Cook: Apple Watch had a better launch quarter than the iPhone and iPad did

Cook: Apple Watch had a better launch quarter than the iPhone and iPad did
While Apple reported results for its fiscal third quarter this afternoon, it did not break out sales for the Apple Watch. The quarter that started in April and ended in June was the first to include results from Apple's timepiece. The tech titan put revenue from the Watch into a category called "other products" which reported quarterly revenue of $2.64 billion. This was a year-over-year gain of 49%. Apple said that it hid results for the watch so that competitors couldn't gain any "insights" into how the product is selling. 

Earlier this month we passed along data from a research firm called Slice. The numbers showed that daily sales in the U.S. of the Apple Watch had declined by 90% since the timepiece launched in April. Overall, there is a general sense that the Apple Watch is not selling like Apple thought it would.

Still, Apple CEO Tim Cook said after the earnings announcement that sales of the Apple Watch had exceeded his expectations. He added that supply could not keep up with demand by the end of June, when the quarter ended. The executive believes that Apple Watch will be one of the top gifts for the holiday season and plans on expanding sales channels as a result. He also noted that the watch outperformed the Apple iPhone and Apple iPad in their first quarters after being launched.

Without specific numbers from Apple, Wall Street analysts tried to compute how the Apple Watch did for the quarter. Piper Jaffray's Gene Munster originally figured that 1.2 million units were sold at an average price of $550. But after hearing Cook's optimistic comments, Munster raised his forecast to 2.5 million watches sold.

Apple CFO Luca Maestri actually gave us a decent idea of how much revenue the Apple Watch produced in the quarter. Noting that the "other products" category (which included the Apple Watch) rose $956 million on a sequential basis, Maestri said that the watch accounted for more than 100% of the category's growth in the period. That suggests that the Apple Watch did over $1 billion in sales for the fiscal third quarter.

source: CNET



1. maria2309

Posts: 13; Member since: Jul 09, 2015

I do not like apple watch, if it is integrated waterproof better

2. nctx77

Posts: 2540; Member since: Sep 03, 2013

English must not be your first the way, Apple watch is great under water!

5. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

What does it matter if English isn't his first language? That's true for most of the world.

9. darkkjedii

Posts: 31027; Member since: Feb 05, 2011

In this case, cause he's typing in it.

11. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

So he should be fluent in English to post on a tech website? How do English speaking people sound when they're aren't fluent in another language and try to talk to native people in that language? Should those people ignore them until they can speak it like they can, or should they accept that not everyone speaks that language and give them the benefit of the doubt?

12. darkkjedii

Posts: 31027; Member since: Feb 05, 2011

Only as much as he needs to be. Or can be

13. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

If his points gets across, that's all that should matter.

14. darkkjedii

Posts: 31027; Member since: Feb 05, 2011

That's true. Can't argue that.

3. oozz009

Posts: 520; Member since: Jun 22, 2015

Its probably around 4 million, since the original iPad was around 3 million on the same time period.

7. Victor.H

Posts: 1062; Member since: May 27, 2011

No, the original iPad had sales of 300,000 on day 1, and 1 million in 28 days since launch. I love it how you just throw around random numbers like that, though. And to continue the maths around the Apple Watch: assuming that it contributed around 100% of the 49% growth, that would be slightly more than $1 billion, meaning around 2 million watches sold if we assume a $500 average selling price.

8. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Is the strap revenue also involved in the category and what else is in this category that could lead to growth if it has shown growth before? That would offset those numbers as well a bit.

4. frydaexiii

Posts: 1476; Member since: Dec 01, 2011

"We're starting a new category." Wow, now you know why iFans are delusional, because the head is too.

6. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

That's not really shocking, since the Apple Watch launched in that quarter. Saying something that just launched had better sales than devices that launched 6 or 7 months prior shouldn't be a surprise.

10. eyedoc81

Posts: 56; Member since: May 20, 2011

Yet another Apple Watch article, and still no Pebble Time review. It's out, in stores, and PA can't be bothered to review it.

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