The sneaky genius of Apple's AirPods empire

Apple will introduce a new headset next year that will feature the new product, virtual reality and augmented reality. Although there are doubts about whether the company will be successful in this area, Tim Cook's great success with Airpods cannot be ignored.

The sneaky genius of Apple's AirPods empire
AirPods
26-09-2022 10:56

Next year Tim Cook , Apple Inc. and the company will introduce a headset that combines virtual reality and augmented reality. The headset, codenamed N301, is estimated to be Apple Reality Pro , according to trademark filings.

According to the first information learned about the headset, it is predicted that the components of the device will probably surpass VR headsets made by Facebook , Sony and HTC . It seems likely that Apple's VR headset will look better, run faster, and include more immersive graphics. However, it is also likely to be disappointing at first.

7 years working on

Apple has been working on these headphones for 7 years. Currently, 2,000 people are involved in the project, including one who previously led VR development at NASA. But today's VR market is still very small by Apple standards. According to market research firm IDC , Meta Platforms Inc. Facebook, which changed its name to Facebook, accounted for almost 80 percent of headphones sold last year.

All of this business represents just over 0.5 percent of Apple's overall revenue, which sounds more like the company's selling flashy iPhone cases than a fundamental strategic shift. A decade after Google Glass 's failure, Apple will have to prove that its headset will become a mainstream hit. This makes Reality Pro an attractive target for anyone who thinks the company has lost their way. In the 11 years since Steve Jobs ' death, everything Cook has done has become a target.

 

These criticisms are that although Apple's market value has increased 7 times since Cook's takeover to over $2.5 trillion, the iPhone is more than 15 years old and cannot achieve this kind of growth forever. Apple has given more weight to this theory with flawed annual phone updates that are made like a mission.

The biggest success story of the last 10 years

Even so, with everyone criticizing the last few new phones, Cook has quietly created the tech industry's biggest success story of the past decade: AirPods. These little headphones have suddenly become essential everywhere. More than anything Apple sells, the headphones illustrate why the company has had such success with Cook and why it's unlikely to face real competitors anytime soon.

AirPods are extremely fragile, have very good bass, and an ear stick looks like it's broken. They're easily clogged with earwax, getting lost in subway grills or seat cushions. Even if they don't happen to you, they will need to be replaced every few years because lithium-ion batteries are not removable.

While Apple says it uses more recycled materials in its latest releases, AirPods remain costly to both the environment and our wallets, especially when compared to the wired EarPods that have been available for free with the company's products for most of the past two decades. Yet lately people love them

It is not known exactly how much the headphones are sold, as Apple reports the sales figures of smart watches, speakers and other accessories in bulk. However, some analysts say that 120 million AirPods were sold in 2021.

IDC and Bloomberg Intelligence estimates show that AirPods account for nearly half of the sales of "Wearables, Home and Accessories", which Apple calls its fastest growing business. From 2016 to 2021, sales in this category increased 245% to $38 billion. Apple set the standard for wireless headphones and turned a free bundle of accessories into something worth buying for $200.

Apple first introduced AirPods with the iPhone 7 six years ago. Two months ago, Samsung launched its own headphones, but the battery life was insufficient. Phil Schiller, who was the company's head of marketing at the time, explained that AirPods users should expect a "truly magical Apple experience."

Was it a tactic to remove the headphone jack?

Reviewers found little to recommend about the AirPods beyond their vertical integration. "I don't think they're quite ready yet," Lauren Dragan , Wirecutter's headphone editor , told the New York Times . But something else made Apple's wireless earbuds more appealing: The company made wired ones worse

In iPhone 7 , the traditional headphone jack is combined with the charging port. To plug in old earphones, you need an adapter that protrudes bulky from your phone. Schiller suggested that the idea was to force customers to buy AirPods, and that the design team only thought of better. Schiller said, “Really, one word is enough: Courage. “The courage to continue drives us to do something new that heals us all.”

Schiller's words were instantly ridiculed, but he and Cook had the last laugh. The sabotage of the headphone jack and the hassle-free installation of AirPods were enough to sell them to millions, and many later bought more. This achievement, which probably accounts for no more than 5 percent of Apple's total revenue, sums up the company's success after Jobs.

Competition litigation

Apple offers a product that works well with the iPhone and then does its best to make it compare poorly to competing products. Apple's competitors have been claiming for years that the iPhone ecosystem violates antitrust law. During a Senate hearing last year, Kirsten Daru, an attorney representing Tile Inc., accused Apple of "systematic abuse of market power and platform dominance."

Tile makes a small key chain that you attach to your keys so they don't get lost. Apple stopped selling the other company's products in retail stores shortly before releasing its own version called AirTag. An AirTag is as easy to set up as AirPods, whereas competitors like Tile don't have access to such setup shortcuts. At the time, Apple said its success was the product of innovation and fostered competition, if any.

Other times, the company failed to underline this message. For more than a decade, messages between iPhones have been using an Apple-only system called iMessage . Text from iPhone users appears in blue bubbles and includes a few special features, such as three dots that flutter as the person you're chatting with, while text from non-Apple phones appears in green bubbles.

This is annoying both for Android users who can be excluded from group chats or miss iPhone users' messages . In online dating, this can cause Android users to be tagged.

Apple could have fixed this but it didn't. Epic Games Inc. In a lawsuit filed by Apple, senior Apple executives discussed making iMessage available to Android users, but rejected the idea because, among other reasons, they were concerned that doing so would make it easier for parents. They worried that doing so would make it easier for iPhone-owning parents to get cheaper alternatives for their kids.

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