Asymco: Apple’s AirPods surpass ‘peak iPod’ with $4 billion in quarterly sales

AirPods Pro are packed with audio innovation to deliver superior sound and an immersive noise-canceling experience.
AirPods Pro are packed with audio innovation to deliver superior sound and an immersive noise-canceling experience.

Horace Dediu for Asymco:

Apple Watch overtook the historic “peak iPod” which occurred in the fourth quarter of 2007 at $4 billion. My Watch revenue estimate was $4.2 billion in the fourth quarter of 2018. This conclusion was confirmed by statements from the Company.

Looking forward to the next quarter, I am expecting a 51% increase y/y for Wearables and 24% growth in Watch. This results in a Watch revenues about $5.2 billion and non-Watch $5.7 billion. Now if we assume $1.7 billion for non-Watch-non-AirPods (i.e. Apple TV, HomePod, Beats, iPod, other) then this quarter AirPods will have overtaken peak iPod.

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9 Comments

    1. It doesn’t matter if Surface sales were down. The only thing that matters to big investors is Microsoft’s Azure revenue and that alone will allow Microsoft’s value to keep pace with Apple and possibly surpass Apple in overall worth. If Apple could have continued selling increasing numbers of iPhones over the last couple of years, none of the other products Apple is selling would matter. Of course, that is no longer the case as iPhone sales have supposedly tanked according to rumors.

  1. So in just the last few years — outside of huge growth in iPhones, iPads, Mac and Services — Apple has grown an entirely new wearables business somewhere between the size of Hershy’s and Hilton (and far bigger than Wynn Resorts, NCR, Ralph Lauren, Electronic Arts, Western Union, Harley-Davidson, etc.).

  2. Not to take anything away from AirPods — it’s a great new business line and a great product — but you’re comparing apples and oranges (no pun intended). Actually, you’re comparing 2007 apples and 2018 oranges. Gotta factor in inflation and such.

    It’s like Hollywood press releases — which are picked up by all sorts of publications that should know better — that proclaim “the highest-grossing _______ [fill in the blank] ever!” No, “Frozen II” didn’t have the biggest opening of any animated film ever. And no, no one should care that grosses for “Avengers: Endgame” topped the grosses of “Avatar”, because today’s money isn’t equivalent to the money from 2009. If it was, I could still buy a luxury car for $20,000.

    When you adjust for inflation, the top-grossing film of all time is still Gone With the Wind, followed by Avatar, Titanic, Star Wars, Avengers: Endgame, The Sound of Music, E.T., The Ten Commandments, Doctor Zhivago and Star Wars: The Force Awakens.

    Just saying…
    https://en.wikipedia.org/wiki/List_of_highest-grossing_films#Highest-grossing_films_adjusted_for_inflation

  3. So, I suppose it’s possible to say that Tim Cook has had a very successful product under his reign, although it’s not comparable to Steve Jobs’ iPhone and iPad successes. Still, I would say the AirPod’s success is quite decent. Critics seem to not give Tim Cook any worthwhile praise as Apple’s CEO.

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