True wireless devices lift stagnating audio segment

Global true wireless stereo (TWS) shipments continued their positive trend in the first quarter of 2022, reaching a total of 68.2 million units, according to a report released this week by technology analysts Canalys.

Since the third quarter of 2021, the true wireless stereo is the only category in the smart personal audio market that continues to grow, resulting in the segment experiencing an expansion of 4 per cent.

True wireless stereo devices exclusively rely on Bluetooth technology to establish a connection, both between the headphones or earbuds to the source of the audio, but also between the earbuds themselves.

In this context, other Bluetooth headphones whose earbuds or speakers are connected with a band, such as in the case of gym headphones, do not fall under the true wireless stereo category.

Based on the data by Canalys, Apple, Samsung and Xiaomi continued to claim the three top spots in this product category.

However, of the three leaders, only Apple managed to further increase its sales, with shipments rising by 14 per cent quarter-on-quarter.

The AirPods product line alone was responsible for 19.3 unit sales, growing 3 per cent from the previous quarter.

That being said, the above three vendors all lost market share, with Edifier and Skullcandy, the other two vendors in the top five, gaining market share from the previous quarter.

“Vendors are using audio names with strong brand equity in sound to expand their total addressable markets,” Canalys principal analyst Jason Low said.

“Unlike Apple’s AirPods and Samsung’s Galaxy Buds ranges, devices from sub-brands can depart from the vendors’ core design philosophy and develop their own unique styles and niches,” he added.

Low also explained that options for variety and customisation are crucial elements in a market where product design and product features tend to end up being quite similar.

“Players such as Skullcandy, Edifier and JBL attained greater scale after doubling down on the sub-US$50 segment, contributing to the ASP decline,” research analyst Sherry Jin said.

“But highly commoditised items, such as budget TWS devices, are likely to bear the brunt of rising costs and inflation,” Jin added, explaining that “the uncertain global market outlook will hamper consumer confidence and weaken demand”.