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Apple to Sell AirPods Max Over-the-Ear Headphones for $549

Apple adds to its already mega-popular product line.
(Yalcin Sonat)
(Yalcin Sonat)
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Apple unveiled plans to sell its new, over-the-ear AirPods Max headphones on Tuesday, WSJ reports.

Why It Matters: It’s an expansion of what has been a highly lucrative product line for Apple, and with a price of $549, that trend will only continue if demand remains constant. It’s also a direct strike against competitors such as Bose and Sony, both of which offer similar products.

Details, Details, Details:

  1. Price: $549
  2. Features: Noise Cancelling, Advanced Acoustics
  3. What Else: Up To 20 Hours of Battery Life

Apple continues to broaden its product offerings as iPhone sales slow. It’s a week away from launching its subscription fitness service, which costs $10 monthly or $80 yearly.

  • Now, Apple can call Peloton a competitor, as the exercise bike company doubles down on its digital platform.
  • Apple has also benefited from increased demand for Mac laptops, iPads and other digital services due to the pandemic.

So What Happens To Beats? “Apple’s over-the-ear headphone offerings for years had been centered on its Beats products. Apple bought Beats for nearly $3 billion in 2014 as part of a broader deal to bolster its music business.”

  • Apple’s trended toward beefing up its own wearables business. AirPods have made up roughly 50% of the company sales and made it less dependent on iPhones.

Let Me Leave You With A Number: Apple’s fiscal year ended on Sept. 26. Revenue from wearables (headphones, watches and other accessories) was $7.88 billion, a 21% increase over the last fiscal year.

Justin Oh:

Apple needs to either come up with the next Airpods, which this doesn’t seem to be, or actually compete in the software game. 

It looks like they are trying to beef up their content software game, but they’re currently losing to best-in-class companies like Spotify, Peloton, etc. Not to mention Amazon is aggressively pushing into the space as well.

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