Apple Watch Sales Exceeds $1.7B In FY 2015

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Apple Watch Sales Exceeds $1.7B In FY 2015
ElisaRiva / Pixabay

The Apple Watch helped the firm register more than 100% YoY revenue growth in the “Other Products” category, the iPhone maker said in its quarterly 10-Q filing with the SEC. Based on this, it can be expected that wearable device earned more than $1.69 billion in sales by September.

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Apple Watch sales number still a mystery

Apple’s catch-all category was worth $8.379 billion in 2014, and it grew to $10.067 billion in fiscal 2015. This suggests that the Apple Watch contributed at least $1.688 in sales for the current fiscal year, VentureBeat noted.

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It is very possible that the contribution by the Apple Watch was higher as there is no information on the performance of Apple’s “Other Products.” This group is comprised of the Apple TV, Beats hardware and the iPod lineup. The company refreshed the iPod touch in July.

Apple’s Other Products category had been shrinking until the third quarter of fiscal 2015. In the same quarter, Apple launched the watch, which helped the category  witness a sequential increase of 56% in to $2.64 billion.

When the company released its quarterly earnings report this week, it said watch sales were up in the last quarter and exceeded internal expectations. In its first nine weeks, the Apple Watch was able to outsell the first generation iPad, the company revealed in July. In its first 80 days, the company sold 3 million units of the iPad.

Talking of the watch, CEO Tim Cook said the company is in the “early innings of this promising new part of our business.”

Holiday season – the real test

Launched in April, the Apple Watch was available only for five months of Apple’s fiscal 2015, which concluded on Sept. 26. Citing competitive reasons, Apple turned down the request to reveal unit sales for the watch. In fiscal 2015, Apple’s Other Products category saw growth of 61% on a YoY basis. With the debut of the $149 new fourth-generation Apple TV this quarter, this category is expected to grow further.

For Apple, the holiday quarter is the most important, and it will be the time when the smartwatch will be put to the real test. Apple won’t be the only smartwatch maker selling a watch in the holiday quarter and will face competition from Huawei, Motorola, Samsung and LG. All these companies offer smartwatches that run on the Android OS and work with iPhones as well. Tag Heuer, the traditional Swiss watchmaker, will also launch its $1,800 Android Wear and Intel-powered smartwatch in November.

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Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com
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