Apple hits $1 billion revenue in smartwatch sales in just 87 days

NEW DELHI: Tech giant Apple has sold between 2 and 2.5 million watches this quarter, which has lead to about $1 billion in revenue, according to Juniper Research.

This has proved to be the best selling smartwatch in the market, with over 6 million sales expected by year-end. Apple is the biggest smartwatch seller yet with over 2 million units, says Juniper Research.

Although the watch revenue has been part of the Other Products category, Tim Cook did mention that ‘It would not be an inaccurate thing to look at the sequential revenue, the year-over-year change and assume that was the total watch revenue.’ Apple CFO Luca Maestri clarified this by stating that ‘The contribution from Apple Watch accounted for well over 100% of the growth of the category’, thanks to declining sales of the iPod and accessories.

Apple’s Fastest-Selling New Product Yet

Depending on the average selling price of Apple Watch the y-o-y revenue increase indicates between 1.5 and 2.5 million units. Apple CFO Luca Maestri also remarked that the Watch has sold more than the first iPhone or the iPad in a comparable period – that is 87 days. The first iPad was the better selling of these two, and sold 2 million in 60 days. Given the above, Juniper Research assumes that there have been more than 2 million watch sales so far.

Juniper devices analyst James Moar remarked: “These figures mean that Apple Watch sales to date are most likely between 2 and 2.5 million. This makes it the most successful smartwatch launch to date, with no other launches coming close in a comparable time period. However, despite buyers being satisfied with the device, we continue to see that the product is running out of steam. We would also expect a decline in sales following launch, especially as H1 draws to a close. This means we are unlikely to see more than 7 million Apple Watches sold by the end of 2015, even with a boost to sales over the Christmas period.”

Source:Dataquest