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Apple's (AAPL) Airpods Max, Fitness+ to Boost Holiday Sales
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Apple (AAPL - Free Report) launched its much anticipated new over-the-ear, wireless Airpods Max headphones, which retail at $549, in a bid to gain market share ahead of the holiday season.
Additionally, Apple Fitness+ subscription services built for Apple Watch will be rolled out from Dec 14.
Notably, per IDC’s latest report, Apple continues to dominate the wearables market with 33.1% share in third-quarter 2020. Xiaomi, Huawei, Samsung and Fitbit trail with 13.6%, 11%, 9% and 2.6% market share, respectively.
The new devices and expanding healthcare features are expected to further boost Apple’s wearables market share. The company’s shares have returned 69.4% year to date, outperforming the Computer - Mini computers industry’s rally of 67.7%.
Year-to-Date Performance
Airpods Max Features to Intensify Competition
The removal of the third-party audio products like Bose and Sonos from the App store in October hinted at the launch of Airpods Max, rumored as Airpods Studio, before the end of the year.
The AirPods Max is fitted with custom 40mm dynamic drivers from Apple and its proprietary H1 chip. It offers active noise cancellation, high-fidelity audio, and up to 20 hours of battery life.
Markedly, the new headphones, launching on Dec 15, have a total of nine microphones, eight of which also assist the Active Noise Cancellation (ANC) function to block noise from all directions.
Inspired by Apple Watch, the Airpods Max has an integrated digital crown control for finer volume changes as well as the ability to play and pause music, skip tracks and handle phone calls.
Apple has been facing strong competition from incumbents like Sony , Bose and Sennheiser in the wireless headphones market, which is expected to generate $34 billion revenues by 2024, per a Market Research report.
The accessories business is instrumental to the company’s push to generate more revenue per user as people hold on to their iPhones for longer. Last year, Apple released the Beats Solo Pro, wireless headphones that feature Apple’s H1 chip and cost $300.
In fourth-quarter fiscal 2020, Wearables, Home and Accessories sales increased 20.8% year over year to $7.88 billion and accounted for 12.2% of total sales.
Apple Fitness+ to Complement Apple Watch
Apple had previously unveiled Fitness+ at the Time Flies event. It is a personalized workout experience built for Apple Watch, stirring up competition for the likes of Peloton (PTON - Free Report) .
Fitness+ tracks health and workout-related data from Apple Watch that users can view on their iPhones, iPads, or Apple TVs. Markedly, Apple Fitness+ will include Cycling, Treadmill, Rowing, HIIT, Strength, Yoga, Dance, Core and Mindful Cooldown. Each will be accompanied by music curated by trainers.
Fitness+ will be available to Apple Watch customers as a subscription service for $9.99 per month or $79.99 per year.
This Zacks Rank #3 (Hold) company’s wide array of healthcare offerings in watchOS including activity tracking, fall-detection alerts, heart-rate monitoring and an electrocardiogram to detect irregularities with the heart’s rhythm make it a key differentiator in the wearables space. Apple Fitness+ is expected to become major a growth driver in the long haul. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Moreover, the availability of Apple’s first 5G-enabled iPhone 12 series, new iPad and iPad Air powered by A12 Bionic chip, Apple Watch Series 6 and Apple Watch SE alongside its bundle-subscription pack, Apple One are expected to boost product and service revenues in the holiday season.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
Apple's (AAPL) Airpods Max, Fitness+ to Boost Holiday Sales
Apple (AAPL - Free Report) launched its much anticipated new over-the-ear, wireless Airpods Max headphones, which retail at $549, in a bid to gain market share ahead of the holiday season.
Additionally, Apple Fitness+ subscription services built for Apple Watch will be rolled out from Dec 14.
Notably, per IDC’s latest report, Apple continues to dominate the wearables market with 33.1% share in third-quarter 2020. Xiaomi, Huawei, Samsung and Fitbit trail with 13.6%, 11%, 9% and 2.6% market share, respectively.
The new devices and expanding healthcare features are expected to further boost Apple’s wearables market share. The company’s shares have returned 69.4% year to date, outperforming the Computer - Mini computers industry’s rally of 67.7%.
Year-to-Date Performance
Airpods Max Features to Intensify Competition
The removal of the third-party audio products like Bose and Sonos from the App store in October hinted at the launch of Airpods Max, rumored as Airpods Studio, before the end of the year.
The AirPods Max is fitted with custom 40mm dynamic drivers from Apple and its proprietary H1 chip. It offers active noise cancellation, high-fidelity audio, and up to 20 hours of battery life.
Markedly, the new headphones, launching on Dec 15, have a total of nine microphones, eight of which also assist the Active Noise Cancellation (ANC) function to block noise from all directions.
Inspired by Apple Watch, the Airpods Max has an integrated digital crown control for finer volume changes as well as the ability to play and pause music, skip tracks and handle phone calls.
Apple has been facing strong competition from incumbents like Sony , Bose and Sennheiser in the wireless headphones market, which is expected to generate $34 billion revenues by 2024, per a Market Research report.
The accessories business is instrumental to the company’s push to generate more revenue per user as people hold on to their iPhones for longer. Last year, Apple released the Beats Solo Pro, wireless headphones that feature Apple’s H1 chip and cost $300.
In fourth-quarter fiscal 2020, Wearables, Home and Accessories sales increased 20.8% year over year to $7.88 billion and accounted for 12.2% of total sales.
Apple Fitness+ to Complement Apple Watch
Apple had previously unveiled Fitness+ at the Time Flies event. It is a personalized workout experience built for Apple Watch, stirring up competition for the likes of Peloton (PTON - Free Report) .
Fitness+ tracks health and workout-related data from Apple Watch that users can view on their iPhones, iPads, or Apple TVs. Markedly, Apple Fitness+ will include Cycling, Treadmill, Rowing, HIIT, Strength, Yoga, Dance, Core and Mindful Cooldown. Each will be accompanied by music curated by trainers.
Fitness+ will be available to Apple Watch customers as a subscription service for $9.99 per month or $79.99 per year.
This Zacks Rank #3 (Hold) company’s wide array of healthcare offerings in watchOS including activity tracking, fall-detection alerts, heart-rate monitoring and an electrocardiogram to detect irregularities with the heart’s rhythm make it a key differentiator in the wearables space. Apple Fitness+ is expected to become major a growth driver in the long haul. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Moreover, the availability of Apple’s first 5G-enabled iPhone 12 series, new iPad and iPad Air powered by A12 Bionic chip, Apple Watch Series 6 and Apple Watch SE alongside its bundle-subscription pack, Apple One are expected to boost product and service revenues in the holiday season.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>