Tim Cook: Apple Watch Sales 'Exceeded Expectations'

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As expected, Apple did not share specific sales numbers on the Apple Watch during its third quarter earnings call, but Apple CEO Tim Cook did shed some light on how well the Apple Watch did during its first quarter of availability. According to Cook, Apple Watch sales "exceeded expectations" despite supply continuing to trail demand at the end of the quarter. "We feel really great about how we did," he said.

Cook also pointed out that Apple Watch sales during its first nine weeks of availability were higher than sales of the original iPad and iPhone when those devices first became available for sale. June sales, he said, were higher than those in April or May, suggesting reports of falling demand in June were inaccurate.


Apple includes the Apple Watch in its "Other Products" category in an effort to keep its competitors from getting a detailed look at its shipments. Other Products includes the Apple Watch, the iPod, the Apple TV, and accessories like Beats headphones.

During the third quarter of 2015, the Other Products category saw $2.6 billion in revenue, up from $1.7 billion during the second quarter of 2015, a difference of nearly a billion.

Cook said it "would not be accurate" to look at sequential change or year over year change and assume that number represents the actual Apple Watch revenue because there are a lot of factors at work, including declining iPod and accessory sales, which are also included in the category. In a statement made to the Associated Press, Luca Maestri said something similar, suggesting revenue from the Apple Watch amounted to "well over" the $952 million increase between the two quarters.
Chief Financial Officer Luca Maestri told The Associated Press that revenue from the watch was "well over" that $952 million increase. He said the category also includes revenue from iPods and accessories, whose sales fell in the quarter.

"We beat our internal expectations" for the watch, Maestri said, adding that the number of watches sold in the first nine weeks was greater than the number of iPhones or iPads that the company sold in a comparable period after those products launched.
Aside from analyst estimates that range from an estimated 2.85 million sales to 5.7 million, that rough $1 billion revenue figure that accounts for the difference between Q2 and Q3 is the closest we've come to learning how many Apple Watch devices Apple sold.

Cook went on to say that beyond the "very good news in sales," Apple is excited about how the Apple Watch is positioned for the long term. There are now 8,500 apps available for the device, and the company is poised to release watchOS 2 in the fall, which will bring native apps and performance improvements. "We believe the possibilities for Apple watch are enormous," said Cook.

Article Link: Tim Cook: Apple Watch Sales 'Exceeded Expectations'
 
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c55

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May 3, 2015
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Their expectations I'm assuming were "Only the die hard tech customers and the curious bunch will actually buy this, and they did."

Edit:
Pebble: over a million
Moto 360 and Android: 720k since early 2015
Samsung Gear(s): estimated 1.2 million devices shipped since and of 2014, 800k in 2013
 
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coltman75

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Jun 22, 2010
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Especially over the last few weeks, I feel like I've been seeing the watch pop up everywhere. This morning, my barista at Starbucks had one on. I was in a meeting at work yesterday, and four different people had Apple watches on—all stainless steel. Even when I was going for a run, it seems like most people who wear watches while running are wearing Apple watches. I think these are going to be ubiquitous in the next couple years.
 
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RDeckard

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I can't wait to read all of the insightful opinions, which dissect Apple's financial performance, right here!

Because we all know that this is where all of the "super-savvy financial analysts and investors" (with huge stock portfolios) hang out, right?
 

keysofanxiety

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Doesn't seem all that strong to me, but I must admit, I have always been extremely skeptical of this product.
You and me too, I can't help but remember the comments on MR after the Galaxy Gear was released, laughing how Apple wouldn't release something with less than 2 days battery life and a touchscreen/simple zoom interface. As far as I can see it's just a nicer version of a Gear. Nobody I know who's tried it has said its interface was intuitive like the iPhone immediately was, though they'll 'learn to love it'. =/

Ah well, I'm not one to judge on how people spend their money. If it works for them and it's a useful tool, it's good that Apple have a product in the wearable market.
 

Reds622

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May 9, 2014
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I can't wait to read all of the insightful opinions, which dissect Apple's financial performance, right here!

Because we all know that this is where all of the "super-savvy financial analysts and investors" hang out, right?
Are we allowed to use information we get from those who are? Or are they off limits as well?
 
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RDeckard

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Are we allowed to use information we get from those who are? Or are they off limits as well?
You mean, like Wall Street "analysts?" Sure, if it makes you feel better!

But those jamokes are wrong the VAST majority of the time too.
 
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Reds622

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You mean, like Wall Street "analysts?" Sure, if it makes you feel better!

But those jamokes are wrong the VAST majority of the time too.
Vast majority of the time when they are privy to the actual data? Not so sure about that.. The numbers are the numbers. There is an increase in the "Other" category provided by Apple.. A reasonable estimate can be gleaned from this number. So not sure what you're really talking about. Unless you're saying Apple is lying about it's own numbers.
 
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RDeckard

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They have given a pretty good indication of how many they have sold so why not be transparent.Im all in on the watch but can't persuade anyone I know to get one despite them mostly having more money than me and being impressed with what it can do.
They're not being "transparent" because, as I mentioned in the previous MR post, Tim Cook said that Apple would NOT be reporting those numbers months before the watch even went on sale.
 

RDeckard

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Sep 23, 2013
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So not sure what you're really talking about. Unless you're saying Apple is lying about it's own numbers.
I'm saying that those Wall Street analysts/jamokes are usually wrong about most things, especially when it comes to Apple.
 
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