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Highlights Apple is expected to remain the top brand in the global TWS earbud market through 2025, driven by strong demand for the upcoming AirPods Pro 3. Apple Watch’s global market share has dropped to around 20%, with Huawei growing rapidly at 16%. Apple’s App Store revenue surged to $8.4 billion in Q3, up 12% year-over-year with growth expanding beyond games into categories like productivity, lifestyle, and education. Apple AirPods. (Image credit - Apple) Apple is expected to stay on top of the global true wireless stereo (TWS) earbud market through 2025, thanks in part to the upcoming AirPods Pro 3, according to a new report from Counterpoint Research. The global TWS market is predicted to grow by just 3% year-over-year in 2025, signalling a shift from rapid expansion to a more mature phase. Apple will likely remain the leading brand in terms of revenue and brand recognition, but the actual growth in units sold will mostly come from affordable earbuds under $50, especially in emerging markets and from users replacing older models. Apple’s continued dominance in the premium segment is expected to be supported by strong demand for the AirPods Pro 3, which are rumoured to include better immersive audio and new health-focused features. But due to their higher price compared to budget models, they aren't expected to drive major growth in sales volume. In fact, Apple may lose a bit of market share this year. "A more noticeable increase in volume is expected around 2027, when the standard AirPods and a new ANC-equipped version are released," Counterpoint added While Apple leads the premium TWS market, brands like Xiaomi and JBL are growing fast. Xiaomi benefits from low pricing and a wide global reach, while JBL has gained popularity in places like India with mid-range products, smart pricing, and discounts. Both brands are projected to post double-digit shipment growth in 2025. The TWS market overall is starting to behave like the smartphone market, with longer replacement cycles and increasing importance of pricing and ecosystem compatibility depending on the region. Apple Watch Losing Ground Apple Watch. (Image credit - Apple) Coming to Apple Watch, Apple has long dominated the smartwatch market, at one point holding over 50% market share. But that's slowly changing. Apple’s share has now fallen to about 20%, though it still leads the global market. Huawei sits in second place with 16%, and is growing quickly, especially outside of its core markets in China and India. “Despite witnessing a YoY decline for the sixth consecutive quarter, Apple retained its top position in the global market, driven by its growing iOS user base,” says Counterpoint. The report also highlights strong performances from Huawei, Imoo, and Xiaomi, which are expanding globally and increasing competition for long-time leaders like Apple. “Strong performances from Huawei, Imoo and Xiaomi these leading Chinese brands not only strengthened their foothold in the domestic market but also gained traction internationally, intensifying competition for established global players,” the report states. App Store Revenue Surges 12% App Store. (Image credit - Apple) Despite pressure in hardware, Apple’s App Store revenue is doing well. A Bank of America report says the App Store saw a 12% year-over-year jump in June, with growth now spreading beyond just games. Sam Boughedda for Investing.com writes, “Citing SensorTower data, BofA said App Store revenue rose to $8.4 billion in Apple’s fiscal third quarter, an 11.5% increase from the same period last year. Downloads grew more modestly, up 4.3% to 8.6 billion, while revenue per download increased 6.9% to $0.98. June’s 12% revenue growth outpaced the 3% increase in downloads for the month, reinforcing a positive revenue mix shift, said BofA. Gaming, while still the largest category, accounted for just 45% of total App Store revenue in the quarter, down from more than 50% in prior years. BofA noted that “Photo & Video, Lifestyle, Books, Education, & Utilities each grew 100 basis points,” while “Productivity grew 200 basis points, marking the highest percentage change… We believe either scenario in the ensuing years could be a long-term tailwind for AAPL’s app store revenue.” Despite recent concerns over off-app payments following the Epic Games ruling, BofA said there is “no indication of adverse impact” on revenue to date.” FAQs Q1. How will the AirPods Pro 3 impact Apple’s position in the earbud market? Answer. Apple is expected to stay on top of the global true wireless stereo (TWS) earbud market through 2025, thanks in part to the upcoming AirPods Pro 3. Q2. What features are rumoured for the AirPods Pro 3 Answer. The AirPods Pro 3… are rumoured to include better immersive audio and new health-focused features. Q3. How is Apple’s App Store revenue performing? Answer. App Store revenue rose to $8.4 billion in Apple’s fiscal third quarter, an 11.5% increase from the same period last year. Also Read: Apple finally joins Threads, instantly gains nearly 5 million followers Also Read: Apple may launch a cheaper MacBook with iPhone chip, says Kuo

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