Analyst Says Apple AirPods Will See a ‘Surge of Demand’

This year’s best Christmas present may end up being a pair of AirPods from Apple. That is if you already snagged a pair.
Wedbush analyst Dan Ives wrote a note this week that projected Apple could see a shortage in its AirPods due to how popular they are.

According to Apple’s website, a set of AirPods Pro that were ordered on Wednesday would not ship until after Christmas.

According to Ives, Apple could ship 65 million AirPods in 2019, and potentially reach 85 million to 90 million units shipped in 2020.

It was in October that analysts from Morgan Stanley, Bernstein, and Barclays, had indicated that the AirPods sales growth would be a highlight in Apple’s recent financial results.

Apple’s newest model, which cost $249 and are the noise-cancelling AirPods Pro, are poised to be “a clear star of Black Friday and the holiday season,” wrote Ives.

“While AirPods today are on a trajectory to represent ~4%+ of overall revenues, this product category continues to speak to the unparalleled flywheel,” Ives also wrote.

It was also on Wednesday that Nikkei reported that Apple has asked its manufacturing partners to double production of the AirPods Pro to 2 million units per month.

“We also expect price cuts on the older AirPods versions at various retail locations starting on Black Friday and especially on Amazon as we saw price points on AirPods 2 this afternoon were cut down to $134 (vs. the original $159 retail price) and will likely be lower on Friday morning,” Ives added.

Wedbush has a $325 price target on Apple shares and an “outperform” rating.

Disclaimer: We have no position in Apple Inc. (NASDAQ: AAPL) and have not been compensated for this article.