March 7, 2018
Apple Turns Up Audio Ambition With High-End Headphones 0
Apple Inc.’s AirPods earphones have been a surprise hit. Now, the company is planning a push into the high end of the market.
The Cupertino, California-based technology giant is working on noise-canceling, over-ear headphones that rival headsets from market leaders like Bose and even the company’s own Beats by Dre brand, according to people familiar with the product’s development. The company plans to launch the headphones as early as the end of this year, but has faced development challenges that might push back the release, the people said.
Work on the Apple headset has been on-and-off over the past year. The company encountered similar problems with the HomePod during its development, including multiple redesigns, according to the people. It’s possible Apple will redesign the headphones again before launch, or scrap the project altogether, they warned, asking not to be identified discussing private development work.
An Apple spokesman declined to comment.
The latest plans call for headphones targeting the high-end of the market, replicating Apple’s approach with the $349 HomePod speaker, released earlier this year. In addition to noise-canceling capabilities, Apple plans to include similar wireless pairing functionality to the AirPods, according to the people familiar with the product’s development.
This would be the latest in a long line of music-focused products and services from Apple. The iPod and the iTunes Store revolutionized how music was consumed — as digital downloads rather than physical CDs. The company’s largest ever acquisition was the $3 billion purchase of Beats in 2014 — a deal that got Apple into high-end headphones and music streaming. The HomePod’s sound won glowing reviews this year and Apple is already preparing other audio accessories like upgrades to AirPods that add water-resistance and a new wireless chip that enables “Hey Siri” voice activation.
So far, the AirPods have been a key driver of newfound success for Apple’s Other Products segment. The category, which includes AirPods, Beats headphones, the Apple Watch, Apple TV and iPad accessories, generated more than $5 billion in revenue for the first time in the company’s fiscal first quarter, representing 36 percent year-over-year growth. Within that category, wearable product sales, which include the Watch, AirPods, and Beats headphones, surged 70 percent last year, Apple said on a recent earnings call.
Inventec Corp., the Apple manufacturing partner that builds HomePod speakers and AirPods earphones, may miss out because Apple is likely to work with a different supplier, the people said. Primax Electronics Ltd. and Shin Zu Shing Co., current Apple suppliers, are likely to partner with Apple on the new headphones, KGI Securities analyst Ming-Chi Kuo wrote.
Apple's Other Sales Boom
Other Products category is Apple's fastest growing division thanks to devices like AirPods
Note: Other Products include AirPods, Apple TV, Apple Watch, Beats headphones, accessories.
When the company acquired Beats Music and Beats Electronics in the 2014 deal, Apple executives said the successful Beats by Dre headphones business was one of the drivers.
Apple-branded headphones would seemingly cannibalize Beats headphones, although Beats also sells lower-priced wireless headphones that probably won’t directly compete with the new product. Athlete-oriented wireless Beats earphones still seem to be selling well despite the popularity of AirPods.
Apple previously discarded the Beats Music streaming name when it launched Apple Music in 2015. However, given the strength of the Beats headphone name, the company will likely keep that brand while developing a different new one for the new headphones.
Beats, Bose, Sennheiser, Sony and Skullcandy are the leading players in a headphone market that will generate $20 billion in annual revenue by 2023, nearly doubling this year’s projected sales, according to Research and Markets. Researcher NPD Group said last year that sales of AirPods and Beats headphones gave Apple 27 percent of the wireless headphone market and almost half the dollars spent on the category.
Pricing will be key for the new Apple headphones. The HomePod is priced more than $100 higher than its main voice-activated competition from Sonos, and $200 more than an Amazon Echo, but $50 less than a competing Google Home Max. Beats and Bose both charge $350 for their high-end wireless headphones, while Sennheiser prices range from $100 all the way to $500.
Apple’s cost for each $349 HomePod is $216, resulting in thinner profit margins than typical Apple hardware products, according to TechInsights. AirPods have been tricky to assemble and use unusual design tricks, likely making them expensive to produce. The Apple headphones will likely use similar audio technology, driving up costs.
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April 18, 2018
A Timeline of the Tesla Autopilot Crash Investigation 0
by MeDaryl • Cars • Tags: apple inc, business, california, Elon Reeve Musk, family, hyperdrive, Mountain View, NATIONAL HIGHWAY TRAFFIC SAF, National Transportation Safety Board, Robert L Sumwalt, TESLA INC, TWITTER INC
March 23: Walter Huang, a 38-year-old Apple Inc. engineer, dies after his Model X crashes into highway barrier in Mountain View, California.
March 27: The NTSB sends two investigators to the crash scene and notes on Twitter: “Unclear if automated control system was active at time of crash.”
March 27: Tesla releases its first blog post, “What We Know About Last Week's Accident,” saying it hasn’t been able to retrieve computer logs from Huang’s vehicle and blames the damaged highway safety barrier for the severity of the crash. Tesla also claims the U.S. government found a year ago that Autopilot reduced crash rates by 40 percent, a characterization of data from a National Highway Traffic Safety Administration report that some safety experts call misleading. “Out of respect for the privacy of our customer and his family, we do not plan to share any additional details until we conclude the investigation,” Tesla writes.
March 30: Tesla releases a second blog post late on Friday night that acknowledges its driver-assistance software, Autopilot, had been engaged at the time of the crash. “The driver had received several visual and one audible hands-on warning earlier in the drive and the driver’s hands were not detected on the wheel for six seconds prior to the collision,” Tesla writes.
April 1: An NTSB spokesman tells reporters that the agency is “unhappy with the release of investigative information by Tesla.” The agency’s protocols require companies who are a party to an agency accident investigation to not release details about the incident to the public without NTSB's approval.
April 2: Tesla CEO Elon Musk discusses the investigation on Twitter:
April 9: NTSB discloses agency Chairman Robert Sumwalt spoke to Musk over the preceding weekend. An agency spokesman said Sumwalt described the conversation as “very constructive.”
April 10: Tesla puts out a statement that faults Mr. Huang and denies moral or legal liability for the crash.
April 11: Tesla says it has withdrawn from its party agreement with the NTSB: “We believe in transparency, so an agreement that prevents public release of information for over a year is unacceptable.”
April 12: NTSB releases a statement saying it had removed Tesla as a party to its crash investigation. “The NTSB took this action because Tesla violated the party agreement by releasing investigative information before it was vetted and confirmed by the NTSB.” The agency also releases a letter from its chairman to Musk.
April 12: Tesla releases another statement, again claiming to have withdrawn from its agreement with the NTSB.
Read more: https://www.bloomberg.com/news/articles/2018-04-12/a-timeline-of-the-tesla-autopilot-crash-investigation