Hearing tech specialist, Nuheara (ASX:NUH), has just commenced mass production of the HP Elite Wireless Earbuds.

The production is part of the three-year supply agreement the company signed with global giant Hewlett-Packard (HP), back in December last year.

This will be the first HP-branded product manufactured by Nuheara, and will initially be offered as a bundled option for customers buying HP notebooks.

Following HP’s approval of its production line samples, Nuheara will now commence manufacturing, and expects the first shipment to be made to HP in early May 2021.

The company said the co-development of this product has seen it go from concept to production in record time, and anticipates further product developments with HP.

“As global leaders in our respective markets of PCs and hearables, Nuheara anticipates the strengthening of this partnership over the next three years to continue the supply of innovative audio solutions to HP’s customers,” said Nuheara CEO, Justin Miller.

The HP deal

The deal struck with HP in December was a three-year umbrella agreement, with automatic renewals for successive one-year periods.

In the deal, Nuheara is obliged to manufacture HP branded products – which includes the whole scope of design, manufacture, and supply of multiple products throughout the life of the contract.

As announced in December, the initial product pipeline was actually the True Wireless Earbud, which would carry a Nuheara co-brand, and was to be shipped in the first quarter of 2021.

Following the HP agreement, Nuheara completed an $11.5 million capital raise through a share placement to institutional investors.

The IQbuds technology

Nuheara’s flagship is its wireless earbuds, IQbuds, which allow consumers to augment hearing according to their personal hearing preferences, and connect hands-free with their voice-enabled smart devices.

The original version, the IQBuds2Max, was received extremely well since launching. The company reported record sales of 1,949 IQbuds2 Max units in November, and new sales orders of 3,696 units for the quarter. Around 80 per cent of the sales were made overseas, with 50 per cent coming from the US.

Alongside IQbuds2 MAX, the IQbuds2 PRO is the second product derived from the IQbuds2 technology platform.

In March, the PRO version obtained a US FDA (Foods and Drugs Administration) Class 2 registration and medical device listing. This classification meant there was no requirement to conduct clinical trials prior to selling in the open market.

The IQbuds line was also made in collaboration with HP, and was initiated back in August last year.

Meanwhile, Nuheara announced a massive 406 per cent increase in invoiced revenues to $6.9 million for the first half of 2021.

Its share price has surged by over 150 per cent in the last 12 months to trade at 5c today.

 

Nuheara share price today:

 

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