Pebble vs Kongnamul... Next Year's Big Wireless Earphone Match

Samsung Expected to Launch New Products in January, Apple in March
Samsung Improves Noise Cancelling on 'Galaxy Buds Pro'
Wearables See Double-Digit Growth... Becoming Essential Accessories

[Asia Economy Reporter Han Jinju] "Pebble or bean sprout."

Samsung Electronics and Apple are set to face off head-to-head next year in the wireless earphone market with premium new products. The pent-up demand that was suppressed after the COVID-19 pandemic, combined with replacement demand, is expected to continue driving growth in the wireless earphone market.

Samsung vs Apple Preparing to Unveil New Products

Galaxy Buds Pro Rendering Image (Source=voice)

According to industry sources on the 14th, Samsung Electronics will unveil its wireless earphones, the 'Galaxy Buds Pro,' at the Unpacked event in January next year. The Galaxy Buds Pro will be in-ear type wireless earphones, like the existing Galaxy Buds series, equipped with active noise canceling (ANC) functionality. This will be the second noise-canceling earphone following the Galaxy Buds Live released in August last year. The earbud design resembles a pebble, differentiating it from previous Buds series. Leveraging the advantages of in-ear earphones, the noise canceling feature is expected to be significantly improved compared to its predecessor.

Apple, the 'No.1 wireless earphone' maker, is also expected to release the 'AirPods 3' as early as March next year. Apple has not launched a new wireless earphone product since releasing the AirPods Pro, priced around 300,000 KRW, in November 2019. This is why a large replacement demand from existing users is anticipated. The AirPods 3 will have a design similar to the AirPods Pro but will exclude the active noise canceling feature, making it much more affordable.

Apple AirPods Pro

Apple removed the headphone jack starting with the iPhone 7 in 2016 and launched the first generation AirPods. From the iPhone 12 onwards, even wired earphones were excluded. On the 8th (local time), Apple also released the wireless headphones 'AirPods Max,' priced around 700,000 KRW. In the hearable device market, including wireless earphones, Apple recorded shipments of 29.6 million units in the third quarter, ranking first. Samsung Electronics followed in second place with 8.4 million units, an increase of 2.7 million units compared to the previous year.

Becoming a Necessity... Double-Digit Growth

The reason manufacturers are focusing on wireless earphones is due to the high growth potential of the wearable market. The wireless earphone market is expected to grow annually by about 19.8% until 2024. While the smartphone market has reached its peak and replacement cycles have lengthened, the wireless earphone market is still in its early stages and has a lower replacement burden compared to smartphones.

In particular, as mobile video content consumption increases and online education and video conferencing have become more active due to the pandemic, wireless earphones have established themselves as essential accessories. The wireless earphone market size is expected to grow from 220 million units this year to 370 million units in 2021 and reach 600 million units in 2022. IDC researcher Gitesh Ubrani said, "As spending on leisure activities has decreased, consumers have opened their wallets for electronics such as wearables. The double-digit growth in the wireless earphone market means that many consumers in both emerging and developed countries are purchasing wearable devices for the first time. The user base of wearables will expand, and market demand will continue."

Xiaomi Mi True Wireless Earphones 2

Especially as the wireless earphone lineup expands, the market is clearly divided into premium and mid-to-low price segments. According to market research firm Counterpoint Research, the sales share of wireless earphones priced under 100,000 KRW was 56% in the third quarter, a significant increase from 48% in the second quarter. Following Samsung Electronics and Apple, LG Electronics has also joined the wireless earphone battle. LG plans to release new products next year following the Tone Free series unveiled this year. Huawei, hit hard in its smartphone business by US sanctions, is also seeking breakthroughs with new wearable products such as wireless earphones and smartwatches.

Meanwhile, shipments of wearables including smartwatches are expected to reach 760.4 million units in 2024, up from 436.5 million units this year. The wearable market grew about 35% in the third quarter compared to the same period last year. Shipments by manufacturer are Apple (41.4 million units), Xiaomi (17 million units), Huawei (13.7 million units), and Samsung Electronics (11.2 million units).

This content was produced with the assistance of AI translation services.