AirPods to Reach Quarterly Sales of $4B, Overtaking ‘Peak iPod’

AirPods to Reach Quarterly Sales of $4B, Overtaking ‘Peak iPod’

Apple’s AirPods are having a great holiday quarter, selling out everywhere, and a new research note expects the wireless earpods to soon beat out the $4 billion quarterly revenue that Apple saw at “peak iPad” in 2007.

9to5Mac reports Asymco published a research note on Thursday, which takes a look at Apple’s potential quarterly revenue from Apple’s “Wearables, Home, and Other” category.

Last year saw the Apple Watch pass $4B in quarterly revenue in Q4 2018, and now it looks as if AirPods may score a similar win.

As we all know, it’s tough to tell exactly what Apple’s revenue is on individual products in the Wearables, Home, and Other category, as Apple doesn’t break out numbers for specific products. But Asymco says it estimated Apple Watch income and subtracted it from the total for the category, then took an educated guess for the AirPods portion of the remaining income.

“Looking forward to the next quarter, I am expecting a 51% increase y/y for Wearables and 24% growth in Watch. This results in a Watch revenues about $5.2 billion and non-Watch $5.7 billion. Now if we assume $1.7 billion for non-Watch-non-AirPods (i.e. Apple TV, HomePod, Beats, iPod, other) then this quarter AirPods will have overtaken peak iPod,” said Horace Dediu of Asymco.

Last month, Bloomberg reported Apple was doubling its AirPods Pro production. However much Apple increased production, it apparently hasn’t been enough, as the wireless earbuds are sold out everywhere we’ve looked.

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