The computers that put Apple on have been surpassed by the gadgets that make up Apple’s future, at least in terms of sales, reports CNBC.
“Wearables, Home and Accessories” revenue is larger than Mac revenue for the first time, Apple revealed in a blowout earnings report on Tuesday.
CNBC also reports Apple’s revenue was up 9% to $91.8 billion, which beat its own guidance. That’s a significant change from the same quarter last year when it had to revise its revenue guidance down mid-quarter based on weakness in China.
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.
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| Wall Street Journal graphic |
“Both AirPods and Apple Watch were must-have holiday gifts, helping drive unprecedented results for the category,” Apple CEO Tim Cook said, adding that Apple couldn’t make enough of some models to meet demand.
While Apple doesn’t break out Apple Watch or AirPods revenue individually, 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.
While Apple has called investor attention to its services division, which posted strong 19% growth year-over-year, its so-called wearables business has been on a tear. (Mac was down 3%.)
Wearables, Home, and Accessories grew 37% year over year, and last year, posted two straight quarters of 50% growth, impressing Wall Street.
The segment still constitutes only 10% of Apple’s total revenue — far behind the iPhone division at 60%.
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