Apple Cuts AirPods 3 Orders, May Revise Strategy for Launch of AirPods Pro 2 [Kuo]

Apple has cut orders for its new AirPods 3 by 30% or more due to failed product segmentation strategy, according to a new report from TF International Securities analyst Ming-Chi Kuo.

The analyst reports significantly less demand for AirPods 3 than AirPods 2, suggesting customers believe the additional cost for AirPods 3 features is not worth it.

AirPods 3 orders for 2-3Q22 have been cut by 30%+. Due to the failed product segmentation strategy, demand for AirPods 3 is significantly weaker than for AirPods 2. AirPods Pro may get discontinued after Apple launches AirPods Pro 2 in 2H22 to avoid repeating the same mistake.


Kuo later added that, "It could be a wake-up call for AirPods."
1. Consumers are not willing to spend an extra $50 for the new selling points of AirPods 3.
2. AirPods may only cost $249 at best without more innovative features.

Currently, both AirPods Pro and AirPods 2 are significantly discounted.

● AirPods Pro - $174 ($75 off)
● AirPods 2 - $99 ($60 off)

AirPods 3 are selling for $169.98, just $9.02 off list.


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