“Apple has a weird way of bragging about its wearables business. Instead of giving investors any type of straightforward data metric like unit sales or revenue (or both), the company instead notes when it reaches various milestones relative to the Fortune 500,” Evan Niu writes for The Motley Fool. “It’s a roundabout way to illustrate growth in the wearables segment, which primarily consists of Apple Watch and AirPods.”
“The most recent reference was just last month, when Apple said its wearables business was ‘approaching’ the size of a Fortune 200 company. Fortune has not released its 2019 list, but No. 200 on the 2018 Fortune 500 was Aramark, with $14.6 billion in sales,” Niu writes. “One can only assume that the next milestone that Apple brags about will be when the wearables business hits Fortune 100 territory. For 2018, that was USAA, with $30 billion in revenue.”
Read more in the full article here.
MacDailyNews Take: Yes, Apple could simply say that wearables is close to $14.6 billion in annual sales, but where’s the fun in that? And, how many analysts and investors, lost amid Apple’s mind-boggling numbers, would realize the sheer size as readily as hearing that if Apple wearables were a separate company, it’d be a Fortune 200 company?
Still a niche market, and as Apple Watch prices approach new iPhone prices of the past and current iPhone prices surpass Macbook prices, and Macbook Pro and iMac Pro prices exceed prices for decent used cars, how long will this accessory even be around?
It will be around awhile. Since it is sitting on the wearables throne, others just aspire to be as good as it. People will save up for it, if it makes sense for them.
Consumers in China and India wouldn’t pay that much for a smartphone as Apple is charging for the AppleWatch. There are so many countries where the AppleWatch will never see the light of day. In most emerging countries, health management is well down on their daily lists and may actually be non-existent.
The price of the Apple Watch is great value and contrary to what you are stating it’s quite clear that sales are increasing. I guess you feel a bit silly with your Samsung “smart watch”.
The GEEKS are mad, that Apple Watch is the king…..
@Fanboy
I concur.
So great to see zerowanqa has stopped beating around his bush, sad to see he is now called MDN Fanboy.
The Series 4 Apple Watch is not a fringe device. It is a spectacular fitness and rising medical device that will only improve, especially in combination with new AirPods. Does anyone really think that Apple is not going to build on the synergy between these two wearable devices to deliver increasingly sophisticated monitoring of health parameters. Add in the iPhone and iPad Pro and you have a medical detection, record keeping and self-directed treatment ecosystem that will lead to a complete revolution in self procured health care. For anyone to think of these devices as niche, has the insight of an amoeba.
@Michael
That all sounds quite ambitious, but have you met Apple’s CEO yet, lol. Apple is at odds with the things Tim Cook should do, the things he will never do, the things he did, and the things he does.
You can file your comment in the “never do” category.
Apple’s iPhone sales are declining faster than AppleWatch sales are gaining, so Wall Street believes Apple is wasting its time with AppleWatch. In Wall Street’s eyes, AppleWatch is basically a failed product that won’t ever produce iPhone-type revenues. AppleWatch will only be bought by people who own iPhones, so analysts will say AppleWatch sales will be tied to declining iPhone sales which is a lose-lose situation.
Apple needs to pursue an unlimited growth business like the cloud. Big investors aren’t very interested in Apple selling costly non-essential trinkets to consumers.
Agreed. The watch is still a wrist remote for the phone.
Yes, it has applications for fitness and medical, but given the price point, I still can’t see it as a good value when compared with competition in those markets. Just seems like a luxury accessory for your luxury-brand phone.