Fresh analysis from Counterpoint Research hints at a growing appetite for truly wireless earbuds, with Apple the biggest beneficiary of the trend in spite of increased competition.

The market research firm has predicted that annual shipments of true wireless stereo (TWS) "hearables" in 2020 hit 238 million units, up 83 percent. The incredible growth is indicative of how Apple has managed to mainstream the market for wireless earphones.

All models of AirPods made up nearly one-third of TWS shipments in 2020, or 29 percent.

The Incredibly Profitable Apple Earbuds

This is actually down from the 41 percent unit share for the AirPods in the fourth quarter of 2019. The Apple earbuds dropping from 41 percent to 29 percent in the course of nine months is the biggest evidence that others are starting to catch up.

A table from Counterpoint Research listing estimated true wireless stereo hearables shipments in the third quarter of 2020

Counterpoint adds that the lower AirPods share indicates increased completion rather than a fall in unit sales for Apple. Diehard fans needn't worry because the 41 percent unit share has earned the company a whopping 62 percent of the revenue due to premium AirPods pricing.

The research firm commented:

Apple’s powerful iOS ecosystem, typically comprised of consumers with larger disposable incomes, has been the main driver for growth---especially in terms of revenues. High-end stalwart Samsung has also performed consistently.

While others are chasing Apple, the iPhone maker remains well ahead of the competition.

TWS Competition Is Heating Up

Counterpoint data shows that Xiaomi, Apple's nearest competitor in the TWS market, is a distant second at 13 percent. Meanwhile, Samsung and JBL claim the third and fourth spot, respectively, with just five percent unit share each.

Samsung just unveiled the new Galaxy Buds, keeping Apple under pressure. QCY, JLAB, Jabra, Sony, EDIFIER, and realme collectively accounted for 15 percent of TWS shipments in the third quarter of 2020.

Related: Are Apple's $549 AirPods Max Worth the Cost?

Counterpoint expects major potential in the low-end with budget earbuds costing much less than the AirPods, which start at $159. Indeed, half of the top 10 makers in the third quarter of 2020 were budget brands with sub-$50 and even sub-$20 offerings, the firm notes. "Xiaomi best illustrated the trend as it consolidated its number two spot," Counterpoint says.

If you're wondering about the increasing popularity of these things, look no further than Apple's decision to remove the headphone jack from the iPhone back in 2017. To make up for it, Apple introduced the AirPods and many rivals have since followed the trend.

Counterpoint senior analyst Liz Lee acknowledged as much, saying:

The trend around removing jacks and earphones from devices and boxes is becoming a big driver for TWS segment growth. It also helps that mobile media consumption continues to grow, making TWS the next must-have accessory.

Apple doesn't report how many AirPods it's selling, and many of its rivals do the same, meaning Counterpoint numbers are estimates. As such, take them with a pinch of salt. If TWS sales in 2020 really shot up a massive 83 percent, and Apple accounts for 29 percent of that, we can infer that Apple might have shipped nearly 70 million AirPods units last year.

Meet the AirPods Family

The AirPods family has enjoyed phenomenal growth following the release of the original $159 model three years ago. Apple currently sells the following models of the AirPods-branded earbuds and over-ear headphones:

  • $159 AirPods (2nd generation) with Charging Case
  • $199 AirPods (2nd generation) with Wireless Charging Case
  • $249 AirPods Pro
  • $549 AirPods Pro Max

Regardless of what its competitors do, Apple clearly plans on selling its AirPods range for many years to come.

Image Credit: Apple