While Apple Inc’s iPhone 16 line will be the focus of its product launch event on Monday, its slumping wearable-device business is poised to get a boost as well.

For the first time since the end of 2022, the company will unveil major changes to the Apple Watch and AirPods earbuds. All three versions of the smartwatch – the SE, standard Series line and Ultra – will get upgraded. And the two lower-end AirPods models will get the most significant update in their history.

A lack of recent upgrades has weighed on sales of Apple’s wearables division, which also includes home products and accessories. The unit’s revenue is poised to decline for the second year in a row during fiscal 2024, which runs through September. But analysts expect the category to bounce back in 2025 with a 6.2% revenue gain to $39.5 billion (R708bn).

Two years ago, Apple released the first Ultra watch – a bulkier, higher-end model – raising the overall average selling price of the line-up. That year, it also unveiled the second-generation version of the AirPods Pro, another upscale model. That created a tough sales comparison last year when Apple didn’t release a major AirPods update and rolled out only minor tweaks to the Apple Watch.

That’s why Monday’s event is a key moment for the wearables business. The Apple Watch Series 10 – the mid-level version – will get a new look, with larger displays packaged into a thinner design. The entry-level AirPods will be redesigned and include a version with active noise cancellation – something previously only found on the AirPods Pro.

By bolstering Apple’s more affordable AirPods, the company could attract new customers to the line-up. In the same vein, the company is planning a revamped low-end Apple Watch SE, a model priced at $230.

Fresh momentum from the Apple Watch and AirPods would help offset slow sales elsewhere. The new Vision Pro headset, also part of the wearables segment, hasn’t been a major hit for Apple since its launch in February. The category also includes the Apple TV set-top box, HomePod speaker and Beats headphones.

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