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Apple’s wearables show strong growth amid fledgling iPhone sales

Apple’s wearables showed strong growth during the all-important holiday quarter, along with Macs, iPads and its services category. This, however, more than offset by the 15% drop in revenue for the iPhone. Overall, the company’s financial results showed a 5% year-on-year decline in revenue to $84.3bn.

Essential readingTop fitness trackers and health gadgets

Apple does not break down figures for Apple Watch sales. Instead, it slots them into the “Wearables, Home and Accessories” category. This also includes HomePod, Apple TV, AirPods, Beats products, iPod touch, and Apple-branded and third-party accessories.

Between October 1st and December 31st, 2018, this group of products brought in a record $7.3bn, up 33% on the year-ago quarter. The category overtook the $6.7bn generated by iPad sales (up 17%) and is closing in on Macs which brought in $7.4bn (up 9%) during the period.

The services category has been the other star performer, increasing 19% to an all-time high of $10.9bn. This includes iTunes, the App Store, Apple Music, iCloud, Apple Pay, and AppleCare.

“While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter’s results demonstrate that the underlying strength of our business runs deep and wide,” said Tim Cook, Apple’s CEO.

“Our active installed base of devices reached an all-time high of 1.4 billion in the first quarter, growing in each of our geographic segments. That’s a great testament to the satisfaction and loyalty of our customers, and it’s driving our Services business to new records thanks to our large and fast-growing ecosystem.”

It’s safe to say the Apple Watch has been selling well in recent months. The Cupertino outfit launched the Series 4 version in September, but sales of the older watches have also been flying off the shelves. Earlier this month, Tim Cook told CNBC that revenue for wearables is already “50% more than iPod was at its peak.”

This is unlikely to change any time soon. Sales of desktop computers and tablets are on a decline, although unlike most other companies, Apple has been able to hold on to some growth. But its clear the company will be relying on revenue from its wearables category to drive growth in the coming years. It will also be looking to its services category which is now larger than the iPad and Mac categories.

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