An in-depth look at Apple’s strategy in 2020.

A recent report by Ming-Chi Kuo, a trusted source on Apple leaks, suggests that Apple will not include EarPods (the company's wired earphones) in the packaging for the upcoming iPhone 12. But is this a necessary change for Apple?

Many are familiar with Apple's trend of eliminating features from their flagship devices annually. Let's take a moment to review their history of such decisions.

Apple’s history of removing/replacing features

In 2016, Apple initiated a trend by eliminating the 3.5 mm headphone jack from the iPhone 7. They argued that the headphone jack was outdated and unnecessary. The introduction of AirPods, a new line of true-wireless earphones, was a significant factor in this move, ultimately boosting Apple's sales. AirPods quickly became one of the top-selling true-wireless earphones globally, despite their $159 price.

In 2017, Apple launched the iPhone X, claiming it represented the future of smartphones with its edge-to-edge display and minimal notch. This innovative design required the removal of the Touch ID fingerprint scanner in favor of a new facial recognition feature called Face ID. This change sparked controversy, as many found Face ID slower to use compared to the instant unlocking of Touch ID, with some questioning its security despite Apple's assurances.

With the release of the iPhone Xs and Xr in 2018, Apple once again omitted a feature: the lightning to headphone jack adapter. For some users, this was not a major issue since they could still use the included EarPods with an adapter, but those reliant on headphone jack accessories were less pleased.

The iPhone 11 and 11 Pro faced criticism for removing a key feature: 3D Touch. This technology, introduced with the iPhone 6s and available up to the iPhone Xs, detected pressure on the screen for quick actions and multitasking. It was replaced by Haptic Touch, which relies on long-press gestures instead of pressure sensitivity. Many users found this transition disappointing, as Haptic Touch was perceived to be slower.

So what will happen in 2020?

As we approach the anticipated September launch of the 2020 iPhones, is it true that Apple will eliminate the included EarPods?

If this change is confirmed, what are the reasons behind it?

AirPods. This is similar to the rationale behind the removal of the headphone jack with the iPhone 7.

Reports indicate that this decision aims to enhance AirPods sales. Since their launch, AirPods sales have skyrocketed from 15 million units in 2016 to 60 million in 2019, partly due to the introduction of AirPods Pro. Together, the basic and Pro models generated approximately $12 billion in revenue for Apple in 2019, contributing nearly 2% of the company's total earnings.

Kuo also predicts that Apple will unveil a new, more affordable version of AirPods Pro, aiming for a broader customer base. He estimates that Apple might sell 80 million pairs in 2020, projecting revenue to reach $13 billion—just $6 billion shy of the iPad’s total revenue of $19 billion.

This ambitious strategy is not unprecedented. Google previously removed the earphones and adapter from the Pixel 4 package, a move that faced backlash due to the phone's high price and the omission of a basic accessory. They also launched the Pixel Buds, but these did not match AirPods in sales and popularity.

If Google struggled with this strategy, can Apple succeed this year? While the outcome remains uncertain until the iPhone 12 launch, many believe that Apple's efforts will be more fruitful than Google's. The reasoning lies in the more developed market and stronger reputation of AirPods compared to Pixel Buds, as evidenced by their impressive sales figures.

This explanation seems logical, but there's more to consider.

With the prevalence of audio accessories, both wired and wireless, the potential removal of EarPods may generate less controversy than it did in 2016. Additionally, rumors suggest that Apple might introduce the iPhone 12 at a lower starting price of $649, featuring a new design, OLED display, and more—cheaper than the current iPhone 11 priced at $699. With Apple making sacrifices in accessory offerings while enhancing the device's features, it's difficult to see why customers would be upset about the absence of wired EarPods.

We have a few months to wait until the new iPhone 12's release, and it will be interesting to see if these rumors hold true.

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