Apple's wireless headphones, likely to be called “AirPods”, will take advantage of an in-house designed Bluetooth chip and be marketed as a high-end alternative to the Beats brand, which itself will be positioned in the mid-range market, according to a note by KGI Securities analyst Ming-Chi Kuo.
In his report to clients, a copy of which was obtained by MacRumors, Kuo writes that Apple's custom-designed chip improves Bluetooth reliability, sound quality and battery performance for longer battery life versus an off-the-shelf chip.