Tough competition from Samsung enforced Apple to reduce AirPods production

Today, Samsung released its first-quarter 2021 results, which reveal a hike in operating profit and revenue, in a comparison with the figures of Q1 2020. Moreover, it became possible with the record sales of consumers’ products including TVs, smartphones, home appliances, and more.

However, hearable products including Galaxy Buds also play a vital role in the company’s profitable growth as these gadgets also achieving some great sales numbers in the current scenario.

On the other hand, Apple just reducing the production of AirPods by 30 percent as it plans to produce 75-85 million AirPods rather than 110 million units. This implies the Cupertino-based company has reduced planned production of its wireless earphones by 25-35 million units this year.

Meanwhile, the company’s laptops and desktops clocked their best sales quarter ever during the second fiscal quarter amounting to $9.1 billion in sales. Therefore it is quite strange to see Apple reducing its Airpods production.

Apple faces tough competition from Samsung

Following the launch of AirPods, Samsung has also provided similar wireless earphones in the market, which in this case are recording good sales online as well in the offline business.

These hearables are even priced lesser than what Airpod costs ($159), providing rich and immersive sound quality. In addition, the same tactics applied to other products leading to less profit margin for Apple.

Therefore, this strategy of Samsung generated tough competition for Apple, not only in terms of the earphone market but also in the category of smartphones and other smart gadgets.


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