Hearing aid makers slip after Apple transforms AirPods Pro 2 into hearing aids

Hearing aid manufacturers experienced a decline in their stock prices on Tuesday following Apple’s announcement of new hearing aid capabilities for AirPods Pro 2. Apple revealed that its AirPods Pro 2 can be customized to function as personalized hearing aids through an upcoming software update. The update will enable real-time amplification of specific sounds, such as speech or environmental elements, tailored to individual user preferences.

Reuters:
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Shares in Italy’s Amplifon dropped as much as 7.2% earlier in the session and were down 5.7% by 0845 GMT. Other hearing aid makers, Sonova, Demant, and GN Store Nord fell between 2% and 4%.

However, Jefferies analysts said in a note that Apple’s move was not a concern for hearing aid players as over-the-counter (OTC) devices target a different population.

OTC hearing aids do not compete against prescription-based devices on either technological or service levels, despite their attractive price points, Jefferies added.

“The level of fitting does not suffice the need for those, that have severe hearing aid problems and as such, OTC devices are mostly used for those with mild hearing aid problems,” analysts from Vontobel wrote in a note.

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MacDailyNews Take: Apple’s AirPods Pro 2 as hearing aids are likely to draw customers who either won’t pay or are fed up with paying exorbitantly high prices for hearing aids.