Apple will launch the AirPods 3 and end production of the AirPods 2 in the first half of 2021, Tianfeng International analyst Ming-Chi Kuo said in a new report.
As the AirPods 3 looks similar to the AirPods Pro, this design will be able to drive replacement demand, he added.
He said in the report that AirPods Pro shipment estimates are better than expected as they benefit from new features and new designs.
He said the worst of the AirPods 2 shipments are behind us, with growth expected in both the third and fourth quarters, thanks to promotions for students and inventory de-stocking in the second quarter of this year.
Benefiting from the upcoming iPhone 12's cancellation of complimentary headphones and the new AirPods 3 to be released next year. Kuo estimates that total AirPods shipments will grow about 28% YoY to 120 million units in 2021.
Kuo expects Apple to continue to offer AirPods promotions in the second half of this year and in 2021.
If AirPods shipments in the second half of this year can be better than expected, the promotional program and the cancellation of the iPhone 12 complimentary headphones on behalf of AirPods shipments are very helpful, and there is still room for improvement in total AirPods shipments in 2021, he said.
He also expects STMicroelectronics to break AMS's exclusive supply of optical distance sensors in 20201 and become a new supplier.
Although year-over-year growth in AirPods shipments in 2021 is lower than in 2020, suppliers could still benefit significantly in 2021 because of better-than-expected demand for AirPods Pro and upgraded specifications for AirPods 3 components, he said.
