iPhone has got its biggest competitor, but why Apple is not worried

Two of Apple's most-popular gadgets -- iPhone and iPod -- seem to have finally got competition. But Apple does not have much to worry. For, the competition comes from its very own True Wireless earbuds -- AirPods.
According to a recent report from Strategy Analytics, Apple AirPods sales grew almost 100% year-on-year during 2019. The report further estimates that AirPods shipments hit 60 million during the year.Another impressive figure is the market share: AirPods are estimated to take over 50% of the global shipment of true wireless (TWS) headsets. And, as is the case with iPhone and Apple's other products, the report adds that AirPods took home a disproportionately high 71% of worldwide revenue of TWS sales.
Incidentally, the TWS category saw a blazing 202% growth in the year.
Little doubt then that thanks to AirPod sales, Strategy Analytics report sees Apple's non-iPhone revenues soaring.
Coming to iPod, Apple was expected to sell $4 billion worth of AirPods in the 2019 holiday quarter, beating peak iPod revenue. A research note from Asymco published recently says, "Looking forward to the next quarter, I am expecting a 51% increase y/y for Wearables and 24% growth in Watch. This results in a Watch revenues about $5.2 billion and non-Watch $5.7 billion. Now if we assume $1.7 billion for non-Watch-non-AirPods (i.e. Apple TV, HomePod, Beats, iPod, other) then this quarter AirPods will have overtaken peak iPod."
Apple too is reported to be gearing to meet the strong demand of AirPods. Last month Nikkei reported that the company has doubled the production of AirPods per month. The report quoting supply chain sources in China claims that Apple has doubled AirPods Pro orders from 1 million to 'at least' 2 million units per month.
Apple launched AirPods in 2017. Last year, the company launched two new models of AirPods -- AirPods 2 and AirPods Pro.