Apple AirPods Lose Ground in China to Low-Cost AI Headsets

Apple’s AirPods, once the trendsetter in wireless earphones, are now running into the same challenge the iPhone faces in China: price-sensitive competition.

Nearly a decade after their debut, the AirPods inspired a flood of cheaper lookalikes that carved out their own booming market. Today, new data suggests Apple is struggling to capture buyers who are sticking to budget-friendly alternatives.

According to figures from Runto Technology, low-cost ‘AI headsets’ – essentially a rebranded term for wireless earbuds and headphones – dominate the Chinese market

. Products priced below 500 yuan (about $70) now account for more than 60% of sales, a massive jump from just 18.8% in the latter half of 2024. In contrast, Apple’s AirPods, priced well above that threshold, remain outside the reach of many everyday buyers.

The report also shows that mid-range headsets priced between 1,000 and 1,500 yuan ($139–$209) have taken 27% of the market, while premium models over 1,500 yuan capture only 4%. Apple sits firmly in this higher segment, with its most affordable new option, the AirPods 4, listed around $99.99 on Amazon. These entry-level earbuds skip features like Active Noise Cancellation and silicone tips but remain part of Apple’s premium image.

Industry watchers believe Apple has little choice but to avoid the sub-$70 range. Dropping prices further risks damaging the brand’s positioning as a high-quality maker. Instead, the company is expected to double down on adding features to its lineup, with the AirPods Pro 3 likely to be unveiled next month as its next step in defending market share.