Key Takeaways
- Apple AirPods 5 brings incremental upgrades over AirPods 4, including up to 50% more noise cancellation and improved sound quality.
- Apple Intelligence, Live Translate, and head gestures for Siri add new AI-driven capabilities to the AirPods experience.
- AirPods 5 with ANC is priced at US$149, $30 lower than AirPods 4 with ANC, making pricing the most notable aspect of the launch.
- Smart Analytics Global expects Apple AirPods shipments to grow 8% YoY in Q3 and Q4 2026, with AirPods 5 expected to account for 46% of total AirPods shipments in H2 2026.
Apple Expands Its Wearable Portfolio
At its September 9 event at the Steve Jobs Theater at Apple Park, Apple announced a number of wearables, including the AirPods 5, Apple Watch Series 12, and Apple Watch Ultra 4, alongside the iPhone 18 Pro series and the highly anticipated iPhone Duo foldable (release capturing iPhones can be viewed here).
In this blog, Smart Analytics Global focuses on the AirPods 5.
Exhibit 1: Apple Airpods 5, Image source: Apple
AirPods 5: An Incremental Upgrade to AirPods 4
AirPods 5 was launched as the successor to AirPods 4, which was launched in September 2024. The latest model comes with incremental upgrades, while the overall design remains very similar to AirPods 4.
One of the key improvements is noise cancellation. AirPods 5 removes up to 50% more noise compared with AirPods 4 with ANC.
The earbuds also feature a new multiport acoustic architecture and next-generation Adaptive EQ, designed to deliver more detailed sound across a wider range of ear geometries.
Exhibit 2: Apple Airpods 5 Hands on, Image source: Linda Sui from Apple Park
Apple Intelligence and Live Translate
Another notable addition is Apple Intelligence. However, users will need an Apple Intelligence-supported iPhone to access these capabilities.
AirPods 5 also supports Live Translate. Users need to set up the feature through the Translate app on the iPhone and download their desired language. AirPods users can then access the feature by simultaneously pressing both stems, allowing them to hear a conversation in their preferred language.
AirPods can also respond to Siri AI through head gestures. A user wearing AirPods can simply nod their head to respond “yes” to Siri AI, while shaking their head horizontally allows them to respond “no.”
Battery Life Sees an Improvement
Apple claims that AirPods 5 provides up to five hours of playback with ANC on a single charge. This is one hour longer than the battery life offered by AirPods 4 with ANC.
This improvement, combined with the audio, ANC, and AI-related features, makes AirPods 5 a meaningful upgrade, although the overall design remains similar.
Pricing Is the Most Interesting Proposition
However, in our view, the most interesting aspect of AirPods 5 is its pricing.
AirPods 5 with ANC is priced $30 lower at US$149 than AirPods 4 with ANC at $179. This comes as a surprise, particularly given the additional features and improvements offered by the new generation.
At Smart Analytics Global, we believe this aggressive pricing could give a significant boost to the initial sales as well as the ongoing sales of AirPods 5.
Smart Analytics Global View
From a market perspective, pricing is likely to be one of the key attractions of the AirPods 5 launch. Apple has introduced incremental improvements in audio, noise cancellation, battery life, AI capabilities, and Live Translate, while simultaneously lowering the price of the ANC version.
We believe this combination could make AirPods 5 a particularly attractive proposition for consumers and could support stronger demand for Apple’s hearables portfolio.
Given the pricing dynamics, we have revised our forecast for AirPods sales growth, with the lower price expected to be an important catalyst for sales momentum.
Exhibit 3: Apple AirPods Shipment Growth Outlook
We believe Apple Airpods shipments will grow 8% YoY in Q3 2026 and Q4 2026. Airpods 5 (both models) will account for 46% of the total Airpods shipments in H2 2026 with Apple Airpods 5 without wireless charging shipment exceeding one with wireless charging. Given the low price, the emerging markets will also contribute significantly to the shipment growth. Also, Apple is releasing the product on September 18th this year compared to September 19th last year and September 20th in 2024 and hence it has extra day advantage to sell more in Q3.
Exhibit 4: Apple AirPods 5 Shipment Mix Forecast in H2 2026F
