Apple’s quarterly revenue was helped by strong holiday AirPods Pro sales
When Apple reported an all-time report for quarterly revenue Tuesday, it bought an enormous enhance from one in every of its smallest merchandise: the AirPods Pro.
Despite extreme provide constraints, the brand new wi-fi earbuds helped Apple promote $10 billion value of wearables and equipment within the holiday quarter, a 37% bounce from a 12 months in the past, the corporate reported. Revenue for the wearables sector grew 17% to a brand new all-time report of $12.7 billion.
AirPods Pro sales had been ‘phenomenal’
“Demand for AirPods continues to be phenomenal,” mentioned Apple CEO Tim Cook through the firm’s earnings name Tuesday. Apple additionally loved “extremely strong double-digit” development in China for its wearables enterprise, which incorporates the Apple Watch and AirPods, in keeping with Cook.
Apple not stories particular person unit sales figures. However, Bernstein analyst Toni Sacconaghi estimated on Monday that AirPods generated about $6 billion in revenue in 2019, nearly double that of the unique AirPods sales numbers in 2018.
“As a result of Apple disclosing virtually nothing about their financials, we believe AirPods are probably the most under-appreciated part of Apple’s business today,” Sacconaghi mentioned.
AirPods Pro provide issues easing slowly
The rosy numbers got here regardless of provide shortages for the $249 AirPods Pro since their launch final October. The AirPods Pro provide constraints persist, with transport dates presently extending out a month or so. In truth, Cook mentioned he merely doesn’t know when provide will catch up for demand for the favored earbuds.
“On AirPods Pro, I don’t have a estimate for that for you,” Cook mentioned. “I just can’t predict when at this point. We seem to be fairly substantially off there. And we’re working very hard to put in additional capacity.”
Cook didn’t reveal numbers of recent prospects for the AirPods Pro, however did say the noise-cancelling wi-fi earbuds “did very well.”
Analyst Daniel Ives from Wedbush Securities mentioned final quarter that the entire variety of AirPods shipped in 2019 might hit as 65 million. That quantity might develop to 90 million in 2020, he mentioned.
In November, Apple mentioned AirPods Pro sales had been going so properly that the corporate was doubling manufacturing. That bounce wasn’t sufficient to fulfill demand. Shortages at Christmas — each in-store and on-line — grew to become an unwelcome actuality for some consumers. In late November, Apple’s web site confirmed that a set of AirPods Pro wouldn’t ship till after the vacations.
// stack social data