Apple's AirPods 3 could look like the AirPods Pro thanks to a system-in-package (SiP) solution that allows for smaller, smarter buds.

MacRumors reports that Ming-Chi Kuo's latest note to investors suggests that the next Apple buds will be more compact than last year's AirPods. Like the premium-level AirPods Pro, the new entry-level AirPods could be condensed with the help of the SiP chip system.

This is not the first time we have heard that the iconic AirPods will be redesigned to more closely resemble the AirPods Pro; in fact, Kuo said a few weeks ago that it would. But now we know how Apple will achieve the smaller size.

SiP technology allows devices like smartphones and smartwatches to pack a great deal of computing functionality into a compact housing. Just as the best wireless earbuds push the limits of functionality, manufacturers are turning to SiP systems to maximize the potential of such small products.

Apple employed the SiP system in the AirPods Pro, which offers active noise cancellation and advanced gesture control; we may not see these features in the AirPods 3, but we can at least expect a shorter case and stem.

Apple's fall launch of the AirPods 3 along with the iPhone 12 (no EarPods included) and Apple Watch 6 is well timed, but Kuo expects the AirPods 3 to arrive in the first half of 2021, with a price point of under $200. It is likely that the AirPods 3 will replace the AirPods 2 in stores as well.