Apple Watch and Apple TV See Record Quarterly Sales

[MacRumors]

Both the Apple Watch and the Apple TV set new quarterly sales records in 1Q 2016, according to information shared by Tim Cook during today's earnings call. The Apple Watch saw especially strong sales in December as people purchased the device during the holiday season, something that's perhaps not a surprise given the significant discounts offered by some third-party retailers.

While Apple did not offer discounts itself, Best Buy cut prices on the Apple Watch by $100, and Target offered a $100 gift card with the purchase of an Apple Watch. These price drops likely boosted Apple Watch sales by a good amount during the quarter. Apple also expanded Apple Watch availability to more than 48 countries ahead of the holiday season.

As for the Apple TV, Apple says it saw its best quarter ever following the launch of the fourth-generation device. The Apple TV 4, priced at $149 to $199 depending on capacity, includes features like a full App Store, a touch-based remote control and Siri voice control. Available apps on the Apple TV have expanded, with 3,600 total apps now downloadable on the device.

Apple does not break out sales of the Apple Watch and the Apple TV, choosing instead to lump them into an "Other" category that also includes iPods and Beats headphones, so exact sales numbers for the two devices are not known. Revenue for the Other category did see a big increase, jumping more than 40 percent from $2.7 billion in 1Q2015 to $4.35 billion in 1Q2016. Sales were also up quarter over quarter, as revenue in 4Q2015 was at $3 billion.

Overall, it was a record quarter for Apple with $18.4 billion in profit on $75.9 billion in revenue. During the quarter, the company sold 74.8 million iPhones, 16.1 million iPads, and 5.3 million Macs.

Article Link: Apple Watch and Apple TV See Record Quarterly Sales

 

[yadmonkey]

I stood up to applaud this news, but my Apple Watch didn't give me credit for it, so now I'm running around the room waving my arms up and down.

 

[japanime]

Remember all those people saying that time was running out for the Apple Watch?

Seriously, this is great news for both the Apple Watch and the Apple TV. Hopefully Apple will apply even more resources to these projects, and the next builds we be more full-featured (more health monitors on the watch, and coaxial input on the ATV).

 

[OtherJesus]

I expect Amazon stock to get a big boost from this news!

 

[Deuce on the Clock]

Apple TV is a really great product. Apple Watch not so much. Its a niche product that saw sales and huge returns to match. If the watch numbers aren't broken out, we will never know the true numbers of sales/returns for it. I love the Apple TV for games though,cant wait to see Nintendo and old school games offered.

 

[NickD73]

Of course this past quarter was going to be the biggest ever for Apple Watch...It was it's first holiday quarter. Anything less would have been a complete and utter catastrophe.

As far Apple TV, this past quarter was the first update in something like 3 years, so, again, anything less would have been a huge negative.

The Apple bulls are looking for any good news they can get their hands on, and while i've been saying for a long time now that SHORT TERM there is plenty of reason to think Apple will have record breaking numbers, the LONG TERM is much more foggy, hence why I am calling Apple stock down to $85 by years end, as I have been for months, even when the stock was trading at $120+.

 

[Mildredop]

The day Apple release actual sales figures for the watch is the day I'll accept the watch is a success.

 

[dannyyankou]

Love the 4th gen Apple TV

 

[Benjamin Frost]

To say that the Apple Watch set record quarterly sales means precisely nothing.

There were no sales a year ago. It's hardly surprising that their best sales would be at Christmas. We also know that the watch was hugely discounted, an unprecedented move from Apple. We have also had no sales figures from Tim Cook since the watch was launched in April 2015.

All this suggests that the iWatch has been disappointing at a minimum. I think it has done very badly, and that its future is bleak. Goodwill to all who have bought it, but the Apple Watch is a mistake.

 

[JimmyHook]

Apple is doing well!!!! Watch sales beating all competitors
[doublepost=1453852578][/doublepost]

To say that the Apple Watch set record quarterly sales means precisely nothing.

There were no sales a year ago. It's hardly surprising that their best sales would be at Christmas. We also know that the watch was hugely discounted, an unprecedented move from Apple. We have also had no sales figures from Tim Cook since the watch was launched in April 2015.

All this suggests that the iWatch has been disappointing at a minimum. I think it has done very badly, and that its future is bleak. Goodwill to all who have bought it, but the Apple Watch is a mistake.

Apple did not discount the watch. Some retailers did. Apple's prices are still the same as day one. It's leading the industry

 

[NickD73]

Apple is doing well!!!! Watch sales beating all competitors
[doublepost=1453852578][/doublepost]
Apple did not discount the watch. Some retailers did. Apple's prices are still the same as day one. It's leading the industry

Right, but how often do you see retailers offering $100 (~25%) off a brand new Apple product? Never in my memory.

 

[BlueMoon63]

Right, but how often do you see retailers offering $100 (~25%) off a brand new Apple product? Never in my memory.

Retailers heavily discount every single Samsung product ever made and usually within weeks of selling. They even offer buy one get one free. It doesn't tell you much.

The original iPhone dropped by 25% after only 3 months. Took 2+ years to sell as many phones as the watch did in 8 months. It means nothing - especially when the profit margin on the Apple Watch was 400%.
[doublepost=1453854575][/doublepost]

To say that the Apple Watch set record quarterly sales means precisely nothing.

There were no sales a year ago. It's hardly surprising that their best sales would be at Christmas. We also know that the watch was hugely discounted, an unprecedented move from Apple. We have also had no sales figures from Tim Cook since the watch was launched in April 2015.

All this suggests that the iWatch has been disappointing at a minimum. I think it has done very badly, and that its future is bleak. Goodwill to all who have bought it, but the Apple Watch is a mistake.

You "think" it has done very badly? lol

Estimated by analysts to have sold 12mm Apple Watches since April and several billion in profits to Apple. Took the IPhone two years to sell that many iPhones and it was blasted as a flop and failure by everyone. Way too soon to write off the Apple Watch.
[doublepost=1453854893][/doublepost]

Apple is doing well!!!! Watch sales beating all competitors
[doublepost=1453852578][/doublepost]
Apple did not discount the watch. Some retailers did. Apple's prices are still the same as day one. It's leading the industry

Doesn't really matter to correct him. He only likes posts that are negative towards Apple products. Go check the other Apple reporting news item here. He likes every single post that bashed Apple. He even likes the posts that mock people who buy the Apple Watch. he has a long history of bashing Apple and likes any post that is negative towards Apple.

 

[lordofthereef]

Not surprised by this at all. I will be waiting for the holiday season following the net watch launch to update my wife'swatch. Hell, OI may do the same with our phones. Apple products seem to finally be getting those deep Holiday discounts that they were virtually immune it in years past.

 

[Zirel]

The day Apple release actual sales figures for the watch is the day I'll accept the watch is a success.

Why?

1. Denial
2. Anger
3. Bargaining
4. Depression
5. Acceptance

Are you grieving over that the Apple Watch is being successful?

 

[Mac 128]

The day Apple release actual sales figures for the watch is the day I'll accept the watch is a success.

I tend to agree. I'm used to Steve Jobs standing up in front of a huge audience during a keynote address boasting about how many millions of iPhones they sold. It would warm the cockles of my heart if Cook stands up during the March keynote with a similar announcement for the first year of Watch sales, and stats about dusting the rest of the industry, just before he announces the Watch 2, and the continuation of select 1st Gen Watch models at a lower price.

But the secrecy is damning. By all indications, the Watch has been very successful -- far more successful than all of the competition put together it would appear. So hopefully, they're just waiting for a full year of sales to knock everyone's socks off.

 

[developer13245]

Of course this past quarter was going to be the biggest ever for Apple Watch...It was it's first holiday quarter. Anything less would have been a complete and utter catastrophe.

As far Apple TV, this past quarter was the first update in something like 3 years, so, again, anything less would have been a huge negative.

The Apple bulls are looking for any good news they can get their hands on, and while i've been saying for a long time now that SHORT TERM there is plenty of reason to think Apple will have record breaking numbers, the LONG TERM is much more foggy, hence why I am calling Apple stock down to $85 by years end, as I have been for months, even when the stock was trading at $120+.

Agree. The watch and TV will not be the next big thing - not even close. Sure, it's hard to replicate the success of the iPhone, but now that has peaked.

The watch and ATV will not be the success everyone was hoping for - developers are abandoning the platforms because there really is no money to be made. At most, watch features only serve as an adjunct to a phone app. And even "successful" ATV games are not making any good money.

And, even big names that created branded custom phone apps for their business (i.e. banks, etc), have backed off on the iPad platform. I have contacts at a design firm that did the UX for a fortune 500's app - iPad form factor UI was never even considered.

We've just seen "Peak Apple" - so basically: (Apple = iPhone) from here on... everything else is "Just a hobby".

 

[Jackstar]

Apple TV is a really great product. Apple Watch not so much. Its a niche product that saw sales and huge returns to match. If the watch numbers aren't broken out, we will never know the true numbers of sales/returns for it. I love the Apple TV for games though,cant wait to see Nintendo and old school games offered.

In the last 20 years we bought bigger and bigger TV set so I don't see the point of having such a small screen to go on the internet and if you want a very good watch forget iWatch go with Cartier, TagHeuer or the likes of Rolex

 

[Zirel]

Right, but how often do you see retailers offering $100 (~25%) off a brand new Apple product? Never in my memory.

Happens all the time… for example, the iPhone 6S should be getting a $100 cut on contract prices.

 

[dannyyankou]

Right, but how often do you see retailers offering $100 (~25%) off a brand new Apple product? Never in my memory.

It came out in April, I wouldn't call that brand new.

I remember the iPhone 5s got a $100 price cut and gift card offers by June in 2014.

 

[BlueMoon63]

Agree. The watch and TV will not be the next big thing - not even close. Sure, it's hard to replicate the success of the iPhone, but now that has peaked.

The watch and ATV will not be the success everyone was hoping for - developers are abandoning the platforms because there really is no money to be made. At most, watch features only serve as an adjunct to a phone app. And even "successful" ATV games are not making any good money.

And, even big names that created branded custom phone apps for their business (i.e. banks, etc), have backed off on the iPad platform. I have contacts at a design firm that did the UX for a fortune 500's app - iPad form factor UI was never even considered.

We've just seen "Peak Apple" - so basically: (Apple = iPhone) from here on... everything else is "Just a hobby".

I can't imagine any product matching the success of the iPhone. Holy crap they sell a lot of iPhones. They need something really special with the iPhone 7 to get above the peak talk. Some of the rumors may just be the key to boost sales but it was only a matter of time before sales peak. Eventually it happens. That's where they need new products that sell more than 10-20mm per year. Analyst are predicting the wearable market will explode by 2020 but that remains to be seen.

 

[WhoDaKat]

Of course this past quarter was going to be the biggest ever for Apple Watch...It was it's first holiday quarter. Anything less would have been a complete and utter catastrophe.

As far Apple TV, this past quarter was the first update in something like 3 years, so, again, anything less would have been a huge negative.

The Apple bulls are looking for any good news they can get their hands on, and while i've been saying for a long time now that SHORT TERM there is plenty of reason to think Apple will have record breaking numbers, the LONG TERM is much more foggy, hence why I am calling Apple stock down to $85 by years end, as I have been for months, even when the stock was trading at $120+.

Come on $85 a share! I've got my money ready!
[doublepost=1453856361][/doublepost]

I tend to agree. I'm used to Steve Jobs standing up in front of a huge audience during a keynote address boasting about how many millions of iPhones they sold. It would warm the cockles of my heart if Cook stands up during the March keynote with a similar announcement for the first year of Watch sales, and stats about dusting the rest of the industry, just before he announces the Watch 2, and the continuation of select 1st Gen Watch models at a lower price.

But the secrecy is damning. By all indications, the Watch has been very successful -- far more successful than all of the competition put together it would appear. So hopefully, they're just waiting for a full year of sales to knock everyone's socks off.

They aren't going to release the numbers on a new product like the  Watch, for strategic reasons. They aren't worried about knocking your socks off. Although close to a quarter trillion in cash comes pretty close to socks knocked off territory.

 

[ghost187]

Of course this past quarter was going to be the biggest ever for Apple Watch...It was it's first holiday quarter. Anything less would have been a complete and utter catastrophe.

As far Apple TV, this past quarter was the first update in something like 3 years, so, again, anything less would have been a huge negative.

The Apple bulls are looking for any good news they can get their hands on, and while i've been saying for a long time now that SHORT TERM there is plenty of reason to think Apple will have record breaking numbers, the LONG TERM is much more foggy, hence why I am calling Apple stock down to $85 by years end, as I have been for months, even when the stock was trading at $120+.

Told many people to sell and buy puts when APPL popped back to $120 briefly. Doubt we'll see those levels for a while.

I think Apple as a products company is great and I love and buy everything they make, but there is nothing that is rumored to come out that can move the needle. iPhone sales will decline, iPad sales don't even seem like they bottomed out, even a 100% YOY growth for Apple Watch for multiple years will not make dent in overall revenue, and the Mac at best will grow gradually.

Of course there is Apple Car but that's long ways away if it's real, and nothing really guarantees its success.

 

[BlueMoon63]

i hope they never post the watch or Apple TV numbers. Just let that other section keep growing and people whining that they need to put out the actual numbers.

 

[Thunderhawks]

The day Apple release actual sales figures for the watch is the day I'll accept the watch is a success.

And, why again are we supposed to care how much money they make or what they sell?
I don't get a dime from anything they do.

I'll give people with Apple shares following the stock and results, but everybody else?

Buy the products you like (from any manufacturer) and be happy.

Calling the watch a failure without knowing the real sales numbers is farfetched.

 

[Mac 128]

They aren't going to release the numbers on a new product like the  Watch, for strategic reasons. They aren't worried about knocking your socks off. Although close to a quarter trillion in cash comes pretty close to socks knocked off territory.

Oh I know what they've said. But they sure loved to do it when the iPhone came out. I'm really not sure what strategic reasons they could have when they're reportedly 'spanking' the wearable industry at large. As long as they keep it a big secret, people are gonna question it. And it's not single handedly responsible for all the earnings from the "Other" slice of the pie. You can't make claims like that without knowing the breakdown. Beats could easily be responsible for the lions share of those earnings.
[doublepost=1453857005][/doublepost]

Calling the watch a failure without knowing the real sales numbers is farfetched.

First, he didn't call it a failure. And second, something doesn't have to be a failure not to be a success.