Apple's wearables business poised to overtake the iPad and Mac

Apple's wearables business poised to overtake the iPad and Mac
Apple's wearables business—which is predominantly driven by the Apple Watch and AidPods, but also includes the HomePod and accessories—is set to overtake both the iPad and Mac by the end of 2020, according to a new report.

Analysis of Apple's wearables business is somewhat difficult, because the company doesn't reveal unit sales on a per-product basis in this category, but a new report by Above Avalon, spotted by 9to5Mac, claims that by using "an accurate financial model and close following of Apple clues," a much clearer picture can be painted.

"On a revenue basis, Apple’s wearables business is now at a $16 billion annual run rate growing at 55% to 60%," says the report. "At the current pace, wearables will surpass both the iPad and Mac near the end of 2020 to become the third largest product category behind iPhone and Services when looking at revenue [...] Wearables nearly exceeded Services in 3Q19 as Apple’s top revenue growth generator when looking at absolute dollars."

Even though the wearables category lumps together the Apple Watch, AirPods, HomePod, and Apple accessories, sales of the Watch and AirPods far exceed the others, making up 60 of 70 million wearables sales.

"Apple is leveraging its ecosystem of users and devices to give its wearables business an ideal launching pad for success. While there are handful of companies with more than a billion users, no other company has an ecosystem of a billion users and nearly 1.5 billion devices," says the report.

Apple is also said to be poised to reach install bases of a hundred million each for the Apple Watch and AirPod. Curiously, even though Apple's wireless earbuds are a much more recent addition to its wearables portfolio, they are likely to hit the 100 million mark sooner than the Apple Watch.

Apple's wearables business is set to overtake both the iPad and Mac by the end of 2020, and if the company keeps the momentum, even possibly its services business, which is currently second to the iPhone in terms of profitability.

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6 Comments

1. oldskool50

Posts: 1339; Member since: Mar 29, 2019

Hmmm! If the Apple Watch is bringing in more revenue then a product you've been selling for more than a decade or more, that could be a bad sign. Apple has been selling the mac for a very long time. The Mac is basically a artificial reincarnation of Steve Jobs. it's has never been a top selling computer, where in it hay-day was selling only 2M per quarter vs Windows OEM's who were selling 10-15M per quarter. The iPad has been a very good selling device since 2010. But other than some physical design changes, the capabilities of the iPad have basically remained unchanged. When you own an iphone, I see zero reason to have an iPad. I think its betetr to have one or the other. But iif the Watch liek you claim is bringing in more cash than a piece of hardware that cost 3 times as much and would bring in far more revenue, then that is actually a bad thing. The Watch is a toy compared to the iPad or a Macbook. The watch has far less capabilities and only its price is high. So looking at the bill of material, Apple likely spends less than $75 to have one made, and that is being generous. But they are charge $300-800 for them depending on model and yet no matter which one you get they all do the same thing. So yeah, they are makign a killing on the profit margin. But Mac sales are dropping, the Mac Pro has never been a high seller, the iPad sales are dropping, iPhone sales are dropping, the iPod hasn't been a household name in 5 years now and the Apple speaker in't doing all that well either; the Watch is not their saving grace. Something that has a starting price of $300, should not be bring in more money than something that sells or $800

3. midan

Posts: 2720; Member since: Oct 09, 2017

IPad sales are up

4. toukale

Posts: 624; Member since: Jun 10, 2015

Stop it with your facts, leave him/her continue with the doomed narrative.

5. Jrod99

Posts: 715; Member since: Jan 15, 2016

Ha ha. That’s ole techiexp doing what he does best. I really enjoy the Apple Watch which kinda keeps me in the eco system.

2. midan

Posts: 2720; Member since: Oct 09, 2017

........

6. darkkjedii

Posts: 30969; Member since: Feb 05, 2011

I wonder how much iPhone sales will impact wearable sales. Most people definitely use them more with the iPhone, than anything else.

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