Neil Cybart: Apple’s wearables business gets no respect

From “Apple Deserves More Credit for Wearables,” posted free on Above Avalon:

The wearables era at Apple began years ago. However, Wall Street and Silicon Valley are only now slowly starting to pay attention to what Apple has been building. Apple is the undisputed leader in wearables, and they are pulling away from the competition…

On a revenue basis, Apple’s wearables business is now at a $16 billion annual run rate growing at 55% to 60%. At the current pace, wearables will surpass both the iPad and Mac near the end of 2020 to become the third largest product category behind iPhone and Services when looking at revenue.

One way of thinking about Apple’s wearables business is that it’s a train gaining momentum. Competitors face declining odds of being able to stop the train.

cybart apple wearables respectClick to enlarge. 

My take: Wearables got respect on the Street, but it lasted only as long as Trumps’ next tweet.

4 Comments

  1. Gregg Thurman said:

    PED, you’re up early today. What’s going on?

    0
    August 12, 2019
  2. Gregg Thurman said:

    WS, and Apple’s “competitors”, makes me think of the punch drunk fighter who is always looking for the left jab, and doesn’t see the right cross coming.

    2
    August 12, 2019
  3. Fred Stein said:

    Totally agree; Been touting this for a while.

    The long arc of computing is that smaller is the next big thing. No big insight, right? Apple leads in Watches from the chip to market share to the OS and to the burgeoning App ecosystem.

    Almost no one reports on Apple’s lead in wearable OS. Its way beyond numbers. The only Open System OS, Android’s Wear OS, remains in the also ran category. Recently Huawei announced that they may go independent from Android.

    Eventually we’ll see Apple Watch 5G. What else will Apple do with that tiny highly intetrated system on a chip with CPU, Neural Net, Comms, sensors etc

    0
    August 12, 2019
  4. Dan Scropos said:

    This could be a business segment north of $100 billion in 5-7 years, when you model the runway for the current offerings, plus Apple Glasses and StudioPods. Services+Wearables+iPhone=$$$ With proper execution, those 3 segments could comprise $300 billion in aggregate annual revenue.

    0
    August 12, 2019

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