During the holiday quarter of 2019, Apple’s wearable devices surpassed Macs in terms of revenue. This is the first time Apple’s smartwatches and AirPods outsold Macs.
Apple just had a bumper quarter, making revenues of more than $1 billion every single day of those three months. But that’s not the most surprising fact that emerged from today’s earnings call. If you look closely, the iPhone maker managed to sell $10 billion worth of wearable devices (up by 37% year-over-year), compared to $7.2 billion in revenue from Macs.
Analysts and investors were worried after Apple went through a slump last year, especially with regards to iPhone sales, something that has been the primary driver of growth for the past decade. However, the company focussed on services such as App Store, Apple Music, and iCloud. However, Apple saw increased sales of iPhones, and the record revenue from the wearables segment was like the cherry on top of the cake.
During the last quarter, Apple’s iPhone 11 series did quite well compared to the previous year. Tim Cook said that the iPhone 11 was the best-selling phone every week during the period. This was mostly due to the iPhone 11’s reduced price compared to the launch price of the iPhone XR. Plus, all the new iPhones offered improved cameras and battery life.
When it comes to the growth of the company’s wearable devices, both Apple Watch and AirPods did exceptionally well in all five geographic regions. According to the earnings call, over 75% of Apple Watch buyers are new. AirPods have been smash hits as well with customers. Apple had a tough time shipping enough AirPods Pro, and Tim Cook said that the company is “working very hard to put in additional capacity.”