Hearing Aid Makers Experience Market Dip as Apple Introduces New Features for AirPods Pro 2

Written By : Leah De-Graft Takyi

In a significant shift within the hearing aid market, shares of leading European hearing aid manufacturers faced a downturn on Tuesday following Apple’s announcement of new hearing aid capabilities for its AirPods Pro 2. The tech giant revealed that an upcoming software update would enable users to transform their AirPods into personalized hearing enhancement devices, capable of amplifying specific sounds in real-time, including speech and environmental noises.

The news sent shockwaves through the hearing aid sector, with shares of Italy’s Amplifon (AMPF.MI) plummeting as much as 7.2% in early trading, eventually settling down 5.7% by 0845 GMT. Other notable players in the industry, including Sonova (SOON.S), Demant (DEMANT.CO), and GN Store Nord (GN.CO), also experienced declines, with stock prices falling between 2% and 4%.

Despite the immediate market reaction, analysts are largely dismissing the potential threat posed by Apple’s innovations. A note from Jefferies emphasized that the introduction of over-the-counter (OTC) hearing aids, such as those offered by Apple, primarily targets a different demographic than traditional prescription-based devices. According to the analysts, OTC devices do not compete on the same technological or service levels as prescription hearing aids, which are designed for individuals with more severe hearing impairments.

“The level of fitting provided by OTC devices does not meet the needs of those with significant hearing loss,” noted analysts from Vontobel. “These devices are generally utilized by individuals with mild hearing issues, which means the core market for prescription hearing aids remains largely unaffected.”

Interestingly, while the immediate response from the market was negative, some analysts view Apple’s entry into the hearing aid space as potentially beneficial for the industry as a whole. By raising awareness about hearing loss and the importance of hearing health, Apple’s move could lead to increased conversations around hearing deterioration, ultimately encouraging more individuals to seek solutions.

As the conversation surrounding hearing health evolves, the hearing aid industry may find new opportunities to educate consumers about the differences between OTC devices and prescription hearing aids. Experts believe that highlighting the advanced features, personalized fitting, and professional support that come with traditional devices will be crucial in maintaining market share.

As consumers become increasingly aware of their hearing needs, the importance of professional guidance in selecting the right device will remain paramount. The ongoing dialogue about hearing health, spurred by Apple’s latest features, could ultimately lead to a more informed population, better equipped to address their hearing challenges.