Apple AirPods Sales Struggle in China Similar to iPhones; New Data Shows ‘AI Headset’ Market Share Under $70 at 60%

Almost ten years have passed since Apple launched its first-generation AirPods, which not only transformed the market for wireless earbuds but also sparked a wave of affordable alternatives. These budget-friendly options enabled various phone manufacturers to tap into a newly emerging market, even as Apple maintained a dominant position in wireless audio sales. Nevertheless, with consumers often constrained by budgets, many are inclined to purchase low-cost wireless accessories in conjunction with their smartphones. Recent reports indicate that the burgeoning ‘AI headset’ market—essentially synonymous with wireless earbuds and headphones—largely consists of products priced under $70.

Current Market Trends for ‘AI Headsets’ in China

According to a new study by Runto Technology, cited by MyDrivers, affordable AI headsets have captured over half of the Chinese market. Specifically, products priced below 500 yuan ($69.76) account for a staggering 60.1 percent of total sales, a significant increase from the 18.8 percent recorded in the latter half of 2024. Although Apple’s AirPods are likely excluded from this low-cost category, they still hold a notable place in the market.

Further insights reveal that headsets priced between 1, 000 and 1, 500 yuan ($139.50-$209.25) comprise 27 percent of the market share, while products above 1, 500 yuan represent a meager 4 percent. Currently, the most affordable option in Apple’s lineup is the AirPods 4, which can be purchased for $99.99 on Amazon. However, these do not include features such as Active Noise Cancellation or silicone ear tips designed for a secure fit. Moreover, launching a budget version of the AirPods could potentially dilute Apple’s reputation for delivering high-quality products.

Apple's AirPods will have a tough time selling in China as 'AI handsets' under $70 make up 60 percent of the country's market share — Chart illustrating the strong presence of premium ‘AI headsets’ in the Chinese market

Considering the AirPods 4, it remains uncertain what sacrifices would need to be made if they were to compete with budget earbuds priced below $70. As such, Apple may be more prudent to focus on enhancing features within its premium range. This is especially anticipated as the company gears up for the introduction of the AirPods Pro 3 next month, potentially unveiling advanced functionalities and improvements that could retain consumer interest.

Source: MyDrivers

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