Apple sold more than $1.7B in Apple Watches during fiscal year

[convergent]

Hopefully its OK to post this here... linking to news on another site. I found it interesting because I'd not seen the analysis they did from the latest earnings.

http://venturebeat.com/2015/10/29/a...-11-other-tasty-morsels-in-its-annual-filing/

What Venture Beat picked up on is that they credited more than 100% of growth in the "Other" category to the Apple Watch. That growth equalled $1.7B. Considering iPods are declining, it means that the amount is more than $1.7B. If we assume an average $500 selling price, which I think is reasonable assuming most sales are the Sport model, that puts sales at over 3.5 million units if I did my math right. So sounds like they did about $2.5B in sales of AW for a partial year and limited distribution. Stands to reason that VB's estimate that they'll likely due $5B with AW next year sounds doable to me.

 

[jasie02]

$1B in July, $1.7B in Oct, 70% growth per quarter. Regardless what analysis say about people are no buying AW. Any business will jump on 70% single product quarterly growth opportunity.

 

[foxkoneko]

awesome. Hoping some competition comes out soon before AW2 next year
We need some google watch to at least attempt to challenge the AW

 

[jasie02]

awesome. Hoping some competition comes out soon before AW2 next year
We need some google watch to at least attempt to challenge the AW

Here is problem, 70% grow from AW in smart watch market Apple own at least 70%. I have not hear other smart watch qtr to qtr growth, but sounds like AW is doing great.
If AW is doing great with Gen1, why is Apple in hurry to release Gen2?
They could sit on it until revenue point make sense for Apple.
As I said in another thread, unless Gen2 provide additional cost saving, some Gen1 part is end of life, or 70% smart watch market start shrinking, there is no reason for Apple to release Gen2. Zero, in help increase Apple revenue point of view.
Revenue drive business change and improvement, not wish list from consumer.

 

[foxkoneko]

Here is problem, 70% grow from AW in smart watch market Apple own at least 70%. I have not hear other smart watch qtr to qtr growth, but sounds like AW is doing great.
If AW is doing great with Gen1, why is Apple in hurry to release Gen2?
They could sit on it until revenue point make sense for Apple.
As I said in another thread, unless Gen2 provide additional cost saving, some Gen1 part is end of life, or 70% smart watch market start shrinking, there is no reason for Apple to release Gen2. Zero, in help increase Apple revenue point of view.
Revenue drive business change and improvement, not wish list from consumer.

a year to year release is not being in a hurry
They'll make it like the iphones with a major release every 2 years

 

[convergent]

They probably have a good idea how many of the gen 1 buyers will upgrade, based on similar models with their other products... and that will be growth for them. I don't think a gen 2 will be coming until sometime next year.

 

[jasie02]

a year to year release is not being in a hurry
They'll make it like the iphones with a major release every 2 years

Don't bet on it. iPhone they have to update to keep up with Android.
Until other smart watch catch up on usability, AW is king with 70% market, and no change need for next 2-3 years.

 

[BlueMoon63]

If AW is doing great with Gen1, why is Apple in hurry to release Gen2?

Why would they hurry? Money, money, money with the cash register sounds from dark side of the moon.

Innovate and release new versions draws upgraders and new buyers expanding their base of users to buy more apps and accessories from Apple - Apple Store.

I probably wouldn't want to upgrade if a new one comes out next year but if they add gps and activate/add more sensors and titanium or other nice colors and features... Who knows.

Highly doubt they wait longer than 18 months from now.

 

[ditzy]

Don't bet on it. iPhone they have to update to keep up with Android.
Until other smart watch catch up on usability, AW is king with 70% market, and no change need for next 2-3 years.

Even if what you are saying is true, which I don't believe it is. A major reason to update is to get people who already own an apple watch to upgrade. Why would I buy a new watch identical to the one I own? But an updated one, that's a different animal.

 

[kdarling]

$1B in July, $1.7B in Oct, 70% growth per quarter.

Well, 70% growth in sales deliveries, anyway.

Many online orders made in the original quarter might not have been delivered until the next quarter, which shifts the revenue accounting towards the latter.

(Apple does not count revenue from online sales until the product is delivered to the end buyer. That's why pre-orders and sales are different kinds of reports.)

We'll get a better feel after one more quarter of steady sales and deliveries.

 

[jasie02]

Even if what you are saying is true, which I don't believe it is. A major reason to update is to get people who already own an apple watch to upgrade. Why would I buy a new watch identical to the one I own? But an updated one, that's a different animal.

If you own a business and sell a product which own 70% market, would you make a change on the product every year, which will require you spent more money for development, new material inventory, new final inventory, and scrap old material inventory, but does not gain more revenue, or gain/lost any market share?
Put on your business hat 1st, think about what does it help Apple, not what does it help consumer, which will drive the change of AW release.
For us, it is all about choice on the table not choice does not exist today, if you don't buy AW, and there is no other better option, either you use less inferior smart watch, or you don't use smart watch at all.
Like I say, Apple has zero "financial gain" reason to release another AW next year, and they are in business for $$, not in business of pleasing people without benefit themselves in $$.

 

[jasie02]

Why would they hurry? Money, money, money with the cash register sounds from dark side of the moon.

Innovate and release new versions draws upgraders and new buyers expanding their base of users to buy more apps and accessories from Apple - Apple Store.

I probably wouldn't want to upgrade if a new one comes out next year but if they add gps and activate/add more sensors and titanium or other nice colors and features... Who knows.

Highly doubt they wait longer than 18 months from now.

Why, not 24-36 months or longer?
It always come back to $$$. If there is $$$ gain for new release, Apple will release new AW. If there is no $$$ gain for new release, Apple will sit on current design until there is $$$ gain. It could be 1,2,3,4,5,6,7,8,9,10.... year.

 

[convergent]

Even if what you are saying is true, which I don't believe it is. A major reason to update is to get people who already own an apple watch to upgrade. Why would I buy a new watch identical to the one I own? But an updated one, that's a different animal.

Right, and that also means they need to release incremental new functions that would cause you to want to upgrade.

 

[Mildredop]

more than 100% of growth

Er... is that possible?

 

[ditzy]

If you own a business and sell a product which own 70% market, would you make a change on the product every year, which will require you spent more money for development, new material inventory, new final inventory, and scrap old material inventory, but does not gain more revenue, or gain/lost any market share?
Put on your business hat 1st, think about what does it help Apple, not what does it help consumer, which will drive the change of AW release.
For us, it is all about choice on the table not choice does not exist today, if you don't buy AW, and there is no other better option, either you use less inferior smart watch, or you don't use smart watch at all.
Like I say, Apple has zero "financial gain" reason to release another AW next year, and they are in business for $$, not in business of pleasing people without benefit themselves in $$.

If they don't release a new watch, they don't get any more $ from those who have already bought one. Also they don't get any $ from those who were going to wait for gen 2. Plus I suspect after January sales will slow down because people will wait for the new one.
Not to mention the original iPad had more than 70% market share, and that was still updated pretty quickly.

 

[foxkoneko]

apple already released new colors not even within half a year of the launch. People thinking there wont be anything new next year are delusional

 

[convergent]

Er... is that possible?

Yes, In the Apple revenue category of "other", they said "greater than 100%" of the growth was from the watch. The rest of the category declined and the total growth of the category was $1.7B. So greater than that equals watch sales.

 

[zetaplus93]

Apple will upgrade to product assuming there's a market and they have an idea of where they want to go.

They're perfectionists. There're issues with the current generation that will compel them to make the product even better b cause they want to wear the best they can make. It's as easy as that.

 

[jasie02]

If they don't release a new watch, they don't get any more $ from those who have already bought one. Also they don't get any $ from those who were going to wait for gen 2. Plus I suspect after January sales will slow down because people will wait for the new one.
Not to mention the original iPad had more than 70% market share, and that was still updated pretty quickly.

You forgot about watch band as revenue source. And you also forgot about ratio of AW vs iPhone. They are not getting everyone with iPhone to buy AW. All they need if they get 10% of people has iPhone to buy AW each year, it still will take 10 years for all people with iPhone to buy AW, and no AW will last 10 years. They don't need to release new watch for next couple years.

 

[bobob]

Why would they hurry?

The public has an amazingly short attention span.

 

[ditzy]

You forgot about watch band as revenue source. And you also forgot about ratio of AW vs iPhone. They are not getting everyone with iPhone to buy AW. All they need if they get 10% of people has iPhone to buy AW each year, it still will take 10 years for all people with iPhone to buy AW, and no AW will last 10 years. They don't need to release new watch for next couple years.

The watch band would still be a revenue source with an updated watch. Some people will never buy a first generation apple product. People get put off buying older tech products. As much as I am an early adopter, I'm aware that the second gen is always far better than the first. More sensible and patient people than me are not going to buy the first gen no matter how long it is out.
I believe it is easier to sell a new apple watch to those who are already convinced that they are a good idea. Than selling them to people who are not convinced. Especially when those early adopters are telling them that they should wait for the next one as it will be coming out soon.
I don't think the ratio of iPhones to AW matter.

 

[srshaw]

I'm not convinced bands would be a massive revenue stream for Apple. Plenty of people buy third party products. I for one are now hanging on to see the gen 2 watch. If it's much better I'll get it, and if not then I might get the link bracelet for my current watch.

It would be nice to know if current bands would work with future watches, then I'd definately go out and buy a few more.

 

[jasie02]

The watch band would still be a revenue source with an updated watch. Some people will never buy a first generation apple product. People get put off buying older tech products. As much as I am an early adopter, I'm aware that the second gen is always far better than the first. More sensible and patient people than me are not going to buy the first gen no matter how long it is out.
I believe it is easier to sell a new apple watch to those who are already convinced that they are a good idea. Than selling them to people who are not convinced. Especially when those early adopters are telling them that they should wait for the next one as it will be coming out soon.
I don't think the ratio of iPhones to AW matter.

you certain has a lot of opinion here, just did not see anything based on fact.

Good luck on the wish.