The Apple Watch is a $1 Billion Success
The Apple Watch is the next big thing in tech. All the app developers are tracking its performance, all the consumers are watching on with interest to see if, or when, they need to get on board. And now we have the first indication of how, exactly, the Apple Watch is being received – for their first ever Apple Watch Customer Satisfaction report, Apple Watch research group Wristly surveyed 800 Apple Watch users to get their thoughts and opinions on the device. And the results, particularly in comparison to other Apple products, certainly reveal some interesting perspectives.
As expected, Apple slotted the Apple Watch into its “Other Products” category, which includes the Beats headphone business, iPods and Apple TV. Apple finally released revenue numbers, for its first wearable as part of its Q3 earnings report. The total sales for the category – $2.64 billion – pale in comparison to the iPhone’s $31 billion in quarterly sales. Even so, the number tells a tale. Here’s what I was able to deduce moments after the release hit the wires.
The revenue growth from Q2 to Q3 was $1.2 billion, a figure I attribute to the Apple Watch. Guessing that sales of the wearable had to account for the majority of the growth in a collection of products that had been seeing quarter-over-quarter declines.
Granted, $1 billion in sales might translate into a mere 2 million units sold, if you assume an average sales price of $500. The watch starts at $349 and can cost well over $1,000. But the overall unit sales number could be higher if you assume that the majority of customers bought the $349 Apple Watch sport.
If Apple sold 3 million Apple Watches (a number on the high end of anyone’s expectations, but at least inching closer to some analysts estimates), it would account for approximate $1.5 billion of the $2.6 billion quarterly revenue number. That seems unlikely, but I don’t think anyone should peg Apple Watch sales at anything less than 2 million.
$1 Billion in sales and 2 million sold – That sounds like a hit.