Apple wearables continue to be a success and the CEO of the company, Tim Cook has announced that it had a record-breaking quarter. The wearables division has generated more revenue than the Mac for the first time. Cook highlighted a 72,000 crores INR revenue in the ‘Wearables, Home & Accessories” category, in the company’s Q4 earnings report. The most scoring ones were the Apple Watch and Apple AirPods. “Both AirPods and Apple Watch were must-have gifts, helping drive unprecedented results for the category”, Cook said. It was not clear from the figures provided by Apple in its earnings call on which device was leading in generating more revenue.
But certain hints were left by Cook like Apple couldn’t pump out enough models of certain devices to meet the demand over the holidays. From this, we derive that it is either an insight into the popularity of Apple AirPods Pro or an indicator that the Apple Watch Series 3 was the champ with its price, 24,000 INR. This price was announced after the release of the Series 5 in September. The Apple wearables growth is not precisely slow and steady. The demand for them is accelerating and it is speeding up quite fast. In July, the company had announced that the wearable division’s revenue was equivalent to a Fortune 200 company. This was updated by Cook again after the Q4 earnings, stating that it is now generating the revenue of a Fortune 150 company. This means that the wearable wing of Apple is creating roughly 1,44,000 crores INR per year for the company, which is still only a fraction of what the iPhone contributes. These figures also show a 37% year-on-year growth. It is only a matter of time before the wearables overtakes the Mac in total revenue.
The growth of the wearables division indicates that the wearables are going to be the company’s second in line, the first being iPhone. Apple is attracting many new Apple Watch users. According to Cook, seventy-five percent of the units shipped during Q4 were for the first-time Apple Watch users. And the numbers are pretty large even though there is no Android support in an Apple Watch. If Cook does decide to open up the company’s smartwatch at some point in the future for Android support, expect the numbers of the all-encompassing wearables division to bloat even further.