AirPods 3 to adopt SIP chip solution, similar to AirPods Pro Big changes for AirPods.

Apple will switch its AirPods to a complex system-in-package chip solution for its upcoming third generation, which will replace the current surface mount technology the device uses.

According to a report from Ming-Chi Kuo, Apple has made the change so it can pack more components into a smaller space. The company’s AirPods Pro, for example, introduced a SIP design featuring an H1 chip that can handle audio, Siri, noise-canceling, and more.

By switching to chip packaging technology in the upcoming third-generation AirPods in 2021, Apple could “trickle-down” some of the more advanced features from the AirPods Pro into the more affordable AirPods, encouraging consumers to upgrade to the latest generation.

It is also expected that the third generation AirPods will transition to the AirPods Pro design, which helps to reduce the form factor of the device and ultimately cut production costs.

Apple was previously rumored to be launching a new version of AirPods in time for the next iPhone release in September, but the earphones are now expected to ship in the first half of 2021.

Because of this, AirPods 2 and AirPods Pro will have another holiday season to drive sales and help Apple shift more stock, in a tumultuous year for the Cupertino tech giant.

Insiders suggest that companies such as Amkor, JCET, and Huanxu Electronics will be enlisted to manufacture parts for the new AirPods, alongside Shin Zu Shing.

Varta and Sunwoda Electronic will also supply button cell batteries for the AirPods 3 earphones.

What’s interesting to note that is that experts predict, in 2021, that AirPods shipments will slow, growing around 28% year-over-year.

This year, AirPods are expected to grow 65.1%, as Apple is expected to discontinue free EarPods in new iPhones, as well as SEs and iPads.

Are you excited for the third-generation of AirPods? Let us know on Twitter and check back soon for more news and rumors on everything Apple, every week.

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Everything Apple, every day. This post was written by an AppleMagazine newsroom writer.