During its quarterly conference call for the fourth quarter of 2014, Apple announced it will introduce new financial reporting methods that lump Apple Watch and iPod with Apple TV and other accessories, with CEO Tim Cook suggesting the move is a good way to shield details on the upcoming smartwatch from competitors.
According to Apple's comments, the anticipated Apple Watch will be lumped together with iPod, Apple TV and accessory sales from Beats in a new category called "Other" when the company reports its financials in the first quarter of 2015. Major product lines like the iPhone, iPad and Mac will continue to be reported as separate categories.
While the exact method of reportage remains to be seen, at this point it seems Apple will not break out initial Apple Watch sales numbers.
The iPod product line has apparently lost its place at the table after entering free fall with the introduction of the iPhone in 2007. While strong, Apple TV sales are also not being moved in numbers significant enough to break out sales into its own segment.
"It says nothing about our expectations about the product," Cook said, adding that things could change in the future. "I'm not very anxious in reporting a lot of numbers on Apple Watch and giving a lot of detail because competitors look for it."
In addition, retail sales are to be combined with regional sales, meaning the current Retail segment breakout is going away. Apple also intends to incorporate Apple Pay into the Services category, alongside iTunes, software and other services.
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Tim's not dumb, this is a smart thing to do. It'll sell well to early adopters, but it will be a year or two before it really takes off, I suspect. I'd be stunned to see an iPad-esque rate.
Cook says Apple is in no hurry to provide Watch details because all their competitors are looking for it. I love it. :D
[quote name="TheWhiteFalcon" url="/t/182941/apple-may-not-break-out-apple-watch-ipod-and-retail-sales-starting-q1-2015#post_2623646"]Tim's not dumb, this is a smart thing to do. It'll sell well to early adopters, but it will be a year or two before it really takes off, I suspect. I'd be stunned to see an iPad-esque rate.[/quote] Could it also mean Apple has more things planned in this space (perhaps with Beats or home automation or additional wearables) so it becomes one big category for a lot of different things?
They need to classify the Apple Watch as a "hobby"
Smart move.