Bluetooth headphone sales surpass others for first time, with Apple's Beats in top spot
In the U.S., sales of Bluetooth headphones overtook other kinds for the first time in June -- with the market led by Apple's Beats division, according to NPD retail data published on Thursday.
During the first six months of the year, Bluetooth models accounted for 54 percent of dollar sales and 17 percent of unit sales, NPD said. Whereas the U.S. headphone market as a whole grew dollar sales 7 percent year-over-year, Bluetooth figures surged 42 percent.
Together, Beats and second-place LG controlled 65 percent of dollar sales in the first half of 2016. Following behind in the top five were Bose, Jaybird, and Skullcandy.
NPD linked the growth of the Bluetooth market to promotions and new products, as well as a lower average sales price, down 5 percent. 30 percent of headphones sold cost $50 or less, versus just 16 percent in 2015.
Bluetooth headphones -- particularly those from Beats -- have often commanded a high premium. Wireless versions of Beats' Solo2 headphones, for instance, are still $100 extra at $300, and Apple charges a $50 premium for the Bluetooth versions of its Powerbeats2 earbuds.
The segment will probably do even better if Apple drops 3.5mm headphone jacks from this year's iPhones, wrote NPD analyst Ben Arnold. Without those jacks, owners will be forced to use either Lightning or Bluetooth connections for external audio.
During the first six months of the year, Bluetooth models accounted for 54 percent of dollar sales and 17 percent of unit sales, NPD said. Whereas the U.S. headphone market as a whole grew dollar sales 7 percent year-over-year, Bluetooth figures surged 42 percent.
Together, Beats and second-place LG controlled 65 percent of dollar sales in the first half of 2016. Following behind in the top five were Bose, Jaybird, and Skullcandy.
NPD linked the growth of the Bluetooth market to promotions and new products, as well as a lower average sales price, down 5 percent. 30 percent of headphones sold cost $50 or less, versus just 16 percent in 2015.
Bluetooth headphones -- particularly those from Beats -- have often commanded a high premium. Wireless versions of Beats' Solo2 headphones, for instance, are still $100 extra at $300, and Apple charges a $50 premium for the Bluetooth versions of its Powerbeats2 earbuds.
The segment will probably do even better if Apple drops 3.5mm headphone jacks from this year's iPhones, wrote NPD analyst Ben Arnold. Without those jacks, owners will be forced to use either Lightning or Bluetooth connections for external audio.
Comments
Lots of innovation still needed in the headphone market as well, that Apple + Beats are well positioned to deliver.
Well, I recently spent an extended time in the Apple Store, auditioning the Bluetooth Beats Studio headphones, again with my own music, and I was highly impressed with the quality of the sound. I suspect that Apple's infusion of cash helped with improving quality, whether it is in design, and choice of materials or components.
They are definitely on my short list of Bluetooth headphones when the time comes. And right now, if you buy a new Mac or iPad, you'll get a free pair of Beats Bluetooth headphones!
It's all in the ears of the listener.
I fell into the category of "Beats sounded shitty" at one time. Until I got the BSW.
lIt most certainly deserves to be in your short list.
I don't think it supports or hurts Apple's case for removing the headphone jack from the iPhone.
But because of that the overall $ volume for wired has dropped over the past couple of years. I don't think they're selling fewer of them, just for less money. Of course it does help that there's a least a few bluetooth headphones that can compete with the better wired ones according to reviewers. That's a fairly recent development as far as I know.
I said if Apple dropped the 3.5mm jack it would be easy for them to speed up Bluetooth and lightning adoption with the power of Beats. This would
make the Beats acquisition even more valuable than it already is.
Note: I still do not agree with dropping the jack(audiophiles understand) but the thought of lightning to 3.5mm connectors have eased my concerns.
Name a single Apple product that has dropped the headphone jack. Otherwise you're just spreading rumors like tech blogs do.
Its not clear to say which it is, its probably both, but I myself thinks its the rumors atleast ~60% of the time. Who wants to shell out 100-200 bucks on something that is useless with their next phone
PS: Despite it's young age the company has an interesting history. First being assisted by Monster Cable Products Inc.—yeah, those scumbags with overpriced cables—for manufacturing (and possibly distribution connections), and then being mostly owned by HTC, who then reduced their ownership by about half, and then sold it all off in a span of about 3 years, having made a very minor profit (I really don't get what HTC was thinking). With Iovine and Dre being involved, and then Apple paying about 5–6x what HTC paid in 2010, when you adjust for owning the whole company, and paying 7.5x more than Apple's largest and most historic acquisition of NeXT, and all within a fairly short timeframe, it's an interesting story to be sure.