Apple is also known as the “iPhone company,” as a result of that’s the product that’s pushed nearly all of Apple’s sales for years.
Since 2012, the iPhone has accounted for over half of Apple’s income for every single quarter. However that streak broke when Apple reported earnings on Tuesday — as an alternative, Apple’s largest product only accounted for 48% of complete sales, and iPhone sales have been really down 12% from last year.
But Apple beat expectations, and total income was up from a year ago.
Apple CEO Tim Cook called it a “blowout quarter” for its wearables product category and stated there was “phenomenal demand” for the $159 AirPods.
Apple mentioned that Wearables, Home and Accessories sales totaled $5.53 billion in the latest quarter, which was a massive beat — analysts surveyed by FactSet have been only expecting sales of $4.59 billion, practically a billion less than the actual number.
It’s exhausting to do a year-over-year comparison, as a result of Apple rearranged its product classes late last year. However, Apple Watch and headphones were in a class known as “Other Products,” which totaled $3.7 billion in the identical period last year.
Apple doesn’t break out unit sales anymore, and by no means did for products like Apple Watch, so it’s unclear precisely which products are driving the expansion, however Cook mentioned that wearables by itself — not accessories — was up “well over” 50% and was the size of a Fortune 200 firm over the past 12 months.