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How AirPods became Apple's hottest product - CNN
Oct 19, 2021 48 secs
"Apple is basically saying, these are aspirational products, and if you can afford to spend around $1,000 on a phone you can spend another few hundred dollars or so on our accessories."

By lowering the entry-level price for AirPods, Apple is once again betting on the winning strategy it has used for products like the iPhone and Apple Watch, often referred to as the good, better, best model.

In addition to the AirPods 2 and AirPods 3, its premium AirPods Pro costs $259 and Apple's over-the-ear headset, the AirPods Max, sells for $550.

Offering a range not only encourages more customers to purchase Apple products but allows them to fall deeper into its device and app ecosystem, according to Ramon Llamas, director at market research firm IDC.

"Because [AirPods] are so engrained into the Apple ecosystem with Apple Music and Apple Fitness+, Apple loyalists -- of which there are millions -- prefer to stay with the Apple brand instead of considering another brand," Llamas said.

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