The global smart personal audio market experienced a decline in shipments in the third quarter of 2023, with developed regions struggling while emerging regions showed strong growth. Despite this decline, Apple maintained its leadership position in the market. According to Canalys’ research, global smart personal audio shipments fell by 3% year-on-year to 110 million units in Q3 2023. Developed regions, such as North America and Western Europe, experienced a decline of 12% and 10% respectively, while emerging regions showed double-digit growth. True wireless stereo (TWS) devices accounted for 73% of shipments, as they continued to penetrate affordable mass-market segments. Shipments of wireless headphones surpassed those of wireless earphones for the first time, driven by vendors seeking stronger revenue drivers.
Apple accounted for 21% of the market share, with sales of 23.4 million units in Q3 2023. This represented a 7% decline compared to the same period in 2022 when Apple held a 22% market share. Apple’s popular products, including AirPods, AirPods Pro, and AirPods Max, contributed to its market dominance.
The decline in shipments in Q3 2023 can be attributed to various factors. Vendors strategically decided to skip yearly flagship releases, extending refresh cycles and prioritising premium models. Additionally, the mid-range segment experienced a decline due to a lack of clear value-for-money offerings. However, Canalys analysts expect growth to return in Q4, driven by replenishing inventories and holiday shopping season deals.
Looking ahead to 2024, feature-based innovation is expected to boost shipments in the smart personal audio market. Vendors will focus on increasing device capabilities, such as spatial audio, hearing enhancements, and Bluetooth LE, to match product developments from their competitors. Improving economic conditions and expected flagship portfolio launches from Apple and Samsung are also anticipated to further boost the market. Canalys estimates that total shipments for 2024 will be 3.3% higher than in 2023.
RTM Watch’s Take
The global smart personal audio market’s decline in Q3 2023 reflects the challenges faced by developed regions, while emerging regions continue to show promising growth. Apple’s leadership position, despite a slight decline in market share, highlights the strong demand for its products. As the market rebounds in Q4 and beyond, vendors will need to focus on innovation and differentiation to capture consumer interest. The increasing emphasis on feature-based enhancements and the introduction of new technologies will shape the future of the smart personal audio industry.
