Apple AirPods craze spreads to China, becoming music to the ears of wireless-headset stock investors
- AirPods supplier Luxshare Precision Industry is up more than 200 per cent this year
- Wireless headset sector is seen as a huge new market
Apple AirPods’ runaway popularity is boosting wireless headset and part makers in China – and investors should be listening, analysts say.
The wireless earphones are Apple’s second fastest selling product of all time, only behind the iPhone. Now its more expensive AirPods Pro – which include such features as noise cancellation – is a hot seller, too. The stampede into so-called true wireless stereo (TWS) earbuds is in its early stage, analysts say, as consumers ditch their old wires for the cooler look and improved sound.
“True wireless stereo will become the next big thing in consumer electronics,” Zhongtai Securities analysts wrote in a new report. It will become the next product that could “create a growth miracle” after the smartphones, which have experienced what seems like a topping-out in output after years of rapid growth.
Chinese companies like Luxshare Precision Industry, the main assembler of AirPods – are benefiting. It’s up more than 200 per cent this year.
Meanwhile, GoerTek, which like Luxshare supplies to both Apple and Huawei, is up 193 per cent this year, bringing good fortune to investors like Eric Fei, a 27-year-old part-time stock trader living in northern China’s Tianjin city.
