Earlier today, Apple revealed in a blowout earnings report that revenue for the “Wearables, Home and Accessories” category, which includes Apple Watch + AirPods, is larger than Mac revenue for the first time.
Apple’s catch-all category, which includes AirPods and Apple Watch among a bundle of other items such as accessories sold at Apple stores, surged to $10 billion in revenue in the quarter that ended in December. That’s more than the $7.1 billion Apple generated from selling Mac computers.
While Apple doesn’t break out Apple Watch or AirPods revenue individually, [Apple CEO] Cook added that Apple Watch sales hit a record during the quarter. He also said that “Wearables,” which includes those two products plus Beats headphones, would be a Fortune 150 company, implying it would generate about $20 billion in revenue per year.
MacDailyNews Take: Apple’s “Wearables, Home, and Accessories” category grew 37% YOY. Mac was down 3%. Still $7.1 billion in 90 days is nothing to sneeze at! (For reference, iPad brought in $5.977 billion in the quarter.)
With each Apple product that a customer buys, I think they get tighter into the ecosystem. That’s the reason that they’re buying into it. Because they like the experience, the customer experience, and so from that point of view I think each of our products can drive another product. I would think in that case it’s more likely that the iPhone comes first, but there’s no doubt in my mind that there’s some people that came into the ecosystem with the Watch. — Apple CEO Tim Cook, January 28, 2020