Apple's wearables business grew 30% to a new record of $13 billion - TechnW3

Tim Cook also points to services like Apple Fitness+ as drivers for future wearables growth.

What you need to know

• Apple's wearables business hit a record-breaking $13 billion in revenue in Q1 2021.
• Each segment set its own individual revenue record as well.

During the Q1 2021 earnings call today, Apple announced that its wearables, home, and accessories business grew 30% year over year to a new first-quarter record of $13 billion.

Luca Maestri, Apple's Chief Financial Officer, says that this performance has now solidified this segment of Apple's business as a Fortune 120 company all on its own. He also revealed that, despite Apple Watch being available since 2015, over 75% of customers purchasing a watch were new to the device.

Wearables, Home and Accessories grew 30% year over year to $13 billion, setting new all-time revenue records in every geographic segment. As a result of this strong performance, our wearables business is now the size of a Fortune 120 company. Importantly, Apple Watch continues to extend its reach, with nearly 75% of the customers purchasing Apple Watch during the quarter being new to the product. We're very excited about the future of this category, and believe that our integration of hardware, software, and services uniquely positions us to prove it, to provide great customer experience in this category.

Tim Cook also touched on wearables earlier on the call, saying that each of the segments set new revenue records of the holiday quarter. He also pointed to services like Apple Fitness+ as future drivers for wearables performance.

Wearables, home and accessories grew by 30% year over year, driven by significant holiday demand for the latest Apple Watch, our entire AirPods lineup including the new AirPods Max, as well as the new HomePod mini. This broad strength across the category led to new revenue records for each of its three subgroups. And we're very excited about the road ahead for these products. Look no further than the great potential of Fitness+, which pairs with Apple Watch to deliver real-time on screen fitness data alongside world-class workouts by the world's best trainers. There are new sessions added each week and customers are loving the flexibility, challenge, and fun of these classes, as well as how the pairing with Apple Watch pushes you to achieve your fitness goals.

Apple recently released services like Apple Fitness+ and products like AirPods Max that are new drivers to this business segment.

- TechnW3
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