Analyst: Apple’s next big growth biz is ‘Other products’

“By 2019, says Guggenheim’s Robert Cihra, it will be Apple’s 4th largest business and its fastest-growing,” Phillip Elmer-Dewit writes for Apple 3.0.

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.]


    1. Where are you from DavGreg? How old are you? Have you ever worked for Apple? iHave.

      Are you schooled in AAPL history?

      What makes you such an expert on “All Things Apple”? More specifically, Tim Cook? Please share your credentials. Otherwise…

      Please go back under the rock from which you came.. you “Pathetic Dolt”.

      1. Please share your credentials. Otherwise…

        Learned first SW code in College on TRS-80s, Apple IIs and Commodore PETs saving to Cassettes. Later worked in Command Line long before GUIs were common on Digital, Wang, Data General, SGI, etc. Remember when Windows for Workgroups was a thing.

        Bought my 1st Apple product while Jimmy Carter was President. Were you even born then? Or maybe riding your Big Wheel on the sidewalk. First Mac when they went on the market overseas- 1st Generation Mac.

        Remember the lines standing in front of the 4th Apple Store to open- back when there was a real reason to stand in line at an Apple Store and the experts said they would fail like Gateway Stores.

        Apple shareholder from about the time of the OS X public Beta. Remember being told by PC guys & IT staff that the Mac was dead and that I should get a “real” computer.

        Remember Beta Testing professional Mac Medical Software that is used in Hospitals around the world.

        There is a Mac Pros, Mac minis, iPod Touch, MacBook Pro, AppleTV, iPhone, AirPort Base Station and other stuff in my house.Somewhere around here are old iPods and an Apple TV with a HD.

        I have an account with Apple Developer.

        I do not care if you worked for Apple- they hire people to clean toilets and sell iPhones. Means nothing in itself. Working for NASA does not make you an Astronaut.

        Now go put your MAGA hat on and troll elsewhere from Mom’s basement.

  1. Will “other products” revenue help to ease Apple investor’s “concerns, doubts, fears, uneasiness, worries, anxieties or apprehensions?” Apparently, no. Big investors all want written guarantees by Apple that growth will turn out better than OK. If Jeff Bezos can guarantee unlimited growth and Apple can’t, then they’re gone. Next price target for Amazon is $1800 a share. For Apple it will be $180 a share. That seems reasonable (for Amazon) but Wall Street isn’t so sure about Apple.

    1. Unlimited “GROWTH”? Yeah, OK…. Selling IMPORTED American IP infringed goods from China?

      What brand of “SMARTPHONE” do you carry on your person fruitbittenROT? Where are you from?

      Please share your omnipotent crystal ball of “All Things Amazone and the BOZO smoke & mirrors reflections…… PLEASE. P/E… ?… please elaborate on your “UNLIMITED GROWTH”… of … what kind of margins does BOZO ACTUALLY REPORT?

      The only thing iRegret about Amazone & his BOZO Circus is the FACT that Steve Jobs is no longer here to tell this FALLACIOUS CEO “BOZO” TO GO TAKE A LONG WALK OFF A VERY SHORT PIER.

      J.BOZO…. THE LEACH OF THE IGNORANTS… Selling out America… One IP Infringed china product @ a time.


  2. If you look at the use markets then the next big area for Apple is Health. Glucose monitors, EKGs, Emergency contacts (help- I’ve fallen and I can’t get up), etc. included in, or integrated with an Apple Watch or iPhone, or both. That can be a massive market, growing as fast as the FDA approves new products or applications.

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