Apple AirPods Revenue Hits $18 Billion in 2023, Surpassing Spotify's Total Revenue

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December 23, 2024 at 05:42 AM

Apple's AirPods generated $18 billion in revenue during 2023, surpassing the annual revenue of major companies like Spotify ($14B), Nintendo ($12B), and eBay ($10B).

Since their introduction alongside the iPhone 7 eight years ago, Apple has shipped approximately 550 million AirPods units. The removal of the traditional headphone jack and discontinuation of free wired earbuds with iPhone purchases transformed a cost center into a significant revenue stream for Apple.

person holding Apple AirPods

AirPods Revenue Growth:

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%)

Market dominance:

34.4% market share in the United States
19% global market share in true wireless sound (TWS)
Leading competitors: Sony (17%), Samsung (16%), BOSE (10%)

Lost AirPods generate approximately $700 million in replacement sales annually. Currently representing 5-7% of Apple's total revenue, AirPods sales are projected to reach $22 billion in the coming year and $45 billion by 2030, potentially exceeding iPad sales. Apple anticipates 60% of iPhone buyers will purchase AirPods by 2030.