Apple's Q4 AirPod Sales Grew 20%, But Its Share Slipped on Competitive Pressure

True wireless stereo (TWS) shipments passed the 100-million-unit mark for the first time in Q4, growing 21% to 103.8 million vs. 46% growth in the year-earlier quarter, reported Canalys Wednesday. Apple continues to dominate the market, but a delay of the third-generation AirPods from Q3 to Q4 hurt 2021 sales, with AirPods shipments falling 11.4% to 86 million units for the year. AirPods’ Q4 sales bumped 20% year on year to 40.4 million, but Apple’s share in the quarter slipped from 39.3% to 38.9% year on year. The AirPods maker is “being challenged to deliver on the spatial audio experience with improvements discernable to the average listener and better ecosystem integration to stay ahead,” said Canalys analyst Sherry Jin. Competition from Sony, Bose, Jabra and Skullcandy is challenging smartphone vendors to improve integration of their branded TWS devices within their ecosystems to ensure the devices “are not just simple audio accessories to smartphones,” said analyst Cynthia Chen. HD audio consumption, gaming and remote productivity are opportunities for TWS manufacturers to drive next-generation content and technology, possibly being an entry point to the metaverse, said Chen. For full-year 2021, TWS earphones’ share of the smart personal audio market reached 63%; their improved availability and accessibility is making wireless earphones “obsolete” and wireless headphones “a niche,” said Chen. Still, a large number of users continue to rely on wired devices. Vendors should encourage users to move toward wireless devices to enjoy an improved mobile user experience, while addressing key concerns over price, comfort, battery life and ease of use, Chen said.