Hearing aid makers slip after Apple rolls out hearing aid features, analysts shrug off threat

Shares in European hearing aid makers slipped in early trading on Tuesday after Apple rolled out hearing aid features.
Apple said its AirPods Pro 2 could now be “transformed” into a personalized hearing aid via an upcoming software update that would boost specific sounds in real time, including parts of speech or elements within a user’s environment.
Shares in Italy’s Amplifon dropped as much as 7.2 per cent earlier in the session and were down 5.7 per cent by 0845 GMT. Other hearing aid makers, Sonova, Demant and GN Store Nord, fell between 2 per cent and 4 per cent.
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.
Still, analysts said the news could be a positive development for the hearing aid industry, as it also raises awareness of the hearing deterioration problems.