Andrew O'Hara
During Apple's first quarter earnings call on Tuesday, Apple CEO Tim Cook touted a new all-time revenue record set by its wearable business driven by strong demand for Apple Watch and AirPods.
The wearables category hit $10 billion this quarter, up from $7.3 billion a year ago, with both Apple Watch and AirPods setting new all-time revenue records for the company. The segment also includes Beats headphones as well as HomePod.
More than 75 percent of Apple Watch buyers were new to Apple Watch. In another first, wearables now has overtaken Mac revenue and is the size of a Fortune 150 company.
The major uptick in revenue arrives in spite of supply constraints for both the Apple Watch Series 3 and the recently launched AirPods Pro. Cook in a conference call Tuesday said Series 3 supplies should return to balance soon, but could not give an estimate on AirPods Pro, saying the situation is "fairly substantially off."
"We set to new records in wearables in nearly all markets we track," said Apple CFO Luca Maestri during the conference call.
Apple's wearable category growthBe sure to check other notes of interest from Apple's first quarter 2020 results.
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3 Comments
I think the remarkable thing about the stock constraints on the Airpods Pro is that Apple made a huge effort to preload their stores and supply chain prior to launch. Yet they sold through that inventory immediately and still can't keep up with demand a month after the holiday season.
It's remarkable how Apple is dominating their respective markets. I bought an Applewatch last year and truth be told, it now gathers dust in the desk drawer. It's just not for me. I tried and tried but could not make a case for using it.