The July 21 third quarter earnings report didn’t showcase any specific Apple Watch sales, and the conference call afterwards didn’t shed any firm numbers, either, but the hints were certainly there.
Apple’s CEO, Tim Cook, spoke in brief parts about the Watch, not giving away anything specific just yet (if ever) regarding Apple’s wearable, but for those that were trying to figure out just how well the Watch has done since its launch in April, there were some hints to take notice of.
According to Cook, Apple Watch sales have “exceeded expectations” so far, and noted several times that demand for the wearable outstripped availability for quite some time after availability was opened up. In fact, that supply trailed demand until the very end of the quarter, according to Cook. He added that he feels “really great” about how well the Watch has been doing.Cook also noted that initial sales of the Watch exceeded sales of the original iPhone and iPad back when those products first became available, too.
It’s worth noting that Apple does include the Watch within its “Other Services” category, where the likes of the Apple TV reside, for instance, and that specific category saw a big boost this quarter. Specifically, that category saw $2.6 billion in revenue, up from the $1.7 billion in revenue that the category received in the second quarter of 2015. Cook, for his part, said that “it would not be inaccurate” to look at the sequential change year-over-year and infer that that’s the Apple Watch revenue making a large chunk of that. That would suggest the Watch’s revenue is around $1 billion or higher.
Cook added that Watch sales were higher in June than they were in April and May. It would be hard to ignore that shipping dates for the Watch variants were relatively quick in June, so it would appear that many buyers were waiting until they didn’t have to wait weeks and weeks to get their device after their purchase.
There’s no real doubt that the Apple Watch has been selling quite well, and Cook even noted that customer satisfaction is quite high for the wearable, so the device is proving quite lucrative for the company.
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