The portable sector is becoming more and more profitable for Apple. After doubling production of AirPods Pro for global demand, Apple Watch sales are so good that they clip iPod sales.
In a research note, Asymco analyst Horace Dediu has used his own model to analyze past and present sales data for the Apple, home and accessories categories over the past 15 years. The analyst concluded that Apple surpassed the "Peak iPod" with only the Apple Watch.
This analysis helped me conclude that the Apple Watch has surpassed the historic peak of the $ 4 billion iPod that occurred in the fourth quarter of 2007. In 2018, Apple Watch reached $ 4.2 billion in the fourth quarter.
Dediu then points out that neither growth nor revenues show signs of declining year after year, to the point of predicting a 51% year-over-year increase for portable devices, with a 24% increase for Apple Watch alone. If its forecasts are correct, it means that the Apple Watch will report $ 5.2 billion in the fourth quarter of 2019.
These figures are even more resounding when you consider that the iPod was a real cultural phenomenon that saved the image of Apple. The iPod also laid the groundwork for the iPhone and everything that followed, so from 2005-2007 Apple was dubbed iPod company . To think that the Watch today – a device that is still marginal in the coffers of Apple – alone exceeded the income of iPods in the golden age makes us understand how the company has grown in recent years.
The analyst then estimates that revenues from Apple wearable devices will exceed those of Macs, after having exceeded revenues from the iPad.