NPD data reveals that Beats accounted for 64% of the U.S. premium headphone market in 2012. Nine years later, in 2021, a survey found that the brand’s overall market share in the U.S., not just among its high-end competitors, was 15%. As of mid-2025, Apple, which owns Beats, accounted for 23% of the U.S. market share, which includes all of its sales of AirPods and Beats. That said, Beats went from being one of the biggest players in the market to being a part of Apple’s revenue in a big sea of AirPods. This market loss comes as Beats has its best lineup yet.
Although the brand was very popular in the early 2010s, it actually offered poor quality headphones with exaggerated bass. I remember buying Beats Solo headphones in 2012, and the product fell apart over the years: the ear cushions were destroyed, the rubber came loose from the headband, and the whole thing was just impractical to use after a while – and I’m not alone with this experience. However, how can a company that has improved so much over the past few years – and now falls under the umbrella of the tech giant that is Apple – go from being the most popular brand to being an underdog? Here’s what happened.
Apple has deprioritized Beats for too long
Although the acquisition of Beats could have contributed to the development and initial success of AirPods, there is no denying that the following years were turbulent for the brand. It took Beats a while to transition from cheap to premium materials, and Apple didn’t seem to know what to do with the brand before that either. Early on, some Beats headphones focused on proprietary chips, making them too similar to Apple’s AirPods internally. Releases like the Beats Solo Pro were a good idea to give the brand a premium feel, although this model received several complaints regarding comfort and usability.
Still, Beats has been much more consistent with its releases lately. Most of its lineup comes with Apple’s AirPods audio chips, and the products have been refreshed over the past couple of years. Additionally, Beats is expanding into a new market and experimenting with iPhone cases and USB-C cables. So while the brand is on the right track, it may never have the high-end reputation it once had.
There is fiercer competition
Not only does Beats face strong internal competition with Apple’s AirPods, but other competitors have become much better. Sony, Bose, Sennheiser and Marshall are among the companies that have literally won minds. In the latest study, ElectroIQ revealed that Sony has 30% of the global headphone market share, followed by Apple with 25% and Bose with 15%. All other brands collectively captured a 30% market share, showing that this is a market with a lot of competition and fewer clear winners. This is why Beats headphones no longer seem to be the go-to option for audio as users have more options with different price ranges, available features, and unique benefits.
Yet while Beats accounted for more than 60% market share in the United States a decade ago, it is now part of Apple’s market share, making it difficult to understand the contribution of Beats sales to the AirPods universe.
Beats updates are rare
For example, the Beats Studio Pro was released in 2023, followed by the Beats Solo 4 in 2024. Although by Beats standards, this still means these headphones are new, so many headphones have been released in recent years that it’s only natural that Beats models end up being deprioritized over newer products.
On top of that, users have complained about discomfort when wearing the Beats Studio Pro, and while the Beats Solo 4 may have a near-infinite battery, it also lacks active noise cancellation and other features that users have already come to expect in this price range. That said, Beats is expected to release new models featuring Apple’s H2 audio chip, better comfort, and adjustments that could make its headphones future-proof – instead of only focusing on releasing special editions, like the recent Beats Solo 4 partnership with K-pop star Jennie.
Beats headphones were more interesting than its headphones
Late last year, Beats rebranded Beats Fit Pro as Powerbeats Fit in updating its wingtip, with the company telling BGR that these headphones were one of the company’s most popular offerings. Today, Beats has various headphone offerings in different price ranges and features, while their headphone department is down to two models that are slowly becoming obsolete.
While I’ve suggested that releasing an all-new Beats Pro might be just what Beats needs to regain its momentum, it’s unclear whether the company could relive the boom it experienced in its early days. The main issue might be that Apple has to make a tough choice: Should Beats compete with some of the company’s headphones, or should AirPods continue to be the headphone priority that Beats was a decade ago?
