Apple announced that its wearables, home, and accessories business grew 30% year over year to a new first-quarter record of $13 billion during the Q1 2021 earnings call today. The company also announced its record quarter with $111.4 billion revenue.
According to Apple CEO Tim Cook, there were new revenue records for all three subgroups of the Wearables, Home, and Accessories category. The 30 percent growth the category saw during the quarter can be accredited to rising demand for the Apple Watch, HomePod mini, and all of the AirPods models, including the AirPods Max.
Apple’s wearable business sets new record in Q1 2021
Apple’s Chief Financial Officer Luca Maestri says that this quarter’s performance has helped solidify this segment of the company’s business as a Fortune 120 company all on its own. Maestri also revealed that despite Apple Watch being available since 2015, over 75% of consumers purchasing it 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 on the call, saying that each of the segments set new revenue records of the holiday quarter. Cook also highlighted services like Apple Fitness+ as a driver for increasing wearables demand.
“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.”
However, going forward Apple expects demand for wearables to fall short compared to the first quarter since most of this quarter’s growth was driven by holiday sales.