Harman International Competitors

Part
01
of six
Part
01

Harman International Competitors (6)

During Q3 2019, wireless speakers from Sonos were accounted for about $104.6 million in total revenue, while its home theater speakers comprised nearly $89.7 million. Sales and marketing expenses rose from $258.0 million (2016) to about $270.2 million (2017). The total revenue of Edifier Technology was 880.87 million CNY (or $124.56 million) in 2018 and 900.79 million CNY ($127.37 million) in 2017. Denon is a brand of the company Sound United and, according on ZoomInfo, the annual revenue of Sound United is $200 million.

Competitive analysis for Sonos, Denon, and Edifier

Sonos

REVENUE AND GROWTH
  • In Q3 2019, wireless speakers from Sonos accounted for approximately $104.6 million in total revenue, while its home theater speakers made up nearly $89.7 million.
  • In Q2 2019, the company's revenues increased to $260 million, a rise of about 25% year-over-year. This included an estimated 61% increase in sales (dollar value) for the Sonos One speaker.
  • In Q3 2019, the company sold less than 1.1 million products from its components, home theater, and wireless speakers categories.
  • In 2005, Sonos Inc. unveiled the first wireless multi-room home sound system in the world.
  • Their products include wireless speakers, home theater speakers, and components to satisfy the changing needs of consumers regarding home audio.
  • In October 2017, Sonos One was first released, and their Sonos Beam was released in July 2018.
  • They have estimated that their "customers listened to five billion hours of audio content using their products in fiscal 2017, which represents 33% growth from fiscal 2016."
  • Sonos' "innovative products, seamless customer experience and expanding global footprint have driven 12 consecutive years of sustained revenue growth since their first product launch."
  • In the year 2017, existing clients made up an estimated 38% of brand-new product registrations.
  • Its products are distributed in more than 50 nations, while 55% of its 2017 revenue came from outside the United States.
  • The company generated revenue of $655.7 million in the six months ended March 31, 2018, which indicated an 18% rise from $555.4 million in the previous year and 2016 (concluded April 1, 2017).
  • Their net income was around $13.1 million for the first six months of 2018 (concluded March 31), while its adjusted EBITDA was approximately $50.5 million.
  • In 2017, the company enjoyed revenue of $992.5 million, which indicated a 10% rise from 2016 ($901.3 million).
  • In fiscal 2017, their net loss was $14.2 million, and the adjusted EBITDA was $56.0 million.
  • Most notably, the company produces its revenue from selling home theater and wireless speakers as well as components.
  • Additionally, they earn a small amount of their revenue directly from the sale of third-party and Sonos accessories, like wall mounts and speaker stands.
  • Products :
    • Wireless Speakers - Our wireless speakers include PLAY:1, PLAY:3 and PLAY:5, as well as the recently released Sonos One, which includes native voice control.
    • Home Theater Speakers - Its home theater items involved speakers and a sub woofer manufactured to play audio content from video and TV. The company's home theater offerings included SUB, PLAYBASE, and PLAYBAR, along with Sonos Beam incorporated with native voice control.
    • Components - Its CONNECT and CONNECT:AMP permits users to convert home theater setups, stereo systems, and wired speakers from a third-party into its simple, wirelessly managed streaming music system.
AD SPEND
  • Fiscal 2016 Compared to Fiscal 2017:
    • In 2017, its marketing and sales expenses grew by $12.2 million (4.7%) to $270.2 million from $258.0 million in 2016.
    • This expansion was mostly caused by a rise of about $18.4 million in advertising and additional marketing expenses centered on brand awareness, along with the release of the company's PLAYBASE product (April 2017) and a growth of $3.9 million in expenses related to personnel.
    • However, growth was offset by a $6.1 million decrease in overhead expenses, as well as a $4.1 million reduction in product display depreciation.
TOP-SELLING PRODUCTS
PRODUCTS THAT OFFER VOICE-ACTIVATED FEATURES
  • According to the company "we have increasingly focused our product roadmap on voice-enabled speakers, and we recently introduced our first voice-enabled speaker, Sonos One, in October 2017, and our first voice-enabled home theater speaker, Sonos Beam, in July 2018."
  • Also, according to its website, the company has only one wireless speaker with voice-activated feature among all (9) of its wireless speakers.
  • Calculation - Therefore, the percent of products that offer voice-activated features = (1/9) x 100 = 11.11%

Denon

REVENUE AND GROWTH
  • Denon is a brand of the company Sound United.
  • As listed by ZoomInfo, the annual revenue of Sound United is approximately $200 million.
  • The company has not made its annual report or any other financial reports available to the public.
AD SPEND
  • As published by Media Radar, Sound United spent less than $100 million on digital and print advertising within the last year.
  • There are no available details for the advertising spend or promotional expense specifically to Sound United or Denon's wireless speaker segment from Sound United, ZoomInfo, or Media Radar.
TOP-SELLING PRODUCTS
  • The company's top-selling products include Denon AVR-S540BT, Denon AVR-X1500H, Denon AVR-S650H (2019 model), Denon AVR-X2500H, Denon AVR-X8500H, Denon AVR-X6500H, Denon AVR-X4500H, Denon AVR-X2600H (2019 model), Denon AVR-X3500H, Denon HEOS AVR, Denon AVR-S950H (2019 model), and Denon AVR-X1600H (2019 model).
PRODUCTS THAT OFFER VOICE-ACTIVATED FEATURES
  • Out of 13 wireless speakers, eight are currently available to operate using Amazon Alexa voice commands.
  • Calculation: Therefore, the percent of products that offer voice-activated features = (8/13) x 100 =61.54%

Edifier

REVENUE AND GROWTH
AD SPEND
  • The total selling/general/administration expenses amounted to 147.31 million CNY in 2017 and around 159.62 million CNY in the year 2018.
  • There are no available details for advertising spend or promotional expense specifically to Edifier's wireless speaker segment after searching through financial reports from the WSJ, Investing, and EMIS.
TOP-SELLING PRODUCTS
  • There are no available details pertaining to its top-selling product under the wireless speaker segment or other products of which wireless speaker is incorporated.
PRODUCTS THAT OFFER VOICE-ACTIVATED FEATURES
  • According to its official website, the company has no wireless speaker with voice-activated features.

Research Strategy:

We could not locate the exact advertising spend and percent of products that offer voice-activated features wireless speaker for Sonos, Denon, and Edifier. However, we attempted to provide some relevant insights on this topic. Our research commenced by searching through each company's website to find a list of the products offered and obtain a percentage of the wireless speakers offering the voice-activated feature. Through this strategy, we found information on Denon's wireless speakers, but Edifier has no wireless speakers with voice-activated features. We also hoped to find details on their company websites related to revenue, growth, advertising spend, and top-selling products, as companies often share these details in the 'About Us' section. However, none of the companies disclosed the data on their website.

For the top-selling products, we reviewed e-commerce sites such as Amazon, The I Lab, Crutchfield, etc. These websites often provide the top-selling products, and we wanted to present the most popular products in place of the top-selling ones as a proxy. Using this strategy, we were able to identify the top-selling products of Sonos, but nothing was available for Edifier's wireless speakers. For Denon, this search provided the top-selling home theater receivers, but no information on the wireless speaker segment.

Next, we reviewed the companies' annual reports, financial reports, SEC filings, etc. to obtain data on revenue, growth, advertising spend, and top-selling products of Sonos, Denon, and Edifier's wireless speaker segment. We were able to locate the SEC filing for Sonos, which provided some relevant information about its voice-activated product, along with the revenue and growth of its wireless segment, but the ad spend was not specific to the wireless speaker section. For Edifier, although we found the total revenue and operating expense, nothing was available on the wireless speaker segment specifically. While searching for Denon, we were unable to locate their annual report, financial reports, SEC filings, or any financial information through media sources. However, we learned that Denon is a brand under Sound United, and it appears that the company has not made its financial information available to the public. In the absence of any particular information related to the wireless speaker segment, we provided the total revenue, and ad spend obtained from ZoomInfo and other media sources.

Later, we searched for market research reports related to wireless speakers, hoping that these would contain information on the top-selling brands. Generally, these reports consist of revenue, growth, and other relevant details about the leading brands in the market. While searching through PR Newswire, CR (Consumer Reports), S&P Global, Market Watch, etc., we found some paid reports. A few of the global reports by Market Watch, Reuters, etc. contained relevant data concerning the revenue from Sonos' WiFi wireless speakers, along with its market share and gross margin for 2017-2018. However, the report is behind a paywall, and hence, we could not access the data. The report contains information on all three brands, Sonos, Denon, and Edifier. We also found paid articles from MarketWatch and Reuters.

Afterward, we explored for press releases and media sources such as Market Watch, VCJ, Reuters, Voicebot, Variety, Musically, Headphones Compared, BGR, Yahoo, Campaign, etc. We hoped that these companies disclosed some details regarding revenue, growth, advertising spend, top-selling products, and percent of products that offer voice-activated features to the media. Typically, companies disclose these details in media reports, press articles, or interviews with the top authorities of the company. This strategy provided information on Sonos' wireless speaker segment's revenue and growth. However, there was nothing related to Denon or Edifier's wireless speaker segment. Most of the sources discussed the legal conflict involving Sound United and Sonos and their products, but there was nothing specific to the wireless speaker segment.

Calculation:

Sonos -
According to the company, "we have increasingly focused our product roadmap on voice-enabled speakers, and we recently introduced our first voice-enabled speaker, Sonos One, in October 2017, and our first voice-enabled home theater speaker, Sonos Beam, in July 2018."
Based on its website, the company has only one wireless speaker with voice-activated feature among all (9) of its wireless speakers.
Therefore, the percent of products that offer voice-activated features = (1/9) x 100 = 11.11%
Denon -
Out of 13 wireless speakers, eight are now available to control using voice commands via Amazon Alexa, as per its website.
Therefore, the percent of products that offer voice-activated features = (8/13) x 100 =61.54%
Part
02
of six
Part
02

Harman International Competitors (5)

After an extensive search through official websites, investor relations, and annual reports of the given three companies along with several market analysis databases, details about the revenue, growth, advertising spend, and others of the wireless speaker segment do not appear to be available in the public domain. However, the research team was able to gather valuable insights that are provided below.

HELPFUL FINDINGS

  • Sony's top-selling products in the wireless speaker segment include Sony SRS-XB10, Sony SRSBTV5, and Sony SRS-SB30.
  • Sony's advertising spends in 2018 was $385.5 billion.
  • Only 1 out of 15 (5.55%) of the wireless speakers offered by Sony possess voice-activated features.
  • According to the official website of Shure Incorporates, it doesn't seem to offer any kind of wireless speaker except complex wireless systems for audio management.
  • After thoroughly analyzing wireless speakers offered by Koninklijke Philips NV, none of them seem to offer voice-activated features.


RESEARCH STRATEGY

We commenced our research by first conducting a direct search looking for all the requested details for all the given companies. We searched through the official websites, annual reports, and investor relations of all three companies hoping to get the details regarding their revenue from wireless speaker segment, growth, advertising spend, and top-selling products. We also looked for any mention of any percentage regarding their different products in this segment like X% are voice-activated, Y% are AI integrated or similar to conclude the percent of products that offer voice-activated features. Unfortunately, none of the companies have publicized any relevant information regarding their wireless speakers including revenue, growth, advertisement spends and others. In fact, after a thorough analysis of the website of Shure Incorporated, we came to know that they don't offer wireless speakers instead they offer wireless audio systems.

We then looked for research publications, surveys, and case studies ever conducted on the financial performance of these companies. We were hoping to triangulate the revenue and growth for the wireless speaker segment by utilizing the revenues of all of their products in this segment. Additionally, we hoped to find a breakdown of different kinds of spending on advertising in order to infer the advertising spend. Despite searching through several research databases including Research Gate, Pew Research, and others, we could not gather any relevant information since most of the databases focused on the strategic performance with no mention of any metric regarding the wireless speakers' segment.
In order to determine the top-selling products, we consulted several websites targeting the best-selling or top wireless speakers including Top Portal Review, Mashable, and others. Through this search, we were able to determine the most selling wireless speakers of Sony. Unfortunately, this strategy didn't yield a positive result for Koninklijke Philips NV and Shure Incorporated. Additionally, for determining the percentage of wireless products offering the voice-activated feature, we extensively analyzed each wireless product offered by the three companies to see if they possess that feature and hence determined the percentage by dividing those numbers by the total number of products in the wireless speaker segment and filled the same in the brief. However, none of the wireless speakers of Koninklijke Philips NV seem to possess this feature, and as already specified, Shure Incorporated doesn't deal with wireless speakers.

As none of the above strategies yielded any useful result regarding revenue, growth, advertising spend, and others for the wireless speaker segment of the three companies, we then attempted to look for statistics regarding the market size of these companies hoping to get any related statistics or percentage regarding sales of different segment products, spends, or similar in order to triangulate the requested data points. Following the same path, we thoroughly analyzed several private companies' databases including Statista, Forrester, Forbes, and others. The majority of the databases yielded statistics regarding the overall revenue, spend for a segment like audio and video, and overall marketing spends of the companies with no specific metric sufficient enough to infer the requested details for the wireless speaker segment.

Again for top-selling products for Philips NV and Shure Incorporated, we reviewed several e-commerce websites like Amazon and others. We were hoping to present the most popular products as the most selling ones as a proxy. Unfortunately, the popularity of products seems to be varying on different platforms with even little number of ratings as well which made it difficult for us to reach any conclusion regarding the most popular ones. Additionally, there was not a single mention of any wireless speaker by Shure Incorporated which further supported that fact provided by its website regarding its non-involvement in this product segment.

As a last resort, we attempted to look for the global wireless speakers market. We were hoping to find any detailed paywalled report containing relevant information for the given three companies since they are most likely to contain such information. We searched through several large market analysis datasets including Marketwatch, Deloitte, and others. Although there were several reports, they were lacking in details on Philips NV, and Shure Incorporated. However, we were able to gather a paywalled report by Research and Markets which claims to contain information regarding the revenue of the wireless speaker segment of Sony along with other details. The report can be accessed here.
Part
03
of six
Part
03

Harman International Competitors (4)

HomePod is Apple's top selling voice-enabled wireless speaker. Bose, which has 35 wireless speakers in its product range, has 3 voice-enabled wireless speakers, namely Bose Portable Home Speaker, Bose Soundbar 700 and Bose Soundbar 500. Harman, which was acquired by Samsung in 2018, includes Onyx Studio 5, Traveler, Aura Studio 2, and Go + Play as its top-selling wireless speakers with voice activation features.

APPLE

  • Revenue:
    • The net revenue of Apple's Other Products which included sales of AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch, and other Apple-branded and third-party accessories was $17,417 million in 2018.
    • The accessories business line, which included sales of Apple’s AirPods wireless headphones, the Apple Watch, Beats headphones, the HomePod speaker, and other accessories, generated $5.525 billion in revenue for the quarter of 2019, a jump of nearly 50% over the same period last year.
  • Growth:
    • From sales of other accessories business line, which includes sales of Apple’s AirPods wireless headphones, the Apple Watch, Beats headphones, the HomePod speaker, and other accessories, generated a 35% increase from 2017 to 2018.
  • Advertising Spend:
    • Apple Inc.'s advertising costs are expenses as incurred and included in selling, general and administrative expenses.
    • No details for advertising spend specifically to Apple's wireless speaker segment were disclosed in Apple's report.
  • Top Selling Products:
    • iPhone product is the top selling product of Apple with $166,699 Million in Sales in 2018.
    • No details pertaining to top selling product under wireless speaker segment or other products of which wireless speaker includes were disclosed in Apple's report.
  • Percent of products that offer voice-activated features:
    • At the time of this research, Apple had a 100% ratio of wireless speakers with voice-activated features over the number of wireless speakers in the product range with HomePod as its only product in the category.

BOSE

  • Growth:
    • There was a 5.2% growth in sales from 2017 to 2018 for Bose Corporation in general.
    • No data pertaining to wireless speaker segment specifically were provided.
  • Advertising Spend:
  • Top Selling Product for wireless speakers:
    • Bose Soundlink Bluetooth Speaker III, Bose Soundtouch 30 Wireless Speaker, Soundlink Color II, Soundlink Revolve, Soundlink Mini II Limited Edition, Soundwear Wireless Wearable Speaker, Soundtouch 130 Home Theater, and Virtually Invisible 300 Wireless Speakers are the best Bose speakers according to a review.
  • Percent of products that offer voice-activated features:
    • Out of 35 wireless speakers, 3 has voice-activated features in Bose's product range, giving a ratio of 8.5% at the time of research.

HARMAN

Harman International is a business division of Samsung that operates independently and produces automotive electronics components like head units, infotainment systems, telematics, and speakers, among others.
  • Revenue:
  • Growth:
    • There was 25.35% growth in sales from 2017 to 2018.
  • Advertising Spend:
    • Harman, prior to taking over of Samsung, spent over $10 million in 2017 for its marketing outreach for its lifestyle audio offerings in Singapore and the Asia Pacific region.
    • Samsung, as a whole, spent KRW 3,998,491 million or $3.38 trillion for advertising in 2018.
  • Top Selling Product for wireless speakers:
    • Onyx Studio 5, Traveler, Aura Studio 2, and Go + Play were the best selling wireless speakers of Harman at the time of research.
  • Percent of products that offer voice-activated features:
    • Out of 21 wireless speakers, 6 has voice-activated features in Harman's product range, giving a 28.57% ratio at the time of research.

Research Strategy:

We commenced our research by first conducting a direct search looking for all the requested details for all the given companies. We searched through the official websites, annual reports, and investor relations of all three companies with a hope to get the details regarding their revenue from wireless speaker segment, growth, advertising spends, and top-selling products.

For top-selling products, we reviewed several e-commerce websites like Amazon and others. We were hoping to present the most popular products as the most sold as a proxy. Unfortunately, the popularity of products seems to be varying on different platforms with even little number of ratings as well which made it difficult for us to reach any conclusion regarding the most popular ones. So, we leveraged from company websites, reports, blogs, news articles, and other sources that rank gadgets like Gear Hungry, Mac Rumors, and Quartz, among others. We assumed the top products ranked by these sources as the top-selling since these were the most reviewed and most common to e-commerce websites.

To look for the ratio of wireless speakers with voice-activated features over the number of wireless speakers in the product range, we search company websites and related articles for exact figures. When there were no available figures, we resorted in to counting the products with the voice-activated feature and computed for its percentage over the product range in the category.

BOSE:
35 products are wireless speakers
3 has voice activated features:
3/35 = 8.5%

HARMAN
21 wireless speakers
6 has voice activated features:
6/21 = 28.57%

OTHERS HELPFUL STRATEGY:
We used the companies' revenue for 2017 and 2018 to compute for growth with the CAGR calculator.
The revenue figures of Samsung were shown in Korean Won, so we used an online tool to convert KRW to USD.

For revenue, growth, and advertising spend, we implemented the below strategies:

First, we conducted a direct search looking for all the requested details for all the given companies from their respective official websites, annual reports, and investor relations to get the details regarding their revenue from wireless speaker segment, growth, advertising spends, and top-selling products. We also reviewed sustainability reports and annual revenue reports shown on each website in order to review annual revenue and marketing or advertising costs. Revenue and Advertising cost of the companies were given in general. No details specific to wireless speaker segment revenue and advertising spend were disclosed in the annual reports.

Next, we looked for research publications, surveys, and case studies ever conducted on the financial performance of these companies. We hoped to triangulate the revenue and growth for the wireless speaker segment by utilizing the revenues of all of their products in this segment but yielded no result for each segment reports. We also looked in hoping to find a breakdown of different kinds of spending on advertising. Despite searching through several research databases including Research Gate, Pew Research, PRNewswire, Forbes among others, we could not gather any relevant information. Most of the databases were focused on the strategic performance in general with no mention of any metric regarding the wireless speakers' segment.

Lastly, we made an effort to look for statistics regarding the market size of these companies hoping to get any related statistics or percentage regarding sales of different segment products, spends, or similar in order to triangulate the requested data points. Following the same path, we thoroughly analyzed several private companies' databases including Statista, Forrester, Forbes, and others. The majority of the databases yielded statistics regarding the overall revenue, overall marketing or advertising spent of the companies with no specific metric sufficient to conclude the requested details for the wireless speaker segment.

Part
04
of six
Part
04

Harman International Competitors (2)

The annual revenue of Sennheiser is €710.7 million (2018), the revenue of Bose is $4billion (2018), and Harman's revenue is $6.16 billion (2015). They had a growth of 3.17%, 2.6%, and 11.33% respectively. More information on the topic is provided below.

SENNHEISER

  • In the year of 2018, wireless headphone sales were up 6.4% from the previous year.
  • The revenue for the year 2017 was €667.7.
  • The revenue for the year 2018 was €710.7, and sales increased from 2017 to 2018 by a total of €43.0.
  • Sennheiser increased their research and marketing in 2017 by 6.2% to €57.8.
  • As per the CAGR calculator, it had a 3.17% growth.
  • In addition to focusing on research and development, marketing focused on targeted investments and strategic partnerships with an emphasis on augmented reality and virtual reality.
  • The company's top selling products are: Sennheiser RS120 On-Ear Wireless RF, Sennheiser HD 4.40 Around Ear Bluetooth, Sennheiser HD 598 SR Open-Back, Sennheiser HD 650, Sennheiser HD 4.50 Bluetooth, Sennheiser HD 660 S — HiRes Audiophile, Sennheiser PXC 550 Wireless, Sennheiser HD1 Wireless, Sennheiser HD280PRO, Sennheiser 506080 GAME ONE, Sennheiser PXC 550 Wireless, GSP 600, HD1 Free, HD1 Wireless, HD1, HD 4.40 HD, HD 599, HD 660 S.
  • After a thorough revision of headphone products, no voice activated products were identified, only headphones with communication options were found.

BOSE

  • The annual sales in 2018 were $4 billion.
  • The annual sales in 2017 sales $3.8 billion.
  • As per the CAGR calculator the sales had a 2.6 % growth.
  • Bose 2020 sustainability goals for growth were to increase management training participation from 84 % to 95%. Currently they are on track to hit 90%.
  • Another goal was to increase the number of people who benefit through community programs by 50%, which is 23 times more than in the 2017 fiscal year.
  • The company wants to reduce energy consumption by 6 % per unit produced. The current energy use was already 6% less than the 2017 fiscal year.
  • Bose wants to increase water waste recycling to between 90% to 95%. They have currently a 94.3% recycling water rate.
  • According to Kantar Media report, Bose spent $35.7 million in advertising in 2016.
  • The company spent $6.4 million on advertising in the first six months of 2017. The spending figures are closer to $80million in the US and $150million globally.
  • The company's top selling products are: Bose QuietComfort 35 (Series ll), Bose Soundsport In-ear Headphones, Bose Soundlink ll Wireless Over-ear, Bose QuietComfort 25,Bose Soundsport Wireless, Soundsport Free True Wireless, Bose QuietComfort 20 Acoustic Noise Canceling, Bose Soundlink On-Ear Bluetooth Headphones, Bose QuietControl 30 Wireless Headphones, Bose QuietComfort 35 Wireless Headphones (Series l).
  • Their products also include: A20® Aviation Headset, SoundWear Companion speaker, Custom QuietComfort 35 wireless headphones II, Bose Frames Rondo,QC20 noise canceling headphones — Apple devices, SoundLink® around-ear wireless headphones II,QC20 noise canceling headphones — Samsung/Android devices, Bose Headphones, Bose Frames Alto, Bose on-ear wireless headphones, QuietComfort 35 wireless headphones II, Bose Noise Canceling Headphones 700,Bose noise-masking sleepbuds™, SoundSport in-ear headphones — Apple devices, SoundSport in-ear headphones — Samsung/Android devices, SoundSport Free wireless headphones, QuietControl 30 wireless headphones, SoundSport wireless headphones, SoundComm B40 Headset, ProFlight Series 2 Aviation Headset.
  • The Bose website shows 20 headphones that they are currently selling. Of those 20, there are 6 that offer a voice command feature, representing 1.2% of the headphones offered.

HARMAN

RESEARCH STRATEGY:

First, we conducted a thorough revision of each company's website to get a list of the products offered to obtain a percentage of how many headphones offered the voice activated feature. Then, we took the total number of headsets versus the number of voice activated headsets to get the percentage of voice activated headsets offered. For example: Bose offers 20 headsets and 6 of those are voice activated (20*.06=1.2%). Sennheiser and Harman did not show any current voice activated headphones available according to the direct websites.

Secondly, we revised sustainability reports and annual revenue reports shown on each website to review annual revenue and marketing or advertising costs. Also, we researched forcasted advertising budgets, but this strategy was not successful. We were unable to obtain a current revenue for Harman as they were taken over by Samsung, so we included the 2016 sustainability report from Harman prior to the take over. We searched through Samsung sustainability reports from previous years, which offered specific Harman information, but did not include the revenue for Harman specifically, only for Samsung as a total.

Finally, we reviewed lists of top selling and top rated headphones for each company on a well-known music critic website to give a more accurate list of top selling headphones for each of the brands requested. We were not able to get a breakdown of sales for each individual headphones from this specific website, which is the reason we included both the direct company website and a list from an industry expert.


Part
05
of six
Part
05

Harman International Competitors (1)

The findings below do not reflect much of the revenue, growth, advertising spends, except the top-selling products of Sony and Apple's wireless headphone segment as requested because detailed studies are behind pay-walls. However, the market share of the three companies' brands is examined under the true wireless headphone segment, along with revenue returns from broader categories. Also, the noise-canceling models and the global top 10 selling brands are highlighted, giving insights into the top-selling products of each company. The report indicates that Apple AirPods has a larger portion of the market than Sony and Phillips.

OVERVIEW

  • As at the end of 2018, true wireless headphones market size was 12.5 million units, with another report mentioning it at 11.5 million units.
  • It is said that "growth in true wireless, voice technology, noise-canceling and an overall improvement in the durability and quality of headphones will encourage growth in prices throughout the forecast period."

SONY

  • The electronics and solutions segment of Sony consists of the following sub-segments: imaging products and solutions business (cameras, recorders), mobile communication business (smartphone, internet service), and home entertainment and sound business (TV, audio/video).
  • Sony's electronics and solutions segment recorded a free cash flow of 89.5 billion yen ($832 million) in 2018, accounting for 17% growth increase from 2017.
  • Sony's advertising budget was $3.7 billion in 2016 and $3.55 billion in 2018. The latter is a reduction from the previous year.
  • A combined sub-segment of headphones, soundbars, and wireless speakers accounted for 50% of the total sales of the video and sound business in 2018.
  • Sony's annual growth in the audio segment grows at an annual 10%, with the headphone market leading the way.
  • Noise-canceling (NC) features in wireless headphones are now much sought after, with 23.8 million units expected to be shipped in 2018.
  • The NC brand is led by Sony, Bose, and Beats.
  • The brand's best-in-class noise-canceling wireless headphones are the 1000X series (wh-1000xm3, wi-1000x, and wf-1000x).
  • It is ranked among the global top ten selling brands, with its top-selling product being the Sony WF-SP700N noise-canceling earbuds and sold for $144.99 on Amazon.
  • About 154 million units of voice-assistant headphones are expected to be shipped in 2022 with Sony already one of the brands offering access to this service by making earpiece units with push-to-talk buttons.

PHILLIPS

  • In 2018, the advertising and promotion cost of Phillips for its brands was 937 million euros ($104 million).
  • The company lost share in the headphone market in early 2018 owing to financial trouble, with some share captured by one of its competitors — JBL.
  • None of Phillips' brands is ranked in the global top ten selling brands.
  • The Philips PH805 wireless NC headphone that was launched at IFA 2019 and is set to hit the market in October 2019, seems set to challenge the global top 10 status with its pricing and features.

APPLE

  • The total net revenue of Apple (9-months ending second quarter on June 30, 2019) for sales under its 'wearables, home, and accessories category is $17.9 billion.
  • About 154 million units of voice-assistant headphones are expected to be shipped in 2022, with Apple already one of the brands offering access to this service by making earpiece units with push-to-talk buttons.
  • Apple is the company in the headphone segment, occupying an 83% unit share in 2018.
  • In 2018, Apple, Sony, and Harman brands accounted for 29% of units in terms of market share, but the trio of Apple, Sony, and Beats led revenue share with 44%.
  • True wireless headphones were dominated by Apple AirPods as at the end of 2018.
  • Although Sony continues to be ahead in terms of volume, second place Apple boasts of the highest market share largely to the success of its AirPods.
  • The brand had 60% of the market share of true wireless headphones at the end of 2018.
  • It is ranked among the global top ten selling brands, with its top-selling product being the Apple AirPods and sold for $144.95 on Amazon.
  • Revenue generated by the AirPods was projected to be around $4.3 billion in 2018, accounting for under 2% of the company's earnings for that year.

RESEARCH STRATEGY

We started our research by examining one company at a time. Our research suggests that market share for each company is extremely difficult to find as no separate category was found. For the three companies, we tried to get their annual revenue quarterly reports with the intent to highlight the wireless headphone segments. While Sony no longer makes public its reports, Apple classified its segment under the 'wearables, home, and accessories' category, and Phillips didn't breakdown its market segments to take us close to its wireless headphone sales report.

We made a second attempt by examining research platforms such as IBIS, Statista, among others and what we obtained was global data of the headphone market without specifically narrowing it to the wireless category or the leading brands in the sector.
We made a third attempt by trying to examine the request indicators from these companies' websites, but nothing was available there except the promotion of their brands. Although we got the comprehensive ad budget on Sony's and Phillips' products and services, that of Apple wasn' t available. We attributed the absence of this information to the attempt to keep it confidential and not for public consumption.

After not finding anything on any of the research platforms mentioned earlier and on the companies' websites, we tried business reports such as Forbes, Reuters, among others, but still didn't get anything holistic. We also got data on revenues from broader categories of two companies, but we couldn't narrow down that of Phillips. We were able to get the global top ten selling true wireless brands and used that to rate the three companies and this helped in highlighting the market share of these companies in the true wireless sector. For others unavailable, we concluded that a study on the request indicators for these companies is prioritized behind pay-walls like Profound, Reportlinker, among others.
Part
06
of six
Part
06

Audio Market Sizing

The most recent available market size of the audio industry is $207.5 billion in 2017, with a triangulated compound annual growth rate (CAGR) of 4.08%. The market size in 2019 is expected to be USD $224.78 billion. The market share of wireless headsets, wireless speakers, and in-home speakers in the audio equipment industry is 5.054%, 5.7%, and 1.78% respectively.

MARKET SIZE OF AUDIO INDUSTRY

MARKET SHARE FOR DEVICES

  • The 2019 global market size of wireless headsets is estimated to be $11.136 billion with a CAGR of 20%.
  • The 2019 global market size of wireless speakers is estimated to be $12.81 billion with a CAGR of 17%.
  • The 2019 global market size of in-home/smart speakers is estimated to be $4 billion with a CAGR of 34.85%.
  • The market share of wireless headsets in the audio equipment industry is 5.054%.
  • The market share of wireless speakers in the audio equipment industry is 5.7%.
  • The market share of in-home/smart speakers in the audio equipment industry is 1.78%.

RESEARCH STRATEGY:

In order to provide the requested information, we made the following triangulation for the market size of the audio industry:
We first found the market size of the audio industry in 2017, which was readily available for some segments, as well as for the entire audio industry.
To calculate the CAGR, we used the CAGR of five segments of audio equipment industry: home audio equipment, pro audio equipment, car audio equipment, sound reinforcement equipment, and amplifier market.
We chose these particular segments because the data was readily available for triangulation, and additional research didn't provide other segments that we could integrate in our triangulations. For clarity, these segments do not represent the entire market, they are only used to estimate the CAGR.
1. Market Size of Home Audio equipment: USD $19.5 billion, CAGR — 3.6% 

2. Market Size of Pro Audio equipment in 2019: USD $3.7 billion, CAGR — 4.7%
Market size in 2018, can be found as — 2019 market size — (2019 market size * CAGR) = $3.7 billion — ($3.7 billion * 0.047) = USD $3.526 billion
Market size in 2017, can be found as — 2018 market size — (2018 market size * CAGR) = $3.526 billion — ($3.526billion * 0.047) = USD $3.36 billion

3. Market Size of Car Audio equipment: USD $21 billion, CAGR — 3.5% 

4. Market size of Sound Reinforcement equipment in 2023 is projected to be USD $9 billion, with CAGR of 3.01%, which can be assumed to be the same since 2017, safely assumed since the research website that provided this data has assumed CAGR to be the same until 2023, i.e. five years.

Market size in 2022, can be found as — 2023 market size — (2023 market size * CAGR) = $9 billion — ($9 billion * 0.0301) = USD $8.73 billion
Market size in 2021, can be found as — 2022 market size — (2022 market size * CAGR) = $8.73 billion — ($8.73 billion * 0.0301) = USD $8.467 billion
Market size in 2020, can be found as — 2021 market size — (2021 market size * CAGR) = $8.467 billion — ($8.467 billion * 0.0301) = USD $8.21 billion
Market size in 2019, can be found as — 2020 market size — (2020 market size * CAGR) = $8.21 billion — ($8.21 billion * 0.0301) = USD $7.965 billion
Market size in 2018, can be found as — 2019 market size — (2019 market size * CAGR) = $7.965 billion — ($7.965 billion * 0.0301) = USD $7.725 billion
Market size in 2017, can be found as — 2018 market size — (2018 market size * CAGR) = $7.725 billion — ($7.725 billion * 0.0301) = USD $7.5 billion
Market Size of Sound Reinforcement equipment: USD $7.5, with CAGR — 3.01%

5. Market size of Audio Amplifier equipment in 2019 is USD $3.4 billion, with CAGR of 5.6%.
Market size of Audio Amplifier equipment in 2017 can be found from market size in 2018.
Market size in 2018, can be found as — 2019 market size — (2019 market size * CAGR) = $3.4 billion — ($3.4 billion * 0.056) = USD $3.21 billion.
Market size in 2017, can be found as — 2018 market size — (2018 market size * CAGR) = $3.21 billion — ($3.21 billion * 0.056) = USD $3.03 billion
Market Size of Audio Amplifier equipment in 2017 is: USD $3.03, CAGR — 5.6%
Total market size considered using different segments in audio industry in 2017: Sum of market sizes of all five different segments available (in billions) = USD $(19.5 + 4.8 + 21 + 7.5 + 3.03) = USD $55.83 billion.
This is the total amount of market size segments we could find credible sources for. These segments do not constitute the entire market, which was valued at USD $207.5 billion in 2017.
Average of CAGR for 2017 of different segments of Audio Industry is = Sum of CAGRs of segments considered/5
= (3.6 + 4.7 + 3.5 + 3.01 + 5.6)/5 = 4.08
Market size of Audio Industry in 2017 = USD $207.5 billion.
Market size in 2018, can be found as — 2017 market size + (2017 market size * CAGR) = $207.5 billion — ($207.5 billion * 0.0408) = USD $215.97 billion
Market size in 2019, can be found as — 2018 market size + (2018 market size * CAGR) = $215.97 billion — ($215.97 billion * 0.0408) = USD $224.78 billion
We used the average CAGR of available segments of the industry to triangulate the CAGR of audio equipment industry.

Calculations for Market Share of Wireless Headsets:

Market size is expected to be USD $34 billion by 2024, with CAGR of 20% during 2018-2024.
Market size in 2019, can be found as:
Market size in 2023, can be found as — 2024 market size — (2024 market size * CAGR) = $34 billion — ($34 billion * 0.2) = USD $27.2 billion
Market size in 2022, can be found as — 2023 market size — (2023 market size * CAGR) = $27.2 billion — ($27.2 billion * 0.2) = USD $21.76 billion
Market size in 2021, can be found as — 2022 market size — (2022 market size * CAGR) = $21.76 billion — ($21.76 billion * 0.2) = USD $17.408 billion
Market size in 2020, can be found as — 2021 market size — (2021 market size * CAGR) = $17.408 billion — ($17.408 billion * 0.2) = USD $13.92 billion
Market size in 2019, can be found as — 2020 market size — (2020 market size * CAGR) = $13.92 billion — ($13.92 billion * 0.2) = USD $11.136 billion
Market size of Wireless Headsets in 2019 is — USD $11.136 billion with CAGR of 20%.

Calculations for Market Share of Wireless Speakers:

Market size is expected to be USD $27 billion by 2023, with a CAGR of 17% during 2018-2023 
Market size in 2019, can be found as:
Market size in 2022, can be found as — 2023 market size — (2023 market size * CAGR) = $27 billion — ($27 billion * 0.17) = USD $22.41 billion
Market size in 2021, can be found as — 2022 market size — (2022 market size * CAGR) = $22.41 billion — ($22.41 billion * 0.17) = USD $18.6 billion
Market size in 2020, can be found as — 2021 market size — (2021 market size * CAGR) = $18.6 billion — ($18.6 billion * 0.17) = USD $15.438 billion
Market size in 2019, can be found as — 2020 market size — (2020 market size * CAGR) = $15.438 billion — ($15.438 billion * 0.17) = USD $12.81 billion
Market size of Wireless Speakers in 2019 is USD $12.81 billion with CAGR of 17%

Calculations for Market Share of In-Home Speakers:

Market size is expected to be USD $19 billion by 2023, with CAGR of 31% during 2018-2023.
Market size was USD $2.2 billion in 2017, with CAGR of 38.7% during 2018-2023.
Market size in 2019, can be found as:
Average CAGR = (31 + 38.7) / 2 = 34.85
Market size in 2018, can be found as — 2017 market size + (2017 market size * CAGR) = $2.2 billion — ($2.2 billion * 0.3485) = USD 2.97 billion.
Market size in 2019, can be found as — 2018 market size + (2018 market size * CAGR) = $2.97 billion — ($2.97 billion * 0.3485) = USD $4 billion.
Market size of Smart or In-Home Speakers in 2019 is USD $4 billion with CAGR of 34.85%
Calculation of market sizes as percentage of total for 2019:
Percentage share of Wireless Headsets =(Market size of Wireless headsets / Market size of audio equipment industry) * 100 = (USD $11.136 billion / USD $224.78 billion) * 100 = 5.054%
Percentage share of Wireless Speakers =(Market size of Wireless speakers / Market size of audio equipment industry) * 100 = (USD $12.81 billion / USD $224.78 billion) * 100 = 5.699% = 5.7%
Percentage share of In-Home or Smart Speakers =(Market size of Smart speakers / Market size of audio equipment industry) * 100 = (USD $4 billion / USD $224.78 billion) * 100 = 1.78%

Sources
Sources

From Part 01
From Part 04
From Part 05
Quotes
  • "growth in true wireless, voice technology, noise cancelling and an overall improvement in the durability and quality of headphones will encourage growth in prices throughout the forecast period."