Low-end product upgrades, full price distribution of flagship manufacturers, polarization is no longer

The explosive growth of the TWS headset industry in 2019 has led various manufacturers to launch their representative products. It can be seen from the horizontal comparison that each product has certain differences in the performance specifications of the main control chip performance, battery life, size, weight, waterproof, noise reduction, wireless charging and so on. Such as Apple and Sony targeting the high-end market; Huawei and Samsung targeting the mid-range market; and Xiaomi, which focuses on price/performance in the parity market.


From the price point of view, the price distribution of TWS earphones is polarized. Among them, 1000-2000 yuan is the main battlefield of mid-to-high-end brands. In the Q2 China TWS headset market in 2019, this price segment accounts for 55% of sales with 15% of sales. The price segment below 200 yuan is the position of white-brand products. With the rapid development of the TWS headset market, white-label products are developing rapidly. In Q2 2019, products in this price segment accounted for 19% of sales with 63% of sales.

2018Q2-2019Q2 Retail sales volume of China's TWS headset market (unit: thousands)

However, at present, many white-brand company products have only basic functions, and the actual user experience is not good. But its low price can help increase the penetration rate and cultivate user habits. After the early adopters, users will continue to upgrade and choose products with better performance and more value-added services. If many white-brand manufacturers want to build their reputation and long-term development, they still need to improve product quality; otherwise, they will be squeezed out of the market share by leading manufacturers with better comprehensive experience. Under this trend, the market concentration will continue to increase, and the average price of low-end products will gradually increase.


At the same time, there is another development trend in the market, namely the full price segment layout of the flagship leader. In 2019, TWS earphones with more than a thousand yuan still contributed more than half of the sales of the entire market. We believe that this is because TWS earphones were initially introduced to the market as light luxury consumer electronics to target mid-to-high consumer users. However, as the TWS headset market matures and the audience gradually expands, manufacturers need to further cover more target customers. Take Apple as an example, the company may launch entry-level AirPods, actively lower the price, and lay out the middle and low price segments. Therefore, the current product price polarization pattern will gradually loosen, and the intermediate price segment between the two is expected to become the main body of the market.

Post time: 2020-07-31