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.
Please download the iClarified app or follow iClarified on Twitter, Facebook, YouTube, and RSS for updates on AirPods Pro 2.
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.
Please download the iClarified app or follow iClarified on Twitter, Facebook, YouTube, and RSS for updates on AirPods Pro 2.