The unthought of essentials
Written by: Ryan VanWilligen
With the present day becoming more and more technology heavy almost everyone owns some sort of smartphone. A factor that is often overlooked is that along with smartphones, earbuds, follow closely behind. Apple has provided earbuds with every IPhone purchase since the IPhone 3GS which came out in 2008. Samsung has been providing earbuds with every Galaxy since the Galaxy S which came out in 2010. In this case the earbuds are a positive externality for the customers since they are purchasing such an expensive piece of technology.
All though the total number of earbuds sold between both Apple and Samsung is unknown, with the recent release of Apple’s AirPods, their new wireless headphone, the wireless headphone world has seen a huge shock. Pre AirPod release Apple occupied 0% of the wireless headphone market. Post AirPod release Apple has acquired a whopping 26% of the market surpassing big names such as Bose and Beats.
Speaking of Apple buying out Beats there are a lot of misconceptions about why the purchase was made. As seen in many high schools the amount of people that own beat have gone down a significant amount. Someone may ask themselves “Why would anyone want to purchase a seem to be dying brand like Beats”. The reason that there hasn’t been any major changes with the beats products themselves, ie looks or quality of sound, is because Apple bought Beats for the semi-successful streaming program known as Beats Radio, not for the products. However Apple still did buy Beats as a whole which adds a measly billion dollars annually to the total income of Apple. With Apple seemingly to grow at a constant rate how long will it be before the music listening devices/ music streaming programs market becomes a oligopoly or even a monopoly.
Potuck, Michael, and Michael Potuck @michaelpotuck Michael Is an Editor for 9to5Mac and 9to5Google. Apple’s AirPods and wireless Beats take 40% of all recent Bluetooth headphone sales." 9to5Mac. N.p., 11 Jan. 2017. Web. 16 May 2017.
Wagstaff, Keith. "The $3 Billion Question: Why Did Apple Buy Beats?" NBCNews.com. NBCUniversal News Group, 29 May 2014. Web. 16 May 2017.
"Apple earbuds." Wikipedia. Wikimedia Foundation, 06 May 2017. Web. 16 May 2017.
Wow, I'd never heard about any of this. I didn't even realize that ear buds came with smartphones and the like. It's both interesting and mildly alarming to learn that the sale of ear buds may become a monopoly of sorts, since then there will be no competition for ear buds, thus increasing the possibility of bigger prices. And of course nobody likes the sound of more expensive anything. I wonder then if the demand for ear buds will decrease, if it will stay the same, or if it will increase should the sale of ear buds become a monopoly. I suppose it really depends on the prices, but also new additions and features. Mainly the prices, though.
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I think that the reason for including earbuds with the purchase of a smartphone is because it is likely that the consumer will lose or damage their earbuds before they need a new phone. By prompting consumers to use the original earbuds, it is more likely they will buy new earbuds if their original ones are lost or damaged. This is a clever marketing technique which allows consumers to test the earbuds and then buy another set which increases the company's profit.
ReplyDeleteI think that if all smart phones keep supplying ear buds with the purchase of a new phone, the demand in buying beats, air pods or normal ear buds is going to decrease dramatically more than it already is. Even though it is a positive externally for the consumers I think it will affect all smart phone companies in the future.
ReplyDeleteApple is a predominant supplier of smartphones and new technology. The question whether Apple is an oligopoly or monopoly doesn't have a straight answer; however, Apple's strong presence in the economy allows them to sell products at a high prices because the demand is so great, which is a characteristic of oligopolies and monopolies. More specifically related to earbuds, it’s interesting to really consider the effect of earbuds being included with an iPhone purchase as a positive externality, even though it does not appear to have a negative effect.
ReplyDeleteI heard a while back that apple bought Beats out, but I didn't understand why. It's crazy that apple has controls 26% of the headphone market, when they started off just as a computer company. I agree that apple is sort of turning the music streaming and phone industry into a monopoly. This isn't necessarily a bad thing because apple does a good job of making quality products for the masses, and obviously they have millions of happy consumers.
ReplyDeleteI think that it was smart of apple to please their customers by including a pair of headphones with the purchase of their device. Not only do the customers get introduced to another one of their products, but they get it for free. When their headphones break or they misplace them they can always purchase the same exact kind of headphones that came with their phone in one of their stores. One thing you didn't mention was when they changed their earbuds and the debate of whether or not it was an improvement in comfort. I know that many people bought new smartphones solely so they could try out the new ear buds.
ReplyDeleteI think that is really insane how right when they released the wireless apple earbuds, they very quickly controlled 26% of that industry. I also think that is it crazy that just earbuds have become a monopoly in a way. I don't really think that all of this is a bad thing because it was bound to happen as we all get more and more involved with technology, especially with phones and earbuds. But to see how a company like apple which isn't known for earbuds can easily pass up beats is crazy to think about. Overall great argument
ReplyDeletecell phones are a great way to communicate, but they are in no way an essential for everyone. Al long as people have access to a phone of any kind, they will be able to communicate with those who are far away. Headphones are not a positive externality, but a cost which is added to the cost of the phone to prevent the negative externalize of everyone playing their music aloud. Although smart phones are a great convenience, they cannot be considered a necessity. In any developed country people need food, water, safe housing and communication, but this does not mean they need a smartphone.
ReplyDeleteI do find i shocking to see how greatly Apple is starting to grow more and more it also doesn't surprise me how big they are now. As you ave stated, they bought out Beats to increase their revenue which in a way seems a little uncalled for. Apple is one of the largest companies out there and possible the largest in it's field but considering that Apple is 30 plus years old you can just imagine the amount of revenue it has brought in throughout it's lifetime. In way I also feel that if anyone were to be able to put Beats to use and bring it back to life, since they are a dying company, it would be Apple.
ReplyDeleteIt is impressive that Apple was able to control so much of the wireless headphone market. 0% to 26% is an extreme jump that shows what a big name like Apple can do to seemingly any market they want. Could an Apple shoe come out and dominate the market? Probably not, but it will be interesting to see how the wireless headphone market develops especially if smartphone companies continue to supply and develop quality ear buds with their phones.
ReplyDeleteI think it is super interesting how much technology controls our lives day to day and without it we probably wouldn't know what to do. Looking at it from the perspective of wireless earbuds brings in a new point to describe how it effects our economy. 0-26% is a huge leap and it will be interesting to see what happens in the future for technology and how it will dominate our lives then and the influence it will have on our economy.
ReplyDeleteIt's really impressive that during the post launch of the Apple Airbuds that they shot up to 26%, when during the pre launch it was sitting rock bottom at 0%. It's also very impressive that with each apple device sold, the customer gets free earbuds, which is quite intriguing because they must ave a large stock of earbuds in order to hand them out for free to apple customers.
ReplyDeleteIt's really impressive that during the post launch of the Apple Airbuds that they shot up to 26%, when during the pre launch it was sitting rock bottom at 0%. It's also very impressive that with each apple device sold, the customer gets free earbuds, which is quite intriguing because they must ave a large stock of earbuds in order to hand them out for free to apple customers.
ReplyDeleteReading that Apple bought out the entire Beats company, practically just for the Beats radio, is really interesting because they thought through their opportunity costs. Although Beats sales are decreasing, Apple can still make money off of the radio and then create their own, better earbuds that will make them millions. It will be interesting to see whether they will expand on wireless products and how popular they will be in the future.
ReplyDeleteAfter reading this post I learned a lot more about Apple. I didn't realize that once they started selling their wireless headphones, that they dominated the market. Actually I never realized how much of a market there was for wireless headphones, after analyzing the picture. I feel like Apple is dominating a lot of markets which surprises me because there are other good brands out there for technology. I hope that this doesn't turn into oligopoly or monopoly.
ReplyDeleteI think the non headphone jack in he new iphones is dumb for the customer it was another great way for apple to create more revenue. Just like when the changed the charging port and everyone had to buy new chargers. Now people need the adapter so they can play music. It makes since that after the headphones that it shot up 26%. Although I dont like it, it was smart for apple.
ReplyDeleteIt is very interesting to see the affects of technologies on day to day lives. The effect that Apple is having on the headphone market is astronomical, and it is insane that the market share of the airbuds was up to 26%, and shows a concerning amount of growth by one tech conglomerate.
ReplyDeleteI found interest in this post because I listen to music every day and it is insane how earbuds make smartphones much more appealing when they are included. I also thought it was interesting how Apple purchased Beats for the sole purpose of taking control of Beats Radio. The opportunity cost of purchasing this company is that it is a dying brand, but the marginal benefits are much greater through the popular Beats Radio. I would like to know the boost in revenue that Apple acquired from this move.
ReplyDeleteApple is a very successful company and that is a fact. Not only are they dominating all realms of the economy but they are coming up with more and more products that satisfy different consumers. Something that I picked up on in your blog post is that products such as Beats may not be as popular anymore to consumers because of the new products that are being released. I would have to disagree on this. I personally have Beats and think they are amazing especially for music lovers! Although that is simply an opinion I think what makes Apple so successful is their variety of products that keeps them on the market eternally that continues to better the economy.
ReplyDeleteWhen Apple created a dual charging and headphone jack, their overall revenue increased. With the new iPhone, they include the complimentary headphones and the jack. However, this change forced the customer to decide between charging to listen to music. This decision lead to the drastic jump from 0% to 26% of dominating the wireless industry so quickly. After buying out Beats, Apple's supply for headphones that function with their new phones was a obviously a popular demand. It will be interesting to see where Apple goes from here with wireless features and how Beats will help with product addition.
ReplyDeleteit's interesting to see the amount of money that people pay for technology today. It's crazy to see how much one company can affect the economy with a certain product, in this case wireless headphone and earbuds. The thought that they raised to 26% after the release. It will be interesting to see what apple does next and how it will affect our economy
ReplyDeleteI didn't realize that earbuds had such competition or that they had that much impact on the market. I think new changes like the AirPod are great, but they also turn people away when they don't have a separate charging port. I think Apple needs to think things like that through just a little more, BUT I think they are making amazing choices with product diversity which is a really positive externality for consumers. They can choose from a variety of products and benefit in a way that fits their lifestyle This diversity could soon make them a Monopoly in their product line.I'm excited to see what other products Apple can make and where this will take them in the future.
ReplyDeleteI never relive that iphone where one of the only ones who gave headphones with there phones. Also did not realize that other phone have tried to follow. I can see there the monopoly of listening devices is coming in even though other phone try to compete with google play but itunes is the biggest music holder
ReplyDeleteAlthough Beats sales are decreasing, I still feel that the purchase of Beats is going to overall provide Apple with a positive impact. It’s clear that this was not an impulsive decision and that Apple believed it would benefit them in the long run. Going from 0% to 26% of the wireless headphones market is a huge leap and it would not be a surprise if this percentage continued to increase. It is currently not very clear if Apple is a monopoly or oligopoly, however it is seeming as though they are turning into a monopoly in certain industries.
ReplyDeleteIt's crazy how large a market that's heavily overlooked and taken for granted by the public can be. It's also crazy to think how reliant society has become on technology, even though it's was popularized relatively recently, that there's such a large market for an subclass of an accessory of a popular item. While these levels of growth are certainly exciting, as they're likely to lead to more advanced technologies, it's also scary how much of the market Apple is eating up.
ReplyDeleteI agree, beats sales are lower, but remember they are still owned by the same company. Besides apple as a brand, beats are the second biggest competitor out there. Not to mention if apple owns both then they pretty much own at least half of the market. Which for such a competitive market is quite an achievement. In addition, we are in a time of technological advancement, wired headphones are on the way out and wireless are coming in. Beats sales will go back up in time.
ReplyDeleteI think it is smart of Apple to include headphones with their devices, because it adds a draw to the devices, it is also really good advertising for their headphone products. When they switched the jack for the headphones a lot of people were torn on if they liked it or not, but overall I think most people warmed up to the idea of it. The biggest flaw was making the user decide if they want to charge or listen to music. Either way, I think it was smart that they include them with the purchase because it made people more interested in getting the new phone, because of the change in headphones which helped sales a lot. I think the change in headphone jack and including headphones with the purchase are very smart marketing strategies, because it drew so much news attention and it set them apart from other companies.
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ReplyDeleteCharging extra for earbuds would most likely lead to less people buying the phones because for many people music is one of the top reasons for buying a smart phone. Apple saw what their target audience wanted and provided that good because there was a high demand for music and ways to listen to that music. Additionally, beats already has such a hardcore audience because there are countless advertisements with celebrities like Lebron James and Serena Willams wearing beats that everyone knows the name. They just bought the beats name and even though the headphones aren't the best quality, people are still willing to buy them because of the great marketing and trust in the company.
ReplyDeleteSince Apple bought out Beats, there have been a lot of updates with the new Apple phones. A lot of the old beats can not even purchased with the new IPhone 7 because of the jack. This might explain why there is a decrease in demand for the beats. The other thing is, beats are nice quality and everything, but are you going to go in public wearing huge headphones over your ears? Some people like to simply have earbuds in so it is a little more discreet. It was definitely smart for Apple to buy out Beats, but now the demand isn't very high because Apple has so many other cool features and products being created.
ReplyDeleteBeats somehow are still popular and simply because the brand name Beats, and with that comes a positive externality for Apple. In addition, Beats were a growing company upon their purchase from Apple, so their choice in purchasing them was thought out nonetheless. Upon releasing the new Airpods, a jump to 26% simply can't go unnoticed, and does make one wonder what is in store for the industry moving forward. In reality I see no monopolistic future for the music-tech industry of headphones and earbuds, simply because Apple is not the best, and their are a wide array of better options that are actually more affordable, and their are better more expensive options that outdo Apples. Sony and Sennheiser are great examples of this, and a full market of options is prevalent each year with new releases and companies.
ReplyDeleteApple and Samsung adding earbuds with the purchase of their smartphones isn't a surprise to me. These days--especially the younger generation we're in--people are constantly using some sort of earbuds or headphones. I know I use them every opportunity I get. As for Beats, I don't think people or the sale of them is going down. Just because you don't see people in public with them doesn't mean they aren't being used. I own a pair of Beats, but I would never dare bring them to school because they were extremely expensive and I don't want them to get destroyed. Why I use earbuds at school because not only are easier to carry around but much less expensive if something were to happen to them. Earbuds and headphones are things everyone uses so much these days, so the fact these mobile companies are incorporating them into the sales of their products is no surprise to me. It's a pretty smart business move if you think about it, because someone is more likely to buy the phone with free earbuds/headphones than the one without.
ReplyDeleteEarbuds, who would have though something so small could make such a huge impact on the economy. Obviously everyone knows about the big companies making a difference but for a company giving free earbuds with phone purchase to start a huge trend. For the last few years I've seen technology shoot off like a rocket everything is in high demand and people come out with new gadgets way more often. In school I have seen just plain earbuds, then beats were huge, not it's wireless this wireless that and speakers. This is a cool topic because it bring information out that people other wise would just look past or not notice, like the fact apple bought out beats, that's crazy I would have never know. Great Topic.
ReplyDeleteIt is very interesting to hear that what seemly was a nice gesture of giving ear buds with the phone, is actually under cutting different company like beats. It is also very alarming to hear the earbuds could potentially become an oligopoly. If this were the case, the price of ear buds would increase but the supply of them would remain the same. With the purchase of beat, apply is controlling an alarming amount of the market. I think it would be interesting to see a graph of apply's revenue from ear bud sales before and after the purchase of Beats.
ReplyDeleteI agree that the Apple company has now become the top contender in the oligopoly of the newest technology, especially concerning smartphones, at this time. While it seems that in most people's eyes they can do no wrong that will have a decrease in demand for their products, the other companies in similar areas are not so far behind. When the new iphone 7 came out there was a bunch of complaints about not having an audio jack for earbuds and the design of their wireless headphones where odd, which led to the new phone to have sold less in its first weekend that the iphone 6 did. Not to mention that Apple is more concerned on making their phones and other products be as small and cool looking as possible, while Samsung on the other hand listened to their user's complaints and made the battery, therefore the phone, bigger which shows more loyalty toward the consumers. I would not be surprised if Apple became the only producer in new and futuristic technology, but it's going to hit a few bumps before it gets there.
ReplyDeleteIt is quite surprising that Apple has a 26% increase in wireless headphones since joining the market not too long ago. All over social media, it seems as though they were mocking the headphones. Personally, I wouldn't buy them, same as most people, because they seem to be easy to lose. There seems to be a growth in the wireless headphones, and it will most likely be a huge growth in the wireless headphones. Eventually, there is a possibility that the wired headphones will go away, and wireless headphones will take over the headphones industry. You only wonder what other new thing is going to replace the wireless headphones.
ReplyDeleteIt is crazy to think that Apple can jump from having 0% to 26% of the wireless headphone market. With the most recent release of the Iphone 7 with no separate headphone adapter really pushed Apple in a new direction. This made customers think about all the opportunity costs of purchasing a new set of wireless headphones or have to choose between charging your phone and listening to music. It's crazy Apple influenced so many new users to buy these new wireless headphones just so they could listen to music while charging their phone.
ReplyDeleteIt seems insane to see that Apple can jump from 0-26 percent of the wireless headphone market, but at the same time it's not that surprising since the i-phone 7 didn't have a headphone jack so people were forced to buy bluetooth headphones and air pods is an easy way to go.
ReplyDeleteApple is one of the most well known companies in the world when it comes to technology. It was interesting to read about the earphones that come with phones because no one really has acknowledged them until Apple took out the headphone jack. I would have to disagree with Beats not being as popular anymore because I think people still want the best quality headphones. Also since headphones have become more wireless orientated, Beats has followed that trend and made options of wireless beats.
ReplyDeleteHaving Apple include headphones with your new iPhone was a smart decision on their part because after the earphone jack was removed on the newer phones many were worried about how they would listen to music and were hesitant to buy the new iPhone. But with the inclusion of such a seemingly small object, it boosted the sales of the new iPhone.
ReplyDeleteApple continues to make move after move, and they keep paying off time and time again. I don't think people truly realized or acknowledge Iphones coming with the headphones until they combined the audio and charging port. I also think it was a smart move to incorporate the air pods, because instead of choosing between charging your phone and listening to music you can purchase the accessories like the wireless headphones so you can do both at the same time. Once again creating more revenue for the company.
ReplyDeleteThere is no denying that music has become an important part of many people's lives. Though I don't personally go out of my way to listen to music, I know of countless others who need to listen to music as much as they need to breathe air. Since music is such a big industry with such a large amount of people either involved in it or supporting it in this manner, it comes as no shock that big-time phone providers like Apple and Samsung have provided earbuds with their phones for years. After all, a great deal of people buy smartphones for their music capabilities, and you can't listen to music without earbuds.
ReplyDeleteI don't agree with the statement of Beats popularity dying down. Obviously people aren't buying as many headphones because they were so popular that everyone had to have a pair of Beats headphones. There are still a lot of people using Beats products. Apple had gain a significant amount of money when they took out the phone jack from their headphones because people just had to have the new headphones. It helped the revenue when they didn't give the headphones for free. People had to make another purchase to try out the new Apple products. It also could benefit from people getting worried about if they will be able to listen to their music which made people feel they were being forced to but this new iPhone. In the end removing the phone jacks from headphones had increased the sales and revenues of the Apple company.
ReplyDeleteIt is not surprising to see that when Apple released it's ear pods it took over most of the market probably because Apple is such a big name and most people have Apple devices. There are always more than one company competing for a product and they try to make it the best they can and keep coming up with new inventions of a product. That is why I think Beats is sliding away because people get tired of them and to stay in trend they have to eep coming out with new products more often to keep their business going.
ReplyDeleteI have always liked Apple as a company and I also love their products. I don't find it surprising that Apple bought out Beats as they are a large company who are always looking to grow and improve. I don't know if they will cause a monopoly but I definitely think that other companies are in threat.
ReplyDeleteI am currently and always have been a Samsung owner but I do have to admit, I respect everything that Apple has done. They are truly a powerhouse of a business, and this addition of Beats is just going to solidify that. I thought it was pretty crazy how much the addition of the AirPods took the headphone market by storm, passing the big headphone companies. Many companies will probably follow Apple and make a similar wireless earbud.
ReplyDeleteI feel like Apple has done a great job of building their brand for the past 10 years. Even though their technologies may not be the newest of the new, they make their consumers think that they are very high tech because they bought one of their products. Their marketing strategy has been very interesting to watch over the last couple years, as they transition from one year to the next. Their competition with Samsung is something that should be ongoing for years to come and is something to keep your eye on.
ReplyDeleteIt is safe to say that Apple is a trend-setting company. With the release of their newest iPhones and the no-earphone-jack style that they have now, Apple has brought in so much revenue for themselves and for other companies that sell wireless headphones. If Apple hadn't had added this feature to their phones, the wireless headphone industry would remain the same. But since Apple is such an incredibly large company, changing their one product to adapt to another product's market has been a positive externality for the wireless headphone market and helped increase this market's demand. Even though some iPhone users see the new no-earphone-jack style as inconvenient, they neglect to think about the millions that this renovation is adding to the wireless headphone market.
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