Apple's wearables business swells to $5.1B in Q2, about 75% of Apple Watch buyers were new...

Posted:
in Apple Watch edited April 30
One highlight from Apple's financial results was that its "Wearables, Home, and Accessories" business hit a Q2 record, racking up $5.1 billion in revenue.

Apple Watch Series 4 and AirPods


The figure is an increase versus $3.94 billion in Q2 2018, the company said. CEO Tim Cook commented that the company's wearables segment is now the size of a Fortune 200 company, while CFO Luca Maestri noted that wearable sales rose 50% year-over-year.

Some three-quarters of Apple Watch sales were to new customers, the company claimed. While Apple has an iPhone install base numbering in the hundreds of millions, many people have likely skipped the Watch, leaving room to grow.

Company-wide Apple amassed $58 billion in revenue -- a 5% decline versus $61.1 billion in Q2 2018, but not as bad as some analysts had feared. The worst hit affected the iPhone, down to $31 billion from $37.6 billion a year ago.

Buoying Apple somewhat were not just wearables, but strong iPad and services streams. It's unknown to what extent Apple TV and HomePod sales helped, but neither are thought to be blockbuster products.

Included in the wearables category are AirPods and Beats headphones. Second-generation AirPods were launched in March, but likely too late to have a material impact over first-gen sales.



Comments

  • Reply 1 of 4
    SpamSandwichSpamSandwich Posts: 31,319member
    A nice jump there. “Apple Vision” glasses are probably not too far off.
    watto_cobra
  • Reply 2 of 4
    StrangeDaysStrangeDays Posts: 8,298member
    This is quite huge. Watch, once a billion dollar business (making it an instant success), is now five times that. 
    watto_cobra
  • Reply 3 of 4
    felix01felix01 Posts: 248member
    @ "Some three-quarters of Apple Watch sales were to new customers, the company claimed."

    I wonder how Apple came up with that percentage? Just a convenient WAG? Because I don't recall being asked during the purchase/registration process whether this was a first-time Apple Watch purchase. 
  • Reply 4 of 4
    nicholfdnicholfd Posts: 36member
    felix01 said:
    @ "Some three-quarters of Apple Watch sales were to new customers, the company claimed."

    I wonder how Apple came up with that percentage? Just a convenient WAG? Because I don't recall being asked during the purchase/registration process whether this was a first-time Apple Watch purchase. 
    Because your Apple Watch is linked to your iPhone.  It's pretty easy to know if the Apple ID used on the iPhone has ever had an Apple Watch associated with devices using that Apple ID...
    steveauwatto_cobra
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