Home News The Analyst Says That The Wearable Unit Is Apple’s Growth Engine Right...

The Analyst Says That The Wearable Unit Is Apple’s Growth Engine Right Now

During Apple’s third fiscal quarter, which covered the months from April to June, the company’s wearable unit was the star of the show. During the period, iPhone sales fell 12% year-on-year, but revenues from portable devices increased by 48.3%. The division includes popular devices such as Apple Watch and Bluetooth wireless AirPods, both leading products in their respective categories, and quarterly revenue for the group increased from $3.73 to $ 5.53 billion a year.

Today, UBS analyst Tim Arcuri said that the unit is moving the needle for Apple’s overall growth and that investors and other analysts underestimate it. He emphasized that, for the first time in the company’s history, during the third fiscal quarter, year-on-year growth in mobile devices exceeded the year-on-year growth in the services segment. The latest unit includes Apple Music, Apple Pay, iCloud, Apple News +, App Store, Apple TV +, AppleCare and more. This division is Apple’s second-largest and is the most profitable; While services generated record revenues of $11.05 billion in the period, that was just a 12.7% gain compared to the $10.2 billion that the segment picked up in the same quarter last year.

Third-generation AirPods could arrive in the fall with water protection and noise cancellation

airpods

Arcuri says that AirPods show a “phenomenal demand”, while only 7% of iPhone users have a pair. This leaves a lot of space for the sale of the accessory to continue moving forward. Earlier this year, Apple released a second-generation version of the Bluetooth wireless headphones that exchange the W1 chip with the new H1 component. The new chip extends the battery life of the device by improving latency. This means that changing devices while listening to music on an iPhone, Apple Watch or iPad is easier than ever with connection times twice as fast. The new AirPods also have Siri always on and can be purchased with a wireless charging case. If the new iPhones have reverse wireless charging as many expect, the new feature could be used to charge AirPods into the wireless charging case.

The third-generation AirPods, probably launched in the fall, should have many of the features that were missing from the model launched last March. These AirPods should be water-resistant, made of a material that makes them “stickier” and less likely to fall out of users’ ears and includes noise cancellation. There is also the possibility of offering different colors.

As for the Apple Watch, TF International’s leading analyst, Ming-Chi Kuo, said in a research report published today that the company’s 5 Series watch will be presented alongside the 2019 iPhones; It should take place on September 10th. The next version of Apple’s smartwatch will be released this fall, says Kuo, and will look a lot like the current Series 4 model.

With sales of troubled iPhones, Apple had the service unit to grow. It was awarded $50 billion in revenue by 2020, double the $25 billion that the segment collected in 2016. But both its smartwatch and ear accessories showed greater demand growth. During the second quarter of the calendar, Apple sent 5.7 million smartwatches compared to the 3.8 million delivered in the same period last year. This is a 50% growth rate. The entire sector sent 43.6% more units in the second quarter of 2019 compared to the same three-month period exactly a year before. Meanwhile, last year, Gartner estimated that the number of earphones shipped by manufacturers around the world will increase from around 46.12 million units this year to an astonishing 158.43 million by 2022.

(Via: Seeking Alpha)

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