Apple wearables segment has seen significant growth in the four years since the launch of the original Apple Watch. The company has launched four generations of Apple Watch since 2015 with plans to launch a new one later this year. Apple Watch has also managed to save a number of lives recently with the inclusion of some extremely useful features. The electronics giant changed the game by adding ECG measurement module on Apple Watch Series 4. Other features include unique features such as fall detection and more. Apple has also taken over the wireless headphone segment with the introduction of its Apple AirPods.
Apple Wearables revenue forecast
Analyst Neil Cybart claims that Apple wearable segment will overtake iPad and Mac in terms of revenue soon. In the latest note, Cybart stated that Apple Watch and AirPods products that comprise of the wearable segment accounts to about $16 billion/year. He did note that it was difficult to track the Apple wearables revenue but this segment was growing at an annual rate of anywhere between 55 percent to 60 percent. The note went on to state that at the current pace, this segment was set to overtake iPad and Mac by the end of 2020.
The growth rate is likely to make Apple wearables the third highest-earning product category after the iPhone and services. Cybart went on to add that the wearables segment “nearly exceeded Services” in the Q3 earnings report of 2019. The report added that Apple seems to be enjoying the “higher” average selling price of Apple Watch and AirPods. The second aspect that seems to be helping the wearables segment is the “continued strong unit sales growth”.
Cybart added that the wearables segment is odd as it also includes HomePod and other Apple accessories. It is likely that AirPods and Apple Watch account to about 60 million of the total 70 million sales figure. The report also noted that Apple is likely to become unstoppable because of its “massive base of installed devices”.