Apple clocks $1 billion from Watch sales?

Everyone wants to know whether Apple CEO Tim Cook generated enough money from Watch sales in its latest quarter.

Juniper Research estimates that the revenue from Apple Watch sales can be nearly $1 billion from 2 million to 2.5 million units.

To analysts’ calls, Tim Cook did not give any response when he announced the quarterly result, citing competitor interests.
Watch revenue was part of the Other Products category. 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 percent of the growth of the category,” thanks to declining sales of the iPod and accessories.
Apple Watch
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.

Juniper Research estimates that Apple sold more than 2 million Watches. The revenue calculation was done based on the following factors.

The segment has been on a ecline of approximately $200 million until the Apple Watch launch. If we assume a similar decrease this quarter, Watch revenue was approximately $1 billion. This figure only results in more than 2.5 million units if the Apple Watch Sport has a 75 percent or greater share of the product line’s revenue.

Juniper devices analyst James Moar said these figures mean that Apple Watch sales to date are most likely between 2 and 2.5 million. “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.”

Baburajan K
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