They already generate nearly twice the revenue iPods ever did, and they’re just getting started.
From Dediu’s “AirPods,” posted Thursday on Asymco.com:
The Apple Watch is now bigger than the iPod ever was. As the most popular watch of all time, it’s clear that the watch is a new market success story. However it isn’t a cultural success. It has the ability to signal its presence and to give the wearer a degree of individuality through material and band choice but it is too discreet. It conforms to norms of watch wearing and it is too easy to miss under a sleeve or in a pocket.
Not so for AirPods. These things look extremely different. Always white, always in view, pointed and sharp. You can’t miss someone wearing AirPods. They practically scream their presence.
For this reason wearers, whether they want to or not, advertise the product loudly. Initially, when new, they looked strange, even goofy. But the product’s value to the wearer overcame any embarrassment and for those courageous enough to wear them, they became a point of pride. As all things distinctive enough, the distinction rubs on the user and that distinction begets new users and new distinction, and so on. So now we have a bona fide cultural phenomenon… (see below)
The product is part of the “wearables” category at Apple which includes watch and is growing almost 50%/yr. and not from a small base either. The following graph show the history of the segment since 2009 (before the iPod peaked).
Click to enlarge.
My take: A bona fide cultural phenomenon among jet-setters, perhaps. In Greenfield, MA (pop. 17,000), where I’ve only seen one other guy wear them, AirPods still look goofy and strange.
Both AirPods and Watches popping out like our beautiful spring flowers. Interestingly, I see are a lot more Apple Watches on younger people, male and female, over the last year. Initially the Watch was heavily skewed to older geeky guys. AirPods skew younger.
Our “Y” is very inclusive. But our location creates a demographic and economic sample bias.
I’m seeing about 1 to 3 every time I go shopping (Costco, Trader Joe’s, Krogers, Lowes, Whole Foods).
MMDV (My mileage does vary.)
The transitioning of wearables’ design acceptance is a matter of time, once individuals recognize poignantly the benefits to be derived from these innovative devices.
Tim Cook seems always to limit his discussion of the Apple Watch’s application to Health Sciences, even inferring that a legacy of Apple will be its contribution to Health and Wellness. Air Pods target music, although we are hearing rumors of sensors that will be embedded within Air Pods for health monitoring benefits for future wearers. Both devices (Apple Watch & Air Pods) have industrial applications and yet, we never hear Apple address if they are doing research, development and application of uses for the devices in industrial settings. This absence of wearables application in industrial uses puzzles me.
I look forward to reading your observations one year from now.
I got my first pair on day 1 at the end of 2016. Just got my AirPods 2 this Wednesday shipped direct from Shanghai via UPS. Sweet upgrade!
– Dr. Scott
Yesterday in a tiny cafe with only 3 customers during the hour I was there said I was at least the third to pay using my watch.
(Any reports on NZ?)