A lot of tech critics questioned as to what the Tim Cook era Apple will bring to the table. The questions have been answered – the wearables segment of Apple has finally hit $10 billion in terms of revenue in Q4 of 2019.
The wearable segment consists of the Apple Watch, AirPods, AirPods Pro, HomePod, and Beats headphones. The AirPods Pro were the recent addition to the already growing wearables segment of Apple. In 2019, Apple launched the AirPods Pro for $249 which makes them sound a little expensive but that does not appear to have slowed down the sales in any way.
The wearables segment of Apple is now larger than that of the company’s Mac segment. In Q4 2019, the Mac segment could only bring in $7.2 billion in revenue. Mac is the oldest product line of Apple with no signs of being shut down any time soon.
iPhone is the main product of Apple that brings money and is now the main hub just like the Mac was in the previous days. The AirPods, the Apple Watch and etc all connect to the iPhone.
Apple Insider reports that, 75 percent of the Apple Watch buyers in Q4 of 2019 were first time Apple Watch buyers. The size of the wearables segment has grown so big that it could now be seperate Fortune 150 company, adds Apple Insider.
It looks like it was the cheaper models of Apple Watch, especially the Apple Watch Series 3 that helped push the sales of the wearables segment. First generation AirPods also sell popularly in some countries thanks to its “budget oriented” pricing (price cuts). In India, the iPhone XR and Apple’s wearables helped push sales. The company recorded 41 percent year over year (YoY) growth in the country.
The reports say it all: wearables is Apple’s future.