Why are earbuds usually cheaper than headphones?

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Whether you're an audiophile or not, you likely have earbuds, headphones, or maybe both tucked in a drawer, tossed in your backpack or neatly stored on your desk. Having a way to privately listen to music, podcasts or the like in public has become a way of life. No one wants to hear your HR compliance videos blaring from your cubicle. You don't even have to listen to something to wear them — just ask anyone at the gym who's not in the mood for chit-chat. (Actually, don't do that. Just leave them alone.)

If you're in the market for a new pair, you might notice that earbuds tend to be cheaper than headphones. Cost is just one of a handful of factors that could influence your purchasing decision. At the moment, earbuds are popular. Data from market research firm Mordor Intelligence shows that true-wireless stereo earbuds accounted for 68.2% of revenue in the earbud and headphone market in 2025. The report noted that earbuds' portability and lightweight design, as well as improvements to the technology like battery life and spatial-audio rendering, could be contributing factors.

And while earbuds and headphones can both run the gamut in terms of quality and price, there are generally a few reasons earbuds are easier on your wallet.

Earbuds tend to be smaller and less complex to build than headphones, which translates into a smaller price tag. The components inside them might be cheaper based on size or materials used. Take the driver. Drivers are the components responsible for creating the sound you hear. They can determine loudness, but not necessarily sound quality. Larger drivers cost more, according to a blog post from Anker's Soundcore audio brand, and headphones tend to have larger drivers. Plus, there's just physically less to the earbud – no adjustable headband or padding around the earcups that could spike the price depending on how premium the materials used are.

Popularity is another factor. As more brands produce earbuds, pricing can go down based on product availability. In the quest to make more earbuds, some companies might use "off-the-shelf," or pre-made designs by Chinese factories, according to CNET, instead of designs created internally. Earbuds with fewer features will also cost less.

It should also be noted that there are other reasons why you might pick earbuds over headphones or vice versa. For some, portability is the biggest factor. Earbuds take up less space (and are perhaps easier to lose) than larger over-the-ear headphones. Some people prefer headphones because they're more comfortable for longer periods of time, or a better fit for their ears. 

Others might be more interested in the features that come with the different gadgets. While you can find earbuds with active noise-cancelling (ANC), the technology is generally not as effective as it is with headphones, and can be affected by how well your earbuds fit in your ears. ANC works by getting rid of the ambient, outside noises that might be invading your listening experience. It's not the same as noise isolation, which doesn't need power, but does need a secure seal in or over your ears to keep sound out.

So, if you're out for a more budget-friendly option that's easy to grab on the go, earbuds might just be the first device you check out.