Squarely aimed at Apple’s Airpod, GN’s wireless earbuds targets a bigger slice of the $9.6 billion wireless market from its current single digit marketshare.
By introducing a new product line that poses a direct challenge to Apple’s Airpods, Denmark’s GN Store Nord appears to be targeting a bigger slice of the growing market for wireless earbuds.
The global market for wireless earbuds is estimated at $9.6 billion and the intensification indicates that both tech companies are keen to increase their market share.
Significantly, GN Store Nord has taken the strategic step of integrating Amazon’s voice control assistant Alexa at half the cost of Apple’s Airpod, which is likely to attract new customers to its userbase.
“We’re expanding our brand to deliver products aiming for a broader segment dominated by Apple,” said René Svendsen-Tune, CEO of GN’s audio division.
Better known for its hearing aid solutions, the Danish companies has in fact worked closely with Apple in the past. It will now put to good use those years of experience and compete with Cupertino for a bigger slice of the wireless earphone market, said Svendsen-Tune.
Interestingly, while GN launched its first wireless earphones in November 2016, Apple played catch up when it launched its Airpods dispensed with the cables, the following month.
Designed keeping the need of athletes in mind, GN’s original earphones features the ability to track progress and measure heart rate and sells for $370 – twice the price point of Apple’s Airpod.
“Apple has helped develop this market with great speed but now we’re launching a new generation,” said Svendsen-Tune, ahead of the launch of the product at the Consumer Electronics Show in Las Vegas.
According to data from the NPD Group, in the first half of 2017, 900,000 wireless headphones were sold in the U.S with Apple accounting for 85% of the sales.
GN has confirmed that it holds a single figure market share and is running in the second place; the market however is still young and the competition, fierce.
“If we can maintain a second place in 2018, I believe we will have done very well,” said Svendsen-Tune.
GN’s audio division accounts for 40% of the company’s revenue, while its hearing aid division contributes the balance 60%.
($1 = 6.1815 Danish crowns)