Apple AirPods made a $6 billion business and may become Apple’s ‘third-largest business’

Apple’s stock has risen more than 77% this year.

Apple recently launched AirPods Pro and sales of the same doubled to $6 billion this year thereby becoming the company’s hot-selling product. Sacconaghi, who has a market perform rating on Apple’s stock said that if sales of the wireless headphones grew at the same rate again in 2021, the product would become Apple’s third-largest business. The analyst said in a note that Apple could sell 85 million AirPods in 2020, generating about $15 billion in revenue.

Apple AirPods made a $6 billion business and may become Apple's ‘third-largest business’
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“Given AirPods’ extraordinarily steep adoption curve and rapid saturation of the iPhone installed base, we see a dramatic deceleration in AirPods revenue growth by 2021 or 22, to single-digit growth rates or possibly lower,” Sacconaghi wrote.
Also, a report by CultofMac that quotes Horace Dediu predicted that by the end of the fourth quarter, AirPods would have earned $4 billion for Apple. As per a report by CNBC, AirPods Pro is out of stock online and offline including most big retail players in the US.
In India, e-commerce platforms like Amazon and Flipkart do not have AirPods in stock. Apple was expected to sell around 3 million units of AirPods and AirPods Pro during the Black Friday and Cyber Monday weekend sales.



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