Apple is working on its third-generation AirPods and a new report has revealed the renders that show what the third generation of the consumer-grade TWS earbuds may look like.

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The design is in line with the previous render leaks, resembling the design of the AirPods Pro.

"It appears that the AirPods 3 will have a shorter stem and come with replaceable ear tips, similar to what we have seen with the company's AirPods Pro," reports GizmoChina.

The third-generation AirPods will feature the same design as the current AirPods Pro with Apple's H1 chip, at the core housed in a new system in a package (SiP) enclosure.

A South Korean supplier is developing the AirPods' new SiP used for the H1 chip, which is said to be a "simple square shape," in contrast to the AirPods Pro SiP, which is "round-shaped like a mouse."

In terms of pricing, new AirPods may be 20 per cent cheaper at launch than the current AirPods Pro's $249.

In addition, quality tests for the new AirPods' system-in-package (SiP) are reportedly starting before the end of this year while their production is expected to start in early 2021.

Rumours that Apple is working on third-generation AirPods for launch in the first half of next year first surfaced in April last year in a note to investors by Apple analyst Ming-Chi Kuo.