Headphone Market Predictions for 2011
Mark Karnes, Managing Director, Consumer Products Division, Etymotic:*:* We’re up almost 30% over 2009 in 2010, and it will probably be similar for 2011. That’s partly due to our collaborative efforts with Apple, and the timing of our introductions with the introductions of their product lines. Also, we were able to come in with a different price range that Etymotic had not featured before. We added $79 and $99 models that had similar sound characteristics and all the control features of the MC3 that Apple had built into its product line.
We also decided to move away from a complete distribution program where we’d assign our products over to a distributor who would then choose where to distribute them. We put together a managed-distribution program, which helped raise ASPs and improve participating retailer profitability.
*Aiello:* We are probably up about 500% in the category. We had been relatively new to the category and have been able to improve business by getting more and better feedback from our channels, helping us to reinforce our belief that the core of our headphone development is on the right path. In 2010, our first on-ear headphone, the Image ONE, was introduced, with the goal to capitalize on the success of the S4 line by putting that line’s acoustical performance into an on-ear model.