- 31st July 2019
- Posted by: Hakeem
- Categories: Innovation, Technology
- Apple’s iPhone made up less than half the company’s sales for the first time since 2012.
- But Apple has a new product category picking up the slack: wearables, which includes Apple Watch and AirPods.
- Apple CEO Tim Cook says that it’s doing extremely well and that competitors didn’t stick with the product category.
Apple is often referred to as the “iPhone company,” because that’s the product that’s driven the majority of Apple’s sales for years.
Since 2012, the iPhone has accounted for over half of Apple’s revenue for every single quarter. But that streak broke when Apple reported earnings on Tuesday: Its biggest product accounted for only 48% of total sales, and iPhone sales were actually down 12% from last year.
Yet Apple beat earnings expectations, and total revenue was up from a year ago.
The main product category picking up the slack? What Apple calls “wearables” — the category including Apple Watch, AirPods wireless earbuds and Beats headphones.
Apple CEO Tim Cook called it a “blowout quarter” for its wearables product category and said there was “phenomenal demand” for the $159 AirPods.