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While Competitors Rush to Launch,
Apple Prioritizes User Convenience | DBR
Apple AirPods became the de facto standard for the wireless earphone market upon their December 2016 release. Before AirPods, the various Bluetooth headsets sold in the market were unified into the in-ear style with AirPods' arrival. AirPods solved the chronic problems that wireless earphones had previously faced: inferior sound quality compared to wired earphones, lack of true wireless capability, short battery life, and most importantly, lengthy pairing time. To achieve this, Apple spent nearly five years acquiring Bluetooth earphone-related patents and acquiring companies with necessary technologies, waiting until it had the capability to create "the most perfect product." In particular, during this process, Apple pursued perfection that encompassed not just technological excellence but also consumer needs and emotions. As a result, AirPods emerged as Apple's cash cow and achieved the remarkable success of capturing 70% of the entire wireless earphone market.
DBR (Dong-A Business Review) covered the global success story of LG Electronics' neckband-style Bluetooth headset "TONE+" in a case study11DBR No. 220 (March 2017, issue 1) DBR Case Study: Refer to the LG Electronics TONE+ article.닫기 published in No. 220 on March 1, 2017. At that time, LG Electronics quickly entered the untapped market of stereo Bluetooth earphones capable of music playback, identified hidden customer needs, and established the new category of neckband-style headsets worn around the neck. As a result, LG Electronics' wireless headset revenue, which was only 8.6 billion KRW in 2011, peaked at 337.1 billion KRW in 2016, marking its heyday. Market share also reached 40% in the domestic market and nearly 30% in the highly competitive North American market. It was an innovation case that LG Electronics created in overseas markets, surpassing renowned traditional audio equipment specialists.
Unfortunately, the glory did not last long. In 2017, revenue dropped to 203.3 billion KRW, and by 2019 it had plummeted to 57.6 billion KRW, resulting in the loss of market dominance. Behind this decline was Apple's launch of "AirPods." When Apple released AirPods in December 2016, the entire market was restructured around AirPods. How were Apple AirPods, despite being a latecomer, able to dominate the market so quickly? At the same time, why did LG Electronics fail to respond properly even though it anticipated Apple's market entry? Four years after AirPods' launch, analyzing AirPods' market entry strategy remains meaningful because Apple consistently introduces new products and captures markets in a similar way. In other words, examining AirPods' success and competitors' failures is highly likely to provide valuable insights for many companies that will compete with Apple in other product categories.
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This content was translated into English by AI (using DeepL) from an article that was originally written in Korean in the DBR (Donga Business Review). Therefore, please understand that there may be some awkward expressions.
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