The chief executive of Apple, Tim Cook, was present on yesterday’s conference call with Wall Street analysts and investors following the company’s September quarter earnings release, offering some rather curious thoughts as to the new AirPods Pro and their market potential.
Although sales of the new AirPods are not included in the earnings report, Cook believes that customers who already own AirPods are likely to own the new AirPods Pro, too.
Here’s what he said during the call (emphasis ours):
AirPods just keep hitting new highs. I anticipate that will carry over to this quarter, too.
We’re really proud to to add another product out there for people wanting noise canceling with the AirPod Pro beginning to sell today.
We’re anxious to see the customers for the new AirPod Pro.
But I would guess that one, particularly in the early going, will be people that have AirPods today and want to also have a pair for the times they need noise cancellation.
In other words, Cook sees AirPods Pro as a complement to AirPods, not a replacement.
Apple reported fourth fiscal 2019 quarter revenue of $64 billion, a two percent increase, and a total profit of $13.7 billion. Services revenue has reached a new all-time high of $12.5 billion. Cook added that iPhone 11 sales were off to a very good start. That trend should continue as the Cupertino company will let Apple Card owners buy a new iPhone with zero interest financing and 24 monthly payments later this year.
Despite some overlapping features, the new AirPods Pro target folks who want better-sounding audio: not only do they sound better than the regular AirPods, but also support active noise cancellation and features like Transparency mode that are unavailable on AirPods.
Some people thought that the new AirPods Pro would occupy the same spot as the current AirPods, which would need to be discontinued or kept on sale at a lower price point. Such strategy has served Apple pretty well in the smartphone space, but in terms of wireless headphones Apple has simply rounded up the AirPods family.
People in the market for an Apple-branded earphones now have three choices at their disposal.
Firstly, they can opt for the entry-level experience with the second-generation AirPods and the standard charging case, in exchange for $159. Secondly, folks who need a Qi wireless charging case instead will have to cough up $199 for their AirPods. And finally, we have the latest noise-cancelling AirPods with the wireless charging case retailing for $249.
So, we have three pricing brackets for AirPods — $159-$199-$249. I’d say Apple has segmented the market nicely by covering multiple price ranges for these types of wireless earphones. For those wondering, Apple’s Wearables, Home and Accessories division (includes AirPods, Beats and Apple Watch) pulled in $6.5 billion in revenue. Regarding AirPods specifically, Cook said that they continue to set “new highs” although iPhone and Mac sales did slide in the quarter.
What do you think, boys and girls, which AirPods offer the best value for money?
Let us know by leaving your comment down below.