"Catch the AirPods" Samsung and LG Chase... Big Wireless Earphone Battle in the Second Half of the Year

New LG Tone Free (Source: LG Electronics Germany)

[Asia Economy Reporter Joselgina] The big battle in the wireless earphone (TWS) market led by Apple AirPods is set to intensify in the second half of the year. With global wireless earphone shipments expected to surpass 500 million units this year, each company aims to seize market leadership through new product launches. Not only the absolute leader Apple but also Samsung Electronics and LG Electronics, which has already exited the smartphone business, are preparing to launch new products. The key feature is significantly improving cost-effectiveness by lowering prices while equipping noise-canceling functions, previously only available in premium product lines.

◇Samsung and LG Launch New Products

According to industry sources on the 9th, Samsung Electronics and LG Electronics have completed preparations to release new wireless earphones, the ‘Galaxy Buds2’ and ‘LG Tone Free,’ respectively, in the third quarter.

The Galaxy Buds2, to be unveiled at next month’s Galaxy Unpacked event, is the successor to the first-generation model released in 2019. It is expected to feature Active Noise Cancelling (ANC), which was previously only supported in the premium ‘Galaxy Buds Pro’ and ‘Galaxy Buds Live’ models. Initially, it was reported that ANC would be excluded to differentiate from premium products, but as mid-to-low-end market wireless earphones with ANC have been released one after another recently, Samsung Electronics appears to have changed its strategy. The price will remain similar to the previous model, around $149 to $169 (approximately 168,000 to 190,000 KRW). This pricing strategy aims to challenge Apple’s premium AirPods Pro ($249) with an affordable price range.

LG Electronics is also launching the new LG Tone Free (DFP8W) this month, with enhanced performance compared to its predecessor, targeting the market aggressively. The new LG Tone Free draws attention as it is a new product released after LG’s decision to withdraw from the mobile business. LG Electronics will dissolve its MC Business Division, responsible for mobile business, by the end of this month, but the wireless earphone business will continue under the Home Entertainment (HE) Division.

According to specifications recently revealed on the German branch’s website, the new Tone Free can be used for up to 10 hours on a single charge, which is 3 hours longer than the previous model. Even with ANC turned on, it can be used continuously for 6 hours. LG Electronics appears to have strengthened sterilization functions, likely in response to the so-called ‘ear disease controversy’ centered on competitors’ in-ear wireless earphones such as Apple and Samsung this year. LG Tone Free is the only wireless earphone equipped with UV Nano Care technology that sterilizes harmful bacteria. Additionally, the new Tone Free includes a case with ultraviolet sterilization and disinfection functions.

Samsung Electronics and LG Electronics are not the only ones preparing new product launches. The overseas IT company Nothing will unveil the Ear 1 wireless earphones with ANC at an event on the 27th, priced around $99. Apple is also expected to release the AirPods 3 (tentative name) within the year. As the first new product since the AirPods Pro in November 2019, it is anticipated to attract significant replacement demand from existing users.

An industry insider said, "The AirPods 3 is known to exclude ANC to differentiate from the Pro model and lower the price to attract a broader customer base," but added, "Considering the increasing number of wireless earphones with ANC, there is a possibility of a last-minute strategy change."

In addition, Japanese Sony, which has significantly reduced its smartphone business, and Apple’s audio brand Beats, released new wireless earphones ‘WF-1000XM4’ and ‘Beats Studio Buds,’ respectively, last month, ahead of others.

◇Rapid Growth of the Wireless Earphone Market... Surpassing 500 Million Units This Year

Even LG Electronics, which has withdrawn from the smartphone business, is focusing on launching new wireless earphones because the market growth is considered explosive. Market research firm Strategy Analytics (SA) forecasts that global wireless earphone shipments will reach 530 million units this year, a 76.7% increase from the previous year. From 1 million units in 2016 to over 500 million this year, shipments are expected to reach 1.2 billion units by 2024. This growth is largely due to the disappearance of earphone jacks on smartphones and increased consumption of mobile content such as videos. Samsung Electronics’ wireless division regards wireless earphones and wearables as new growth engines.

Challenges from major manufacturers competing against the top player Apple are intensifying. In the first quarter of this year, Apple’s market share was 26%, still overwhelmingly ahead of second-place Xiaomi (9%) and third-place Samsung Electronics (8%). However, the gap between Apple and its challengers is gradually narrowing. The market share gap between Apple and Samsung Electronics decreased from 26 percentage points in the first quarter of last year to 18 percentage points this year. Market research firm Counterpoint Research predicts that Apple’s growth rate in the wireless earphone market will be only 15% this year, while Xiaomi and Samsung Electronics are expected to grow by 35% and 39%, respectively.

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