Neodymium magnets have replaced marginally weaker and significantly more heat-resistant samarium-cobalt magnets in most applications, due mainly to their lower cost.

Used for stabilization and angular head motors in computer hard drives, neodymium magnets are also popular with hobbyists, and a small magnet can have amazing properties — it exhibits magnetic braking when moved near a non-magnetic metal due to induced eddy currents. An excellent demonstration for students to see the effects of Lenz’s Law in non-ferrous metals may be performed by dropping a strong neodymium magnet through a copper pipe. The magnet will travel through the pipe remarkably slowly as it falls. The effect may be greatly enhanced by immersing the pipe in liquid nitrogen (thus increasing its conductivity even further) prior to dropping the magnet through.

A somewhat larger magnet interacts strongly enough with the magnetic field of the Earth to allow its tendency to align with that field to be perceived directly when holding it, essentially forming a compass. Cylinder- and disc-shaped neodymium magnets are especially responsive to the Earth’s magnetic fields. Neodymium magnets are used for the transducers in many headphones. Neodymium magnets manufacturer are becoming increasingly common in loudspeakers for high-volume sound reinforcement applications.