Apple's AirPods generated $18 billion in revenue during 2023, surpassing the annual revenue of major companies like Spotify ($14B), Nintendo ($12B), and eBay ($10B). Since their introduction alongside the iPhone 7 eight years ago, Apple has shipped approximately 550 million AirPods units.

AirPods Revenue Growth:

• 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%)

Market Leadership:

• 34.4% market share in the United States
• 19% global market share in true wireless sound (TWS)
• Main competitors: Sony (17%), Samsung (16%), BOSE (10%)

Key Facts:

• Contributes 5-7% of Apple's total revenue
• Users spent $700 million replacing lost earbuds
• Projected revenue for 2024: $22 billion
• Expected revenue by 2030: $45 billion
• Target attachment rate to iPhone buyers by 2030: 60%

The transition from providing free wired earbuds to premium wireless AirPods has proven highly profitable for Apple, with consistent double-digit growth each year since launch. This strategic shift transformed a product cost into a significant revenue stream, particularly following the removal of the headphone jack from iPhones.

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