Apple’s Wearables, Home, and Accessories category – which includes the Apple Watch, AirPods, Beats headphones and Homepod – set a new all-time revenue record in the fiscal first quarter or 2020. Wearables revenue hit $10 billion, up from $7.3 billion in the year-ago quarter.
Revenue from the Wearables, Home, and Accessories category surpassed Mac revenue for the first time. Mac revenue hit $7.2 billion in Q1 2020. Apple CEO Tim Cook said on Tuesday that Apple’s wearables business is now the size of a Fortune 150 company.
During yesterday’s Apple earnings conference call with the press, Cook noted that Apple couldn’t make enough Apple Watch Series 3 devices to meet demand during the quarter, and supplies continue to be low. Cook said Apple is “working on both of those very hard.”
Both the Apple Watch and AirPods were popular holiday gifts, driving growth even though supplies were limited. More than 75% of new customers during the holiday quarter were new Apple Watch customers.