Bluetooth headphone sales surpass others for first time, with Apple's Beats in top spot

In the U.S., sales of Bluetooth headphones overtook other kinds for the first time in June — with the market led by Apple's Beats division, according to NPD retail data published on Thursday.

During the first six months of the year, Bluetooth models accounted for 54 percent of dollar sales and 17 percent of unit sales, NPD said. Whereas the U.S. headphone market as a whole grew dollar sales 7 percent year-over-year, Bluetooth figures surged 42 percent.

Together, Beats and second-place LG controlled 65 percent of dollar sales in the first half of 2016. Following behind in the top five were Bose, Jaybird, and Skullcandy.

NPD linked the growth of the Bluetooth market to promotions and new products, as well as a lower average sales price, down 5 percent. 30 percent of headphones sold cost $50 or less, versus just 16 percent in 2015.

Bluetooth headphones — particularly those from Beats — have often commanded a high premium. Wireless versions of Beats' Solo2 headphones, for instance, are still $100 extra at $300, and Apple charges a $50 premium for the Bluetooth versions of its Powerbeats2 earbuds.

The segment will probably do even better if Apple drops 3.5mm headphone jacks from this year's iPhones, wrote NPD analyst Ben Arnold. Without those jacks, owners will be forced to use either Lightning or Bluetooth connections for external audio.

21 Comments

Soli 9981 comments · 9 Years

About 8 years ago

Do people still think Apple is losing money on their Beats deal?

lkrupp 10521 comments · 19 Years

Soli said:

Do people still think Apple is losing money on their Beats deal?

I’m sure we’ll hear from the “Bluetooth is shitty” and “Beats is shitty” crowd any minute now, especially the Bose fanboys.

brucemc 1541 comments · 14 Years

Soli said:

Do people still think Apple is losing money on their Beats deal?

Beat (no pun intended) me to it! Between the profit generated from the headphone market, and the ability to get an Apple Music streaming service launched much more quickly than otherwise, with (I expect) much better artist buy-in and exclusives, seems like it was a very good deal.

Lots of innovation still needed in the headphone market as well, that Apple + Beats are well positioned to deliver.

ktappe 824 comments · 16 Years

lkrupp said:

I’m sure we’ll hear from the “Bluetooth is shitty” and “Beats is shitty” crowd any minute now, especially the Bose fanboys.

Bluetooth was shitty for a while. Pairing was hit or miss for years. I've just recently given it another go and devices (and iOS) work a lot better now than before. I wouldn't blame others for being gunshy if they had the same failure experiences I did.

dreyfus2 1069 comments · 17 Years

I went wireless (for mobile use) when I got my Watch. Having a wireless remote on the wrist and the cans on a leash seemed silly. I normally use the Bowers & Wilkins P5 Wireless, but some Jaybird Bluebuds when jogging with the dogs. Both sound great – the P5s clearly better. (I tried the wireless Beats models – to me they sound terrible, but maybe they are made for other styles of music.) I just wish Apple would add aptX support to mobile devices – the sound improvement is undeniable. A possibility for custom EQ settings (maybe even separate ones for different cans) would also be a step up.