As AirPods 3 Demand Stutters, Could Apple Discontinue AirPods Pro?

Apple, Inc.'s AAPL experiential learning with the AirPods 3 has made the company cautious regarding the launch of the upcoming AirPods Pro 2

What Happened: Apple may discontinue the AirPods Pro after it launches the AirPods Pro 2 in the second half of 2022, Apple analyst Ming-Chi Kuo said on Twitter.

Such a step could be taken to avoid the mistake the company committed with regard to the base version of its AirPods, he added.

Apple unveiled the new AirPods 3 at the "Unleashed" event held in mid-October.

The analyst noted that AirPods 3 orders for the third quarter has been cut by over 30%. Demand for AirPods 3 is significantly weaker than the demand for the earlier iteration, namely the AirPods 2. The weak demand is attributable to Cupertino's failed product segmentation strategy, he added.

Kuo also said this should serve as a "wakeup" call for AirPods. The analyst noted that consumers aren't willing to shell out an extra $50 for the new price point of AirPods 3. At best, AirPods could be priced only at $249 without additional innovative features, the analyst added.

At last check, Apple shares were slipping 1.80% to $175.23.

Related Link: Here's How The Economics Of Hardware Subscription Can Boost Revenue For Apple