AirPods 2 are reportedly coming this spring with such perks as a much-requested black model, deeper bass, a specialized coating at the top of each earbud that could provide better grip, additional health sensors and other improvements, all in exchange for $199.
Apple's boss Tim Cook has admitted in yesterday's conference call following the latest quarterly earnings report that—aside from China—other factors such as higher prices, death of subsidies in many countries and customers holding on to their handset a bit longer than usual have all contributed to a decline in iPhone upgrades.
Jason Snell has transcribed Apple’s earnings call on Six Colors, here's what Cook said when an analyst pressed him on Apple's pricing strategy (emphasis mine):
Steve Milunovich, Wolfe Research: Some have the perception that you priced the new products, the new iPhones, too high. What have you learned about price elasticity and do you feel that perhaps you pushed the envelope a little bit too far and might have to bring that down in the future?
Tim Cook: Steve, it’s Tim. If you look at what we did this past year, we priced iPhone XS in the US the same as we’d priced iPhone X a year ago. iPhone XS Max, which was new, was a hundred dollars more than the XS, and then we priced the XR right in the middle of where the entry iPhone 8 and entry iPhone 8 Plus had been priced. So it’s actually a pretty small difference in the United States compared to last year.
He continued:
However, the foreign exchange issue that Luca spoke of in the call amplified that difference in international markets, in particular the emerging markets, which tended to move much more significantly versus the dollar.
And so what we have done in January in some locations and some products is essentially absorb part or all of the foreign currency move as compared to last year and therefore get close or perhaps right on the local price from a year ago.
So yes, I do think the price is a factor.
I remember Apple executives arguing in the past that iPhones weren't just for the rich people. But I digress, here's what Cook had to say about the death of the smartphone subsidy.
Secondly, in some markets, as I had talked about in my prepared remarks, the subsidy is probably the bigger of the issues in the developed markets.
I had mentioned Japan, but also even in this country, even though the subsidy has gone away for a period of time, if you’re a customer that your last purchase was a 6S or a 6 or in some cases even a 7, you may have paid 199 dollars for it. And now, in the unbundled world it’s obviously much more than that.
Cook says they have a number of actions to address the decline in iPhone upgrade rates, including the aggressive trade-in offers and and installment payments.
The Apple story is shifting from iPhone units to ecosystems and services.The CEO concluded:
So where it goes in the future, I don't know. But I am convinced that making a great product that is high quality, that is the best thing for the customer. We work for the user and so that's the way that we look at it.
In the press release announcing quarterly earnings, Cook praised other aspects of Apple's business that have experienced healthy growth.
While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter’s results demonstrate that the underlying strength of our business runs deep and wide.
Our active installed base of devices reached an all-time high of 1.4 billion in the first quarter, growing in each of our geographic segments. That’s a great testament to the satisfaction and loyalty of our customers, and it’s driving our Services business to new records thanks to our large and fast-growing ecosystem.
Apple no longer reports units sales for iPhone and other products, robbing investors of the most important metric as the company transitions its story from one heavily dependent on iPhone to a combined products + services business.
During the holiday quarter, the Cupertino company pulled in $84.3 billion in revenue, a decline of 5% from the year-ago quarter. Strategy Analytics estimates that 65.9 million iPhones were shipped during the quarter, or 11.4 million fewer handsets versus the year-ago quarter.
Taiwanese trade publication DigiTimes ran a report this morning which alleged that an AirPods revision with built-in health sensors could be on its way in the first half of this year.
Apple's AirPods wireless earbuds have been a smash hit for the Cupertino company as they have seemingly validated the market for advanced Bluetooth earphones. And now, rivals Google and Amazon are thought to be working on direct AirPod-alike competitor products.
Apple is on track to release its second-generation wireless earbuds with support for the Qi charging standard in the first half of next year, while an upgraded pair of AirPods rocking an all-new design and other perks is slated for release some time in 2020.
There's no shortage of inexpensive earphones, but Brinwavz's Zeta in-ear monitors (IEM) offer great sound and nice comfort for just twenty bucks a pop.
Apple's AirPods earphones were available virtually everywhere this morning but have gone out of stock across Europe after just a few short hours, according to local Apple online stores.
My AirPods have served me great thus far and I don't think I ever left home once without them in the past year or so of owning a pair of these. AirPods have proved especially valuable for making phone calls, using Siri and enjoying my music just about anywhere, hands-free. My only quibble is the slippery charging case prone to accidental drops. Because it's so tiny, the charging case can be lost quite easily—I misplaced mine several times in a glove compartment of my car and even forgot it on a local bar stool and a restaurant table recently.
Introducing AirSnapAnother problem with the smoothly rounded AirPods case: it cannot be attached to anything as there's no mechanism to do so. Twelve South's new AirSnap accessory, which was unveiled less than a month ago, seems to be the right solution to these issues.
Costing just $30, it makes everything you love about AirPods more functional and convenient.
Yes, you need a case to protect your AirPods case
Designed to both protect your AirPods charging case and keep it close at hand, this burnished leather accessory features a carabiner-style metal clip which prevents AirSnap from snapping off. It makes it effortless to attach your AirPods case to a bag, backpack, belt or purse.
The black carabiner swivels, making it simple to grab or put your AirPods away.
You'll find a pair of slits at the back which were designed to make it easier to open the top flap and insert your AirPods charging case into a pouch.
The slits make it easier to open the top flap
A snap closure at the top keeps the AirPods case secure. I especially liked a handy cutout at the bottom, which gives you convenient access to Lightning charging without taking the case off. You'll also find a cool little AirSnap logo at the back of the case.
A case for a caseIf you're like me and many other AirPods fans, chances are you've dropped your AirPods charging case a few times so far. Now, Apple's case has great build quality—mine didn't break after falling on concrete and the hardwood floor.
However, the drops left ugly nicks and scratches and I've noticed that the charging case tends to get dirty if you leave it floating around bags, purses and desks.
AirSnap features easy charging via a cutout for the Lighting port
Not only does AirSnap protect dirt from getting inside your AirPods but also keeps the charging case protected from dings, scratches and damage caused by drops.
Premium leatherMeasuring 2.9" x 2.1" x 0.98" and weighing in at just 0.8 ounces, or 23 grams, AirSnap comes in a trio of iPhone case-matching finishes: Cognac, Deep Teal and Black.
If you're not familiar with Twelve South, they make some of the finest leather products around, and AirSnap is no exception. The product is made of the same premium leather as their RelaxedLeather iPhone case that we reviewed last year. The full-grain leather looks premium and feels the same way when touched and held in one's hands.
AirSnap comes in iPhone case-matching colors
The stitching around the edges that keeps the case held together looks awesome when you see it in person. Like other leather-based accessories from Twelve South, AirSnap should age well and develop a beautiful patina over time, which may affect the color a bit.
In conclusionAirSnap is not one of those products that are looking for a solution, it's the right solution to the real problem—at the right price. The color is beautiful, the material provides firm texture and the incorporated metal clip is a great touch.
You can charge the AirPods case when they're inside AirSnap, which is great, and keeping it clipped to your belt or bag instead of buried in a pocket is a huge bonus.
AirSnap gives your AirPods case a tight fit and the metal clip keeps it securely attached to your backpack or belt loop. Some folks may feel more conformable attaching their AirSnap to the inside of a bag rather than to the back of their backpack, in order to prevent theft.
My only concerns deal with the snap closure and the clip itself.
Here's an AirSnap in Deep Teal hanging on my backpack
Because of tight fit, you will probably need to push the AirPods case inside your AirSnap a little bit harder the first couple of times to snap the case shut. I actually feared that pushing the button hard to get my AirSnap closed would break the delicate AirPods case, but it worked well.
Thankfully, the problem goes away over time as the leather material loosens. Plus, you won't be pulling out the AirPods case from your AirSnap nearly as much as you may think.
My other concern is the clip because getting the case hung on a backpack for everyone to see makes it easily getting stolen because unclasping the mechanism takes just a light press.
Pros and cons Pros Metal clip lets you attach the case to a bag or inside of a purse Full grain leather, high-quality stitching Swivel mechanism works great Cons Adds a little bit of extra bulk to your AirPods case Snap closure is a little too tight at first The metal clip is easy to unclaspAirSnap will most likely work with all Qi-compatible chargers, including Apple's upcoming AirPower, because the Qi standard also permits devices like iPhone to charge wirelessly through cases. Obviously, this is something we'll need to test for ourselves to be completely sure.
Pricing and availabilityAirSnap comes in Cognac, Deep Teal and Black, which are the same finishes in Apple's iPhone case lineup. The $29.99 accessory is available through the Twelve South webstore or Amazon.
What are your thoughts on this product?
Let us know by leaving a comment below.
How about a pair of AirPods with a retro skin featuring the timeless Macintosh design?
Premium accessory maker Twelve South yesterday unveiled a new AirFly adapter that permits AirPods owners to use their earphones with in-flight entertainment systems.
Those who have been waiting to pick up a pair of AirPods should consider waiting a tad longer as it looks like we could see an upgraded version sometime this year.
Revered Apple analyst Ming-Chi Kuo of KGI Securities has predicted that Apple may begin shipping its second-generation AirPods sometime in the second half of next year.