Deal Alert : Sony Noise Cancelling Headphones WH1000XM2 for $298 at Amazon

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Like the AirPods and the new smart home speaker HomePod, Apple is aiming the unannounced headphones to be priced for the high end of the market.

People who are supposedly familiar with the product's development told Bloomberg that the new earphones could arrive by the end of the year, though that is not set in stone.

Apple launching its own line of headphones sounds like a risky proposition, given that the company already owns Beats, a hugely successful brand that produces several types of headphones, including over-the-ear models. Whatever the company is cooking up in the headphone space will likely have a premium look to it, especially with Apple targeting audiophile-grade performance. However, unlike what some might expect, they won't be from Beats by Dre, a subsidiary of Apple.

AirPods have seemingly been a big success story for Apple. If the latest reports are to be believed, Apple is looking at introducing noise-canceling, over-the-ear headphones that rival headsets from established brands including Bose and its own Beats by Dre brand. Beats is one of the leading brands in the headphone market, alongside Bose, Sennheiser, Sony, and Skullcandy. Beats Music eventually became Apple Music. The said headphones are speculated to be targeted at the high-end of the market with features such as wireless pairing.

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Pricing will be key for the new Apple headphones. Because Beats sell at a broader price range from $100 to $350, the new Apple headphones may not cannibalize Beats' margins, according to Bloomberg.

Apple's cost for each $349 HomePod is $216, resulting in thinner profit margins than typical Apple hardware products, according to TechInsights.

The report says that Apple has struggled with the design of the headphones.

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