The wearables era at Apple began years ago. However, Wall Street and Silicon Valley are only now slowly starting to pay attention to what Apple has been building. Apple is the undisputed leader in wearables, and they are pulling away from the competition. Given how Apple’s wearables strength continues to be underestimated, the company deserves more credit for what it has achieved and where it is headed.
A takeaway from Apple’s recent 3Q19 earnings was that we are witnessing the wearables era continue to unfold at Apple… Wearables nearly exceeded Services in 3Q19 as Apple’s top revenue growth generator when looking at absolute dollars. Consensus was not expecting this to occur as Services was positioned as Apple’s growth engine. It is clear that consensus spent too much time on the Services highway and ended up missing the exit for wearables.
One way of thinking about Apple’s wearables business is that it’s a train gaining momentum. Competitors face declining odds of being able to stop the train.
MacDailyNews Take: The behemoth that is iPhone obliterated everything else for so long that as its long shadow recedes a bit and settles into stasis, Apple’s diverse underlying businesses are slowly illuminated. The best selling watch – not just smartwatch – in the world is Apple Watch. AirPods’ unti sales growth was a massive 80% YOY for Q319! It’s a testament to iPhone, the world’s best-selling product ever, that it was able to hide several Fortune 500 businesses in its prodigious shadow for so long.