Menu
Has the Apple Watch recorded $1 billion revenue in 87 days?

Has the Apple Watch recorded $1 billion revenue in 87 days?

Here’s what the industry knows based on past performance.

While the industry didn’t expect Tim Cook to bare all with the Apple Watch sales, there were some indications in the quarterly earnings call that shed some light on the wearable’s performance.

Although the Watch revenue has been part of the Other Products category, Cook did mention that “it would not be an inaccurate thing to look at the sequential revenue, the year-over-year change and assume that was the total watch revenue.”

Apple CFO Luca Maestri clarified this by stating that “the contribution from Apple Watch accounted for well over 100 percent of the growth of the category”, thanks to declining sales of the iPod and accessories.

Quite apart from being bad news from those betting on a success for Beats headphones, Juniper devices analyst James Moar believes that these comments give an indication of overall sales.

Depending on the average selling price of Apple Watch the y-o-y revenue increase, according to Moar, indicates between 1.5 and 2.5 million units.

Maestri also remarked that the Watch has sold more than the first iPhone or the iPad in a comparable period - that is 87 days. Moar says the first iPad was the better selling of these two, and sold two million in 60 days.

Given the above, Moar assumes there have been more than two million Watch sales so far.

“How much higher depends on how much Other Products revenue shifted from other accessories to the Watch,” Moar observes.

Here’s what the industry knows based on past performance:

• The segment has been on a y-o-y decline of approximately $200 million until the Apple Watch launch

• If we assume a similar decrease this quarter, Watch revenue was approximately $1 billion

• This figure only results in more than 2.5 million units if the Apple Watch Sport has a 75 percent or greater share of the product line’s revenue

• With reports that the $10,000+ Apple Watch Edition has sold out in China, this is unlikely to be the case

“These figures mean that Apple Watch sales to date are most likely between 2 and 2.5 million,” Moar adds.

“This makes it the most successful smartwatch launch to date, with no other launches coming close in a comparable time period.

“However, despite buyers being satisfied with the device, we continue to see that the product is running out of steam. We would also expect a decline in sales following launch, especially as H1 draws to a close.

“This means we are unlikely to see more than 7 million Apple Watches sold by the end of 2015, even with a boost to sales over the Christmas period.”

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags AppleJuniper ResearchApple watch

Featured

Slideshows

Educating from the epicentre - Why distributors are the pulse checkers of the channel

Educating from the epicentre - Why distributors are the pulse checkers of the channel

​As the channel changes and industry voices deepen, the need for clarity and insight heightens. Market misconceptions talk of an “under pressure” distribution space, with competitors in that fateful “race for relevance” across New Zealand. Amidst the cliched assumptions however, distribution is once again showing its strength, as a force to be listened to, rather than questioned. Traditionally, the role was born out of a need for vendors and resellers to find one another, acting as a bridge between the testing lab and the marketplace. Yet despite new technologies and business approaches shaking the channel to its very core, distributors remain tied to the epicentre - providing the voice of reason amidst a seismic industry shift. In looking across both sides of the vendor and partner fences, the middle concept of the three-tier chain remains centrally placed to understand the metrics of two differing worlds, as the continual pulse checkers of the local channel. This exclusive Reseller News Roundtable, in association with Dicker Data and rhipe, examined the pivotal role of distribution in understanding the health of the channel, educating from the epicentre as the market transforms at a rapid rate.

Educating from the epicentre - Why distributors are the pulse checkers of the channel
Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Show Comments