advertisement
advertisement

Apple Probably Sold Around $1 Billion In Apple Watches Last Quarter

Apple painted a promising future for its Watch, with sales up 50% from last year, even though, as usual, it declined to give actual unit numbers.

Apple Probably Sold Around $1 Billion In Apple Watches Last Quarter
[Photo: courtesy of Apple]

One of the nice little surprises in Apple’s earnings report yesterday was that Apple Watch sales were up 50% over the June-ending quarter last year.

advertisement
advertisement

But as usual, Apple provided no actual numbers–unit sales or revenues–to show how well the product is actually being accepted by mainstream consumers. We’re left to piece the rest of the story together.

Apple Watch sales are reported as part of a larger Apple category called “other products,” which includes things like AirPods, Apple TV, iPods, Beats gear, and Apple accessories. The whole category brought in $2.74 billion in the June-ending quarter, up 23% from last year.

Growth in Apple Watch sales is very likely the key driver of the growth of the category.

Creative Strategies analyst Ben Bajarin estimates that Watch sales were between 2 million and 3 million units during April, May, and June. Neil Cybart, an analyst for Above Avalon, says Tim Cook’s commentary implies that Apple sold approximately 2.7 million Apple Watches in the quarter.

Cybart also derives an average selling price for Apple Watch by estimating the sales breakdown by Watch series. That, he says, suggests around $1 billion in Watch revenue for the quarter.


Related: With Its New OS, The Apple Watch Might Finally Free Us From Our Phones

advertisement

The Watch has begun to move up the mainstream adoption curve since Apple began to position it as a health and fitness device last year. It also may have helped that the first-edition Watch can now be had for $269. (The most expensive Watch goes for $1,500.)

Cook hinted at future developments when he recapped the company’s recent announcement about watchOS 4, which includes, said Cook, “a proactive Siri Watch face, personalized activity coaching, and an entirely new music experience. watchOS 4 also introduces GymKit, a groundbreaking technology platform to connect workouts with cardio equipment.”

Here’s hoping that as the Watch moves toward the mainstream, Apple will begin to give investors (and journalists) a better idea of the actual market penetration of the product. It’s about time. The numbers suggest the Watch is no longer a novelty or an accessory, but a real product that may someday soon be a “can’t-leave-home-without-it” accessory.

advertisement
advertisement