 to make, resulting in smaller margins.
According to the latest statistic, companies like Beats, Bose, Sennheiser, Sony and Skullcandy are the leading players in a headphone market that will generate $20 billion in annual revenue by 2023, almost doubling this year's projected sales, according to Research and Markets.
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When the company acquired Beats Music and Beats Electronics in the 2014 deal, Apple executives said the successful Beats by Dre headphones business was one of the drivers.
Apple previously discarded the Beats Music streaming name when it launched Apple Music in 2015. One area the company is now looking to make a bigger splash in is the headphone market.
Pricing will be key for the new Apple headphones.
They'll be wireless headphones, much like the AirPods, and they'll integrate with Apple Music and Siri. Beats and Bose both charge $350 for their high-end wireless headphones, while Sennheiser prices range from $100 all the way to $500. AirPods have been tricky to assemble and use unusual design tricks, likely making them expensive to produce.
There's no word on when the headphones will arrive.
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