Apple’s wearables devices like the Apple Watch and AirPods have become incredibly popular, so popular that sales of these devices are on track to take over sales of the iPad and Mac in 2020.
According to a recent report, sales of Apple’s wearables will overtake Mac and iPad sales next year. This would end up making wearables Apple’s third most popular category.
The news comes in a report from Neil Cybart, who has revealed Apple’s wearables are now a major player in the company’s product sales.
On a revenue basis, Apple’s wearables business is now at a $16 billion annual run rate growing at 55% to 60%. 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.
The Rise of Apple Wearables
The rise of Apple wearables can be attributed to several factors. Firstly, the Apple Watch has evolved significantly since its initial release. The latest models come with advanced health monitoring features such as ECG, fall detection, and blood oxygen level measurement. These features have made the Apple Watch not just a tech gadget but a health companion, appealing to a broader audience including fitness enthusiasts and health-conscious individuals.
AirPods, on the other hand, have revolutionized the way people listen to music and interact with their devices. The seamless integration with Apple’s ecosystem, superior sound quality, and the convenience of wireless technology have made AirPods a must-have accessory for many. The introduction of AirPods Pro with noise cancellation and improved sound quality has further boosted their popularity.
Impact on Apple’s Overall Business
The growing success of wearables is having a significant impact on Apple’s overall business strategy. While the iPhone remains the cornerstone of Apple’s revenue, the diversification into wearables and services is helping the company reduce its dependency on iPhone sales. This is particularly important in a market where smartphone sales are plateauing.
Many analysts have been focusing on Apple’s growing Services business, which includes Apple Music, Apple TV+, and iCloud. However, the rapid growth of the wearables segment indicates that Apple is successfully expanding its product portfolio. This diversification is crucial for sustaining long-term growth and maintaining investor confidence.
Moreover, the wearables market is still in its early stages, with plenty of room for innovation and growth. Apple is likely to continue investing in this segment, potentially introducing new products and features that could further drive sales. For instance, there are rumors about Apple developing augmented reality (AR) glasses, which could be the next big thing in wearables.
It will be interesting to see what happens next year. The wearables market is becoming increasingly competitive, with companies like Samsung, Google, and Fitbit also vying for a share. However, Apple’s strong brand loyalty, ecosystem integration, and continuous innovation give it a competitive edge.
In conclusion, Apple’s wearables are on a trajectory to become a significant part of the company’s revenue stream. With a $16 billion annual run rate and growing at 55% to 60%, wearables are set to surpass both the iPad and Mac by the end of 2020. This growth not only highlights the success of Apple’s product diversification strategy but also underscores the increasing importance of wearables in the tech industry.
Source Above Avalon, 9 to 5 Mac
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