Wearables, home, and accessories to be precise…
What you need to know
- Yesterday, Apple published record-breaking results for Q1 2020.
- One standout metric was wearables, which passed Mac in revenue for the first time ever.
- Wearables, accessories, and home brought in $10 billion, compared to $7.2 billion for Mac.
Yesterday, Apple announced it’s bumper Q1 2020 results, posting its highest-ever revenue for a single quarter, a casual $91.8 billion.
The results were staggering for a number of reasons, but one of the most interesting facets is that Apple’s wearables sector, specifically wearables, accessories and home, has passed Mac revenue for the first time ever.
It’s no secret that Apple’s days as a “computing company” are behind it, Apple has really been a phone company for at least the last 10 years. However, the iPhone market has stalled somewhat recently, as device longevity increases and the market saturates. In recent months Apple has continued to shift its focus towards its services like Apple Music and TV+, as well as its wearables sector, driven mainly by Apple Watch and AirPods.
Q1 2020 marked the first time that wearables revenue surpassed Mac. From the earnings call transcript:
Next, I’d like to talk about Mac and iPad. Mac revenue was 7.2 Billion and iPad revenue was 6 billion. Both products had a difficult year over year comparison, due to the launches of MacBook Air, Mac Mini, and iPod Pro during the December quarter a year ago and the subsequent channel fill. Despite the tough comparison on a demand basis, our performance for both Mac and iPad was around even to last year. Importantly, around half of the customers purchasing Macs and iPads around the world during the quarter were new to that product, and the active installed base for both Mac and iPad reached a new all-time high…
Wearables, home, and accessories established a new all-time record with revenue of 10 billion up 37% year over year with very strong double-digit performance across all five geographic segments and growth across wearables, accessories, and home. We set all-time records for wearables in virtually every market we track, even as we experience some product shortages due to very strong customer demand for both Apple Watch and AirPods during the quarter.
In Q1, Apple says it set records in “virtually every market we track”, and its wearables revenue is up a whopping 37% year over year, enjoying double-digit growth in all five geographic regions. The growth in part is down to new customers, 75% of Apple Watch customers are new, an insane amount when you think about it.
Q1 2020 has shown that Apple has successfully diversified its revenue streams and that its wearables segment continues to be a smash hit. Whilst taking questions, Cook said that Apple simply couldn’t predict when AirPods Pro supply might balance out with demand, stating they were “substantially off there” and “working very hard to put in additional capacity”.
Source of the article – iMore