What you need to know
- AirPods are thought to have a blackbuster holiday quarter.
- One analyst believes they will outpace iPods at their peak.
- But it's difficult to be sure because Apple doesn't break its numbers down.
AirPods are likely to have what will amount to a blockbuster holiday quarter, with one analyst believing sales will be so strong that they could best the $4 billion quarterly revenue the iPod managed at its peak in 2007.
That comes in a research note from Asymco (via 9to5Mac in which the $4 billion number is mooted. However, it's difficult to know for sure just how many AirPods are sold because Apple doesn't break its numbers down. Instead, they're lumped in with things like Apple Watch and HomePod.
The problem lately has been that AirPods have become huge unto themselves. There is literally no information about AirPods sales as a product category. The only option is to guess Watch and subtract it from Wearables and then guess again the portion of "non-Watch Wearables & Home" that is AirPods.
Alongside the huge AirPods numbers, Asymco also notes that Apple may see better than 50% growth for its Wearables category.
Looking forward to the next quarter, I am expecting a 51% increase y/y for Wearables and 24% growth in Watch. This results in a Watch revenues about $5.2 billion and non-Watch $5.7 billion. Now if we assume $1.7 billion for non-Watch-non-AirPods (i.e. Apple TV, HomePod, Beats, iPod, other) then this quarter AirPods will have overtaken peak iPod.
AirPods sales have recently been boosted by the arrival of the impressive AirPods Pro.
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