Move over iPhone, its Apple Watch's time to grow
The quarterly results of Apple that were announced on Tuesday gave a clear indication that the iPhone will not be the only warhorse driving Apple sales during the coming years.
Apple results point out to a record quarter with sales of the company's flagship device the iPhone earning a revenue of $75.9 billion and record quarterly net income of $18.4 billion.
But the forecast for the next quarter is pointing out to a drop in sales.
Apple is forecasting that it could only be able to achieve a revenue of between $50 billion and $53 billion during the 2016 fiscal second quarter, which will be its first revenue drop in 13 years.
Although Apple feels that demand in India could well compensate for the slowdown in China and thereby power up dwindling sales, the indications are clear, unless Apple continues to innovate, fans, after all will not be hell bent on replacing their older iPhones for their new ones.
With 4G penetrating at a faster pace across various Indian cities, Apple is hoping that it can sell much more than the current average of 1.6 million units annual sales.
The current result should not come as any surprise to those who are familiar with consumer trends.
The second and third quarters have always been a low period for Apple, especially as fans await the September launch of a new flagship device.
The iPhone 6S was in no way a great innovative product and did not offer any significant advantage over an iPhone 6, thereby in no way inciting its fans to go for any immediate upgrades.
The iPhone 7 which is expected to be released later this year is meanwhile expected to come with significant changes including a physical redesign, a thinner product, a USB-C port, a possible edge to edge screen and wireless charging.
Amidst all this Apple is hoping that it could be the Apple Watch that could be driving up sales in the future.
Although Apple did not provide an exact number for how much the Watch did earn it indicated that the Other category to which the Watch belonged saw a 40 per cent increase from $2.7 billion during the first quarter of 2015 to $4.35 billion during the 1Q 2016.
Meanwhile it is expected that Apple Watch could power at least 5 per cent of all online payments in the years to come and thereby gradually increasing to 10 per cent. So clearly as Apple innovates with the iPhone, the peripheral and 'other' products might well move on to gain mainstream attention.
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