Apple Launches $550 Over-ear Headphones in a Highly Competitive Market

Apple has launched its first headband headphones, jumping into a market where it will compete against Bose and Sony rivals. The move also reflects its drive in the accessories segment to supplement revenue generated by its flagship iPhone.

The $550 headphones include wireless connectivity and noise cancellation, like many others on the market. According to Apple, they go on sale Tuesday and will begin hitting stores on Dec. 15. The company highlights the superior audio quality and 20-hour battery life in its ad.

The headphones work with Siri, Apple’s voice-activated digital assistant, and have physical side controls for music playback. They are available in several colours: space grey, silver, blue, green and pink.

Earlier this year, Bloomberg reported on the development of new headphones in 2018 and their specifications. Apple stopped selling competing headphones and speakers in September, paving consumers’ way to focus on the new offering. The company had planned to announce the headphones’ introduction earlier but was delayed after the headband was found to be too tight during testing.

The company follows an audio product strategy as people keep their iPhones longer

Apple released its AirPods headphones in 2016 when it removed the headphone jack from the iPhone. The product drove the company’s wearable device sales, giving Apple a key growth engine beyond the iPhone. 

The AirPods were updated with a new version in 2019. Apple released the AirPods Pro with noise cancellation in October 2019. Also, the company plans new AirPods for next year.

In its last fiscal year, Apple generated $31 billion in accessory sales, such as AirPods, Beats headphones and the Apple Watch. The figure exceeds the sales of the Mac and iPad. The accessories business is critical for the company to generate more revenue per user as people keep their iPhones longer.

Apple headphones and AirPods are part of a broader audio product strategy. It also includes the HomePod speaker and Beats headphones. Apple acquired Beats Electronics in 2014 for $3 billion and has been updating its hardware range despite competing with Apple-branded accessories. 

Apple prepares next Mac chips to outperform high-end PCs

Besides, Apple is planning to launch a series of new Mac processors in early 2021 to outperform Intel’s faster performance.

Chip engineers at the Cupertino, California-based tech giant are working on various successors to the custom M1 chip, the first main processor in Apple’s Macs that debuted in November. If they meet expectations, they will significantly outperform the latest computers running Intel chips.