Apple’s wearables category pulls in record quarterly revenue
Apple’s wearables businesses is booming. The company’s Q2 financial results show the category racked up some $5.1 billion in revenue.
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The figure grew 30% from $3.94 billion in the same period last year. Although not an all-time quarterly record, it is the highest ever value for the January to March period.
This is even more impressive when you take into consideration the fall in overall sales. Company-wide revenue declined from $61.1 in the first three months of 2018 to $58.1 million this year.
To be fair, the category includes more than just wearables. Apple calls it “Wearables, Home and Accessories”. This consists of things such as the HomePod, iPod touch, cases, covers, cables and more.
The Cupertino outfit does not break the category down but it’s safe to assume the bulk of income comes from Apple Watch sales. Second-generation AirPods were launched in March, so did not impact the jump in sales.
Astonishingly, wearables are now pretty much on par with iPad and iMac sales. The iPhone, of course, is the star performer pulling in more than half the company’s revenue. But smartphone sales are on the decline and the iPhone is no exception.
“Our March quarter results show the continued strength of our installed base of over 1.4 billion active devices, as we set an all-time record for Services, and the strong momentum of our Wearables, Home and Accessories category, which set a new March quarter record,” Apple CEO Tim Cook said commenting on the results.
“We delivered our strongest iPad growth in six years, and we are as excited as ever about our pipeline of innovative hardware, software and services. We’re looking forward to sharing more with developers and customers at Apple’s 30th annual Worldwide Developers Conference in June.”
A separate report out today shows the Apple Watch was the world’s most popular smartwatch by a significant margin. According to Counterpoint Research, it accounted for one in every three smartwatches shipped last quarter.
Encouraged by the financial results, investors sent Apple’s shares up. They are currently trading at $210.52, up a third on the start of the year.
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