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.

After removing free wired earbuds from iPhone packages, Apple transformed a cost center into a significant revenue stream. Lost AirPods alone generated an estimated $700 million in replacement sales.

Annual 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%)

AirPods dominate the wireless earbud market with:

• 34.4% market share in the United States
• 19% global market share in the hearables segment

Major competitors' global market share:

• Sony: 17%
• Samsung: 16%
• BOSE: 10%
• Sennheiser: 5%
• LG: 4%
• Jabra: 2%

AirPods currently represent 5-7% of Apple's total revenue. Analysts project AirPods revenue to reach $22 billion in 2024 and $45 billion by 2030, potentially surpassing iPad sales. Apple expects 60% of iPhone buyers to purchase AirPods by 2030.

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