Some snippets from Cihra’s note to clients:
Apple has never been about going after a whole market’s unit share but rather peeling off the high-value tops for max revenue and profit share. It can then compound that by selling MORE into its “niche” installed-base of loyal, high-value customers. Apple has most recently been leveraging that model to grow its “Services” revenues, and we think “Other Products” (e.g., Watch, AirPods, HomePod) could be next, doubling from $11B in CY16 to $22B by CY19E.
Headlining, we estimate the Apple Watch accounting for 50% of Other Products revenue in CY18E, shipping nearly 22mil units (+26%Y/Y) for $9.5B to contribute 3.6% of Apple’s total revenue. But we believe new MUSIC accessories, which can also be seen as Siri access devices, look to be Apple’s fastest growing, including AirPods and now HomePod…
Read more in the full article here.
MacDailyNews Take: Yes, Apple takes the grain and leaves the also-rans with the chaff.
The Apple Watch is going to flop. — Mark Wilson, March 2, 2015
Apple Watch sets new all-time record for wearables shipments; ‘Apple has won the wearables game’ – analyst – February 7, 2018
Apple breaks record for biggest ever company profit – February 2, 2018
Apple Watch sales momentum is growing; unit sales now rival those of Macintosh – January 23, 2018
IDC: Shipments of wearables to nearly double by 2021 as smartwatches take the lead over cheap fitness bands – December 22, 2017
Apple Watch has blood on its hands: Adidas’ fitness wearables are dead – December 19, 2017
Apple Watch Series 3 shipments predicted to rise to 23-25 million in 2018 – December 14, 2017
Apple Watch: The war for wearables is over, and Apple won – December 12, 2017
AliveCor’s Kardiaband EKG reader becomes first Apple Watch accessory to win FDA approval as a medical device – November 30, 2017
Canalys estimates Apple shipped 3.9 million Apple Watch units in Q317, despite strong demand outstripping supply – November 14, 2017
Two weeks with Apple Watch, leaving iPhone at home – November 10, 2017
When Apple Watch surpassed iPod – November 8, 2017
Ten days in with Apple Watch Series 3: I’m amazed by how quickly it integrated into daily life – October 19, 2017
Why Apple Watch Series 3 is a game changer – October 19, 2017
[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]