Apple Watch Sales History from 2015 to 2018: 3+ Years and 50+ Million Units in the Making

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Even as Apple introduced throughout its final quarterly earnings name that it’ll now not share iPhone, iPad and Mac unit gross sales, the focus is steadily shifting to the Cupertino large’s different merchandise – actually.

Among these, Apple Services, comprising Apple Pay and Apple Music have been cited as the most promising future pillars of income assist now that iPhone gross sales are trying softer and softer every year. But there’s one other hidden gem that’s greater than carrying its weight because it was launched almost 4 years in the past – Apple Watch. It is presently a part of the Other Products reporting section, bundled with iPod, Beats, Apple TV and Accessories.

Later this month, on January 29, 2019, Apple might be saying its first quarter earnings for the quarter ended December 29, 2018. This is the essential vacation quarter, and Apple inventory has already been hit by the information of sentimental income progress. But what about the darkish horse in this race – Apple Watch?

Selling properly below 10 million models each quarter, Apple Watch isn’t precisely going to save the day for Apple. However, it has grown to be a predictable and future-ready a part of their total enterprise. How many models of Apple Watch has the firm offered since the product was first launched to the market? Let’s observe the gross sales thread from launch till the finish of the final reported quarter.

Tracking Apple Watch Sales from 2015 by means of 2018

When it was first launched and made obtainable to the public in April 2015, it rapidly scaled the gross sales charts to hit Four million models offered in the second quarter of 2015, technically Apple’s Q3 2015.

According to the quarterly report for the interval, Other Products made roughly $2.64 billion in revenues, up from $1.69 billion throughout the earlier quarter (Q2.) Much of that progress got here from Apple Watch gross sales, which third-party sources depend at about 4.2 million models in the quarter when the product was launched.

Apple solely bought Beats throughout the following quarter, or This fall, which implies any income progress between Q2 and Q3 would exclude Beats gross sales. If we contemplate comparatively secure gross sales for the different merchandise in the Other Products class, akin to iPod, Apple TV and equipment, it’s clear that Apple Watch drove a lot of that progress.

At the time, IDC reported that Apple Watch shipments had been at round 3.9 million models for the quarter. Most analysts put it at between Three million and 5 million models, which is a fairly shut match. Research agency Canalys estimated it at 4.2 million models shipped.

Taking a mean of Four million and multiplying that by the beginning value of $350, that quantities to about $1.Four billion in income, at a minimal. The income soar throughout the quarter in which it was launched was shut to $1 billion, which implies Apple offered fewer of the different merchandise throughout the interval in query, however section revenues had been ably held up by Apple Watch and, presumably, Apple TV.

Apple Watch gross sales held regular over the September quarter of 2015 as Apple Watch expanded into extra markets. The Other Products section reported about $400 million in sequential income progress over Q3. While that boded properly for Apple Watch, a few of its section siblings clearly took successful as soon as once more.

The majority of estimates put Fiscal 2015 Apple Watch gross sales someplace between 15 million and 20 million models. Even at the beginning value of $350, that’s between $5.25 billion and $7 billion in revenues. It’s nonetheless a drop in the ocean that was Apple’s total income for 2015 – almost $234 billion – however it was a big drop for Apple nonetheless. It proved that Apple Watch was in the recreation to keep and compete in opposition to Android rivals like Samsung, FitBit and Garmin.

The fourth quarter of 2015, or the essential vacation quarter ended December 26, 2015 (Apple’s Q1 2016), was one among the greatest for Apple Watch. So good, in truth, that the firm put it proper subsequent to the iPhone at the high of their media alert (press launch):

“iPhone, Apple Watch, Services & Apple TV Drive All-time Record Revenue”

Even although Apple TV continued to promote properly throughout the interval, Apple Watch was now elevated to an esteemed place proper subsequent to iPhone. Estimates put Apple Watch gross sales at round 5.eight million models for the vacation quarter. The solely drawback was that the estimates various wildly relying on the supply:

Apple Watch sales estimates Fiscal Q1 2016 - quarter ending December 2015Source: Fortune

Regardless of the wide selection of estimates, one factor was plain: Apple Watch had come of age. By the finish of Fiscal 2015, Apple Watch had offered not less than 15 to 20 million models. The greatest was but to come.

The first quarter of Fiscal 2016 was off to an ideal begin the place Apple Watch was involved. But did it maintain up for the remainder of the yr?

In Q2 2016, the March quarter, Apple Watch gross sales merely “met expectations”, in accordance to Apple CEO Tim Cook.

Source: Six Colors

Cook additionally indicated that transferring ahead Apple Watch gross sales could be extra seasonal, like the iPod. So, gross sales weren’t precisely disappointing, however they didn’t match up to the earlier quarter’s efficiency.

In the third quarter of 2016 (June quarter), Cook took a unique tone when he talked about Apple Watch. Saying nothing about gross sales, he as a substitute pointed to a JD Power survey and cited the excessive buyer satisfaction score. That’s not one thing you do when gross sales are on hearth, which they clearly weren’t. The following quarter was even worse.

For Fiscal 2016 fourth quarter (September quarter), IDC estimated a gut-wrenching 71% gross sales drop on a year-over-year foundation, with their determine coming it at 2.7 million models. Was this seasonality, as Cook stated, or was the Apple Watch lastly coming to the finish of its line?

However, the subsequent quarter bore out Cook’s projection from earlier that yr. In the vacation quarter of 2016 (Apple’s Q1 2017), Apple Watch gross sales surpassed all expectations. Here’s what Cook stated round the starting of that quarter:

“Our data shows that Apple Watch is doing great and looks to be one of the most popular holiday gifts this year. Sales growth is off the charts. In fact, during the first week of holiday shopping, our sell-through of Apple Watch was greater than any week in the product’s history. And as we expected, we’re on track for the best quarter ever for Apple Watch.”

When the outcomes of Q1 2017 (December quarter) lastly got here, Cook was vindicated:

“We sold more iPhones than ever before and set all-time revenue records for iPhone, Services, Mac and Apple Watch.”

By the finish of the 2016 vacation quarter, Apple Watch Series 1 and Series 2 had been launched, and had a beginning price ticket comparable to their predecessor. But that they had added capabilities due to watchOS 3, which introduced the Dock, Activity sharing, the Breathe app and SOS, amongst different key options. Little marvel that Apple Watch offered properly throughout that quarter.

The following quarter (March quarter 2017, Apple’s Q2 2017) noticed Apple Watch Series 2 blaze by means of to the high of gross sales charts. It was again in the recreation with an estimated 3.5 million models shipped throughout the quarter (Strategy Analytics), a 59% enhance over the similar interval in 2016, when solely 2.2 million units had been estimated to be shipped. Apple Watch was now the best-selling smartwatch in the world.

During the similar quarter, the Other Products section had jumped 31% in revenues, with Apple Watch and Apple TV main the approach. Cook particularly stated that Apple Watch income had doubled over the prior interval, which was a validation of Strategy Analytics’ progress estimate of 59%. As a extra mature product now in its second technology, Apple Watch was holding its personal even after the vacation quarter.

In Apple’s Q3 2017 (June quarter) earnings name, Cook stated that Apple Watch had offered 50% extra models than the similar quarter throughout the earlier yr. Sales had been nonetheless holding robust, and Ben Bajarin from Creative Strategies estimated that Apple Watch gross sales throughout the June quarter had been between 2 million and Three million models. Was gross sales progress right here to keep?

Then got here the September quarter when Apple Watch Series Three was introduced. For the third time, gross sales grew 50% yr over yr. And the vacation quarter was but to come. The market was way more conservative, solely anticipating a 20% YoY progress price. Apple Watch had gained but once more.

During the 2017 vacation quarter (Apple’s Q1 2018), Canalys estimated that Apple Watch offered a whopping eight million models. Apple Watch Series Three introduced mobile capabilities, and it seems to be like the market was ready to pounce on it.

Through the finish of 2018, Apple continued to dominate the sensible watch market. Apple Watch marketshare for 2017 was a hefty 53.1% in 2017, in accordance to IDC. 2018 was off to an ideal begin, with Apple’s smartwatch capturing a still-impressive 47.1% marketshare throughout the first quarter.

IDC says that in the first three years since its launch, Apple offered greater than 44.6 million models, or greater than half of all sensible watches offered throughout that interval globally. Data from Asymco exhibits a considerably related determine of 46 million models, with a 40 million to 43 million person base.

Total Apple Watch Sales Estimated at 46 Million [Chart]

That was the estimate till the first quarter of 2018 (Apple’s Q2 2018), for which quarter Cook boasted “strong revenue growth in iPhone, Services and Wearables.”

Since then, iPhone gross sales appear to have plateaued out, and Cook has already warned traders to be careful for a smooth Q1 2019. But Apple Watch appears to preserve scaling new heights. The final reported quarter as soon as once more noticed a 50% YoY gross sales soar for Apple Watch, with IDC reporting 4.2 million shipments over the prior interval’s 2.7 million estimated shipments.

With Apple Watch Series Four now in the recreation with gorgeous new options and capabilities like Bluetooth assist, gross sales are seemingly to be very shut to or have already exceeded the 55 million mark. We’ll have a clearer image when we get Q1 2019 income figures for Other Products, in addition to estimates from analysts and analysis corporations.

One factor is for certain. Apple has discovered an actual winner in Apple Watch. While it doesn’t promote almost as a lot as iPhone each quarter, we have to keep in mind that that is nonetheless very a lot a distinct segment section. But the future seems to be vivid regardless of the undeniable fact that 2018 was seen to present a slowdown in the wearables section as a complete. According to Ramon T. Llamas, analysis director for IDC’s Wearables group:

“The slowdown in the worldwide wearables market is a sign that this is a market in transition instead of a market in slowdown. Vendors are slowly moving beyond first-generation devices and experiences, bringing together an ecosystem of partners and applications for improved user experiences that reach beyond step counting. The wearables of tomorrow will play a more prominent role in communication, digital health care, home IoT, and enterprise productivity that will make last year’s wearables look quaint.”

Apple is critically targeted on the digital well being section with Apple Watch, and the app ecosystem round it’s rising as properly. New function additions like the ECG app will proceed to spawn new strains of well being apps for Apple Watch. And gross sales will proceed to develop at a wholesome tempo.

Why Doesn’t Apple Report Apple Watch Sales Figures?

Cook has stated many occasions that the firm doesn’t report Apple Watch gross sales for a cause – rivals need that knowledge as a lot as analysts do.

“To be straight, I am not very anxious in reporting a lot of numbers on Apple Watch because our competitors are looking for it. So aggregating it is helpful from that point of view as well.”

Now that Apple Watch is clearly the market chief, will Apple begin breaking out the Other Products section, particularly for its wearables? That’s not very seemingly, and it won’t be for the similar cause that iPhone, iPad and Mac unit gross sales gained’t be reported any extra.

We don’t assume Apple will readily supply details about Apple Watch gross sales at this level. The section that it’s in is but to be explored totally, and remains to be a drop in the ocean with $4.2 billion in revenues for the final reported quarter – This fall 2018 – in opposition to total quarterly revenues of almost $63 billion.

We don’t know if Apple will ever begin reporting Apple Watch gross sales, however what we do know for positive is that Apple has discovered an ready income pillar for the future. It’s small, however it’s persistently rising in robust double digits, and Apple Watch is a big a part of that progress.

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