Apple’s Wearables line continues to rise in popularity, with the category setting a new all-time revenue record for the first quarter of 2020. According to Apple CEO Tim Cook, the category hit an impressive $10 billion in Q1 2020, which is up from $7.3 billion in Q1 2019.
As for what the Wearables category is, it includes Apple Watch, AirPods, Beats headphones and HomePod. Not only did this category set an all-time revenue record, but it also marks the first time that it surpassed Mac revenue, with the latter’s revenue being $7.2 billion in Q1 2020.
Apple’s CEO Tim Cook said that the company was unable to make enough AirPods and Apple Watch Series 3 devices to meet demand during the quarter, with supplies continuing to be low. This is likely due to the fact that the prices for both devices have decreased, seeing as both the Apple Watch Series 5 and AirPods Pro are the current latest and greatest for each line. Despite the shortage, he claims (to Reuters) that they are working hard to get the supplies ready to meet demand.
To further add to these numbers is the statistic of more than 75% of new customers during the quarter being new to Apple Watch. Both the Apple Watch and AirPods were “must have” Christmas gifts, which accounts for a large portion of these impressive sales numbers.
Topping all of this off is Apple’s Tim Cook claiming that their wearables business is now the size of a Fortune 150 company. While it’s quite a statement, it really isn’t surprising when you see how innovative and top-of-the-line both the Apple Watch and AirPods have been. The Apple Watch has been making huge improvements in the health/fitness category, and the AirPods have made wireless headphones much more accepted than they were even just a few years ago.