Source: Nikkei Asian Review

Apple AirPods’ runaway popularity is boosting wireless headset and part makers in China – and investors should be listening, analysts say.

The wireless earphones are Apple’s second fastest selling product of all time, only behind the iPhone. Now its more expensive AirPods Pro – which include such features as noise cancellation – is a hot seller, too. The stampede into so-called true wireless stereo (TWS) earbuds is in its early stage, analysts say, as consumers ditch their old wires for the cooler look and improved sound.

“True wireless stereo will become the next big thing in consumer electronics,” Zhongtai Securities analysts wrote in a new report. It will become the next product that could “create a growth miracle” after the smartphones, which have experienced what seems like a topping-out in output after years of rapid growth.

Apple CEO Tim Cook visited AirPods' Chinese supplier Luxshare Precision Industry in December 2017. Luxshare’s stock has shot up more than 200 per cent this year. Photo: Weibo

Apple CEO Tim Cook visited AirPods’ Chinese supplier Luxshare Precision Industry in December 2017. Luxshare’s stock has shot up more than 200 per cent this year. Photo: Weibo

Apple AirPods’ runaway popularity is boosting wireless headset and part makers in China – and investors should be listening, analysts say.

The wireless earphones are Apple’s second fastest selling product of all time, only behind the iPhone. Now its more expensive AirPods Pro – which include such features as noise cancellation – is a hot seller, too. The stampede into so-called true wireless stereo (TWS) earbuds is in its early stage, analysts say, as consumers ditch their old wires for the cooler look and improved sound.

“True wireless stereo will become the next big thing in consumer electronics,” Zhongtai Securities analysts wrote in a new report. It will become the next product that could “create a growth miracle” after the smartphones, which have experienced what seems like a topping-out in output after years of rapid growth.

Chinese companies like Luxshare Precision Industry, the main assembler of AirPods – are benefiting. It’s up more than 200 per cent this year

Investors believe they are witnessing the emergence of a massive market for AirPods – which sells for as much as US$249 for the high-end version – and other brands of earbuds, with consumer demand worth billions of dollars barely tapped yet.

“There are about 900 million to 1 billion iPhone users worldwide, so the saturation ratio of AirPods among the existing users is not even 10 per cent. That represents huge room for growth,” analysts Liu Xiang and Liu Shang at Zhongtai Securities wrote in their report.

“Apple is leading the technology advancement in wireless earphones,” said Alex Ng, analyst at CMB International Securities who specialises in technology sector. “It’s a whole new market.”

View source version: https://www.scmp.com/business/markets/article/3037078/apple-airpods-craze-spreads-china-becoming-music-ears-wireless

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