True Wireless Earbud ASPs Fell in Q1 as Sub-$50 Entries Rose, Says Canalys

Apple, Samsung and Xiaomi retained their top three positions in the global true wireless stereo (TWS) market in Q1, but only Apple grew shipments, reported Canalys Monday. Apple’s AirPods shipments grew 3% year on year to 19.3 million; Beats by Dre shipments jumped 555% to 2.4 million, driven by the Studio Buds and Fit Pro. Vendors are using audio names with strong brand equity in sound to expand their total addressable markets, said Canalys analyst Jason Low. Devices from sub-brands like Apple's Beats by Dre can depart from the vendors’ core design philosophy and develop their own unique styles and niches, Low said, saying, “That’s important in a category where design and feature homogenization are common." Samsung’s Galaxy Buds TWS shipments fell 13% in the quarter, while its JBL TWS shipments grew 31%. The overall TWS market grew 17% to 68.2 million shipments in the quarter. Skullcandy, in fourth, had a 53% unit increase to 3.3 million, Canalys said. The average selling price of the top five TWS vendors, which also included Xiaomi and Edifier, fell to $144 from $153 in the year-ago quarter, with Skullcandy, Edifier and JBL gaining share “after doubling down on the sub-$50 segment,” said analyst Sherry Jin. That segment is “likely to bear the brunt of rising costs and inflation” as “a crowded entry-level segment, rising costs and supply constraints also add to vendors' problems.” Manufacturers now need to explore niche use cases, such as mobile gaming, work and fitness, Low said.