Apple’s wearables category has overtaken its Mac market for the first time.
During the first quarter of 2020, the wearables earnings category, which covers items including AirPods, Apple Watch, HomePod, and Beats headphones, generated $10 billion in sales. That’s up more than $2.5 billion on the $7.3 billion reported in the same 2019 quarter.
Officially known as “Wearables, Home, and Accessories”, the category made history this month after overtaking Mac revenue for the first time. By comparison, Apple generated more than $7.2 billion in sales from its Macs in the first quarter of 2020.
Speaking to Reuters, Apple’s CEO Tim Cook said that the company struggled to keep up with the demand for AirPods and Apple Watch Series 3 in the quarter with supplies regularly running low. Cook added that the company is “working on both of those very hard.”
Big month for Apple Watch
The Apple Watch also hit a new all-time revenue record; in Q1 2020, 75% of new customers were new to Apple Watch, with consumers adapting to smart wearable tech or switching from rival brands, such as the Samsung Galaxy Watch portfolio and the Fitbit product family.
Remember that Q1 2020 includes the holiday season, and 2019 was a big year for Apple with the launch of two new AirPods models, including the AirPods Pro, considered a “must-have” holiday gift by many publications and the general public, driving demand.
Speaking of the news, Cook said that Apple’s wearables division is now the size of a Fortune 150 company. What’s more, Apple’s wearables now generates more revenue per quarter than the whole of Apple’s business before the launch of the iPhone – truly impressive times.
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