Image credit: Apple

The market’s best-selling wireless earbuds are outselling major tech companies, here’s how.

Apple’s AirPods have done more than redefine how we listen to music, transforming into one of the company’s most lucrative products. According to Bloomberg estimates, AirPods generated an astounding $18 billion in revenue in 2023, surpassing tech giants like Spotify ($14 billion), Nintendo, ($12 billion), eBay ($10 billion), and Intuit ($12 billion).

The journey to success

When Apple debuted AirPods alongside the headphone jack-less iPhone 7 in 2016, the backlash was intense. Fans were furious at losing their free wired earbuds, with Apple forcing users to buy either a headphone jack adapter or a pricey wireless alternative.

Yet, almost a decade later, Apple’s move has paid off big time. By 2023, Apple had shipped an estimated 550 million units of AirPods, turning its wired earphone product cost into a positive revenue through its wireless counterpart. 

Breaking down the numbers

Apple’s ability to scale AirPods’ revenue is remarkable, with consistent growth year after year:

  • 2017: $1.76 billion
  • 2018: $3.2 billion (+82%)
  • 2019: $6.1 billion (+90%)
  • 2020: $10.1 billion (+65%)
  • 2021: $12.1 billion (+20%)
  • 2022: $14.5 billion (+19%)
  • 2023: $18 billion (+24%)
Image credit: Techspot

Double-digit growth every year demonstrates the ever-increasing popularity of these earbuds. By 2023, AirPods accounted for 5-7% of Apple’s total revenue and dominated 34% of the US wireless earbud market. Globally, they captured 19% of the true wireless sound market.

Remarkably, owners spend an estimated $700 million annually replacing lost pairs. With AirPods renowned for being easy to lose, this is only pushing more revenue for Apple.

What’s next?

Industry analysts predict that AirPods’ success will only continue. Following the 2024 holiday season, sales could reach as high as $22 billion. By 2030, AirPods are projected to generate $45 billion in yearly revenue, becoming Apple’s third-largest product after the iPhone and Mac.

AirPods’ impact

Initially launched as a convenient wireless alternative for iPhone users, AirPods have leveled up since then. Their seamless design and innovative features have cemented their place within mainstream culture, making it easy to see why AirPods are earning Apple billions.