From a note to Above Avalon subscribers posted Wednesday by Neil Cybart:
Despite not disclosing Apple Watch sales, Apple management continued the trend of giving very helpful clues as to how the device sold.
Apple said Apple Watch sales nearly doubled year over year. In addition, management disclosed Apple Watch unit sales more than doubled in six of Apple’s top 10 markets. The commentary suggests while revenue trends nearly doubled, overall unit sales more than doubled as Apple Watch ASP declined year-over-year. Since we know Apple sold somewhere around 1.6M Apple Watches in 2Q16, Apple likely sold 3.2M Apple Watches last quarter.
As seen by year-over-year growth trends, 2Q17 was a very big quarter for Apple Watch.
Click the “Change year over year” button to see growth rates. Not seeing the interactive chart? Try the website.
Cybart’s Q2 unit sales estimate before yesterday’s results was a paltry 1.9 million. After the results, in which Apple reported Other Products revenue of $2.87 billion, he followed the guidance of his own chart (copied below) and jumped all the way to 3.2 million.
Cybart follows the wearables market as closely as anyone I know. See also today’s Apple Earnings Smackdown, which Cybart won handily despite badly underestimating Apple Watch sales the first time around.