The upcoming noise-canceling headphones will reportedly launch as early as the end of this year but could be facing development problems that would force it back into 2019.
Apple has not released AirPods' exact sales numbers; the product has been lumped in with Apple Watch and other products in the "Other Sales" category. Although the company plans to release the headphones as early as 4Q18, the site notes that there have been setbacks.
The report says that Apple has struggled with the design of the headphones.
As a result, these Apple-branded headphones may cannibalise sales from another wing of the company, though it's likely that the new addition to Apple's lineup may serve as a general product for everyone while Beats specialises in catering to the varied needs of different types of buyers.
Apple's headphone ambitions put it in a collision course with already-popular brands like Sony, Samsung, and Sony - and Apple's own Beats by Dre.
These Apple-branded headphones could also cannibalize Beats headphones, although Beats manages to sell lower-priced wireless headphones that probably won't directly compete with the new product.
Apple previously discarded the Beats Music streaming name when it launched Apple Music in 2015.
How much the new headphones will cost is still unknown, but Bloomberg and KGI's emphasis on Apple's "high-end" ambitions suggests they will not come cheap.
Pricing will be key for the new Apple headphones.
Alongside noise-cancellation, Apple is also said to be incorporating the wireless pairing technology found on the AirPods. Beats and Bose both charge $350 for their high-end wireless headphones, while Sennheiser prices range from $100 all the way to $500.
If they are anything similar to the Airpod, except consumer pandemonium and long waitlists once these headphones make their retail debut.