Apple’s AirPods generated $18 billion in revenue in 2023, outpacing companies like Spotify ($14B), Nintendo ($12B), eBay ($10B), and Intuit ($12B), according to Bloomberg estimates. These figures highlight the immense popularity of Apple’s wireless earbuds, introduced in 2016 alongside the iPhone 7—the first iPhone to eliminate the headphone jack. Since their debut, Apple has sold an estimated 550 million units, cementing AirPods as a cornerstone of its accessory lineup.
The transition to wireless audio marked a pivotal shift for iPhone users and a lucrative one for Apple. Previously bundled wired earbuds gave way to a premium standalone product, turning a cost into a profit center. AirPods have become synonymous with convenience, but they’re also known for being easy to lose, contributing to an additional $700 million in revenue in 2023 from replacements alone.
AirPods’ Growing Market Share and Revenue
AirPods dominate the wireless earbud market, holding a 34.4% share in the United States and 19% globally in the true wireless sound (TWS) segment. They outpace competitors like Sony (17%), Samsung (16%), BOSE (10%), and others, maintaining their position as the world’s top-selling wireless earbuds. In the broader hearables market, Apple’s AirPods are a global leader, appealing to users seeking seamless integration with iOS devices.
Revenue Growth Over Time
AirPods revenue has seen consistent double-digit growth since their launch:
- 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%)
The earbuds account for 5-7% of Apple’s total revenue, underscoring their importance to the company’s financial performance.
By 2030, annual revenue is expected to soar to $45 billion, surpassing iPad sales. Apple also anticipates the attachment rate for AirPods among iPhone buyers will rise to 60% by the end of the decade, solidifying their role as an essential iPhone accessory.
With their unmatched market presence and continued growth, AirPods have redefined the wireless audio market and solidified Apple’s dominance in the tech accessory space.
