Apple Doubles AirPods Pro Production, Apple AirPods Help Earbuds’ Chinese Manufacturer Become Asia’s Top Stock in 2019

There is no denying that AppleAirPods are winning people's hearts and gaining popularity with each passing day. To retain customers and woo potential buyers, Apple recently updated its AirPods line with the introduction of AirPods Pro. The latest Apple AirPods Pro is by far the most popular wireless earbud that supports active noise cancellation. Launched in October this year, demand for Apple's AirPods Pro has picked up. In a report by the Nikkei Asia Review to meet sky-rocketing demand and confirm more requests for wireless earbuds, Apple now plans to double production of AirPods Pro earphones.

The report quoted sources as saying, "In danger to its general suppliers, Apple has asked Chinese production of AirPods Pro earphones from the little-known LuxShare-ICT to 2 million units per month." It further noted that Apple has asked major suppliers to boost production of "low-cost AirPods, the world's best-selling wireless earbuds". "Nikkei's report comes within days after Bloomberg surpasses expectations of USO 249 AirPods Pro". And the demand for them is pushing Apple's assembly partners against capacity and technical constraints. "

AirPods Pro is in addition to the AirPods line-up and is not a replacement for second-generation AirPods. The new AirPods Pro supports noise cancellation. It has a transparency mode that enables some pass-through of sound. There is a large Apple-designed high-excursion, low-distortion driver, which theoretically should provide even better and wider sound. There are even more sensors inside each earbud for a variety of functionality. Apple AirPods Pro is priced at Rs 24,900 in India.

The LuxShare Precision Industry Company has more than tripled this year, outpacing almost every major stock traded in the Asia Pacific region and underlining the importance of a certain Apple product Chinese company: AirPods. Commanding a 50% share of the Nescent True Wireless earphones market - defined by earbuds that have no wired connection to each other or to a music source - Apple's AirPods, quickly became an important growth driver for the Cupertino, California company went. Bloomberg Intelligence analyst John Butler said that Wearables is Apple's fastest-growing category in 2019, and is filling in as the company's growth driver for the iPhone.

According to Credit Suisse analyst Kyna Wong, AirPods are expected to reach 60 million in 2019, to 90 million in 2020 and 120 million in 2021. Lakshares are the biggest beneficiaries of growth in production demand. This is the fifth-best performance this year in the MSCI Asia Pacific Index and the fourth largest gainer on the MSCI China Index. This year, rival GoerTek has risen by more than 180% on optimism about the strong demand for AirPods.

GF Securities analyst Jeff Pu said, "The annual shipments of AirPods will increase like iPhones in the future." "AirPods are expected to be the biggest earning growth driver among Apple's hardware devices in the coming years."

LuxShare typically produces basic technical accessories and components, such as cables, chargers, and antennas. According to HSBC analyst Frank Hay, AirPods stands out as a high-value item contributing 26% to LuxShare's revenue in 2018. He estimates that it will increase by 50% in 2020. He also notes that LuxShare is the sole supplier of Apple's upgraded AirPods Pro model launched in October, which is estimated to account for 25% of the next AirPods shipment. year.

While LuxShare has grabbed the largest slice of the pie so far, rivals such as GoTTek are constantly upgrading and dying for more business of lucrative AirPods. The company's exclusivity as the sole AirPods Pro supplier is unlikely to be final, and therefore it is not guaranteed to capture all of the expected growth spurts. LuxShare's unprecedented rally also means that it is now trading at a two-year compounded cost-to-income ratio, which is above the sector average of around 24.

Both Wong and he have recently advanced their earnings estimates for LuxShare through 2021, citing rising demand for AirPods and improved selling prices. In a research note from November 18, analysts at Goldman Sachs, including Verna Zeng, agreed, "High ASPs are the major revenue and gross profit contributors to AirPods LuxShares combined with strong market demand from a low base."