Sources: Apple is working on third-generation entry-level AirPods without noise cancellation and a smaller second version of the AirPods Pro
- New AirPods earbuds planned to be announced as early as 2021 — Hit accessory sees new competition from Amazon, Google, others
Context & Ripple Effects
Bloomberg's report lands four months after Kuo pegged AirPods 3 for the first half of 2021 with a Pro-like design, and the two sources now agree on the shape of the refresh: an entry-level third generation that keeps noise cancellation as the Pro differentiator, plus a smaller second-gen Pro. The lineage goes back to Bloomberg's own 2018 report on water-resistant, noise-canceling AirPods, which flagged development challenges that the Pro's eventual shipping form apparently resolved.
The competitive frame matters as much as the product: the description notes the hit accessory is drawing new challenges from Amazon, Google, and others, so Apple is refreshing both tiers of the lineup at once rather than defending just the premium end.
First-order effects
- Buyers get a clearer two-tier lineup: a cheaper third-gen AirPods without noise cancellation and a smaller AirPods Pro, with Bloomberg pointing to an announcement as early as 2021.
- Amazon and Google's earbud pushes stop being peripheral — Apple's refresh of both price tiers is a direct response to the accessory's first serious competition.
Second-order effects
- The tiering strategy sets up the follow-on roadmap: Bloomberg later reported Apple planning [[a:966801|redesigned AirPods for 2021 and a second-gen Pro for 2022 with updated motion sensors for fitness tracking]], meaning the entry model becomes the volume base for sensor-driven features.
- Rival earbuds from Amazon and Google now have to compete against a refreshed Apple lineup on price and features rather than against aging hardware, squeezing their differentiation window.
Third-order effects
- If the pattern holds, AirPods evolve from audio accessories into health platforms — the same reporting line later surfaced Apple exploring hearing health and body-temperature features alongside cheaper models, suggesting the entry tier exists partly to widen the sensor install base.
- The earbud market structurally splits into a sensor-and-services tier and a commodity audio tier, with Apple's refresh cadence and Amazon/Google's pricing defining where the line sits.
The trend: Wireless earbuds are shifting from single audio products to tiered wearable-sensor platforms, with Apple refreshing both price tiers to hold its install base against Amazon and Google.