It has been two years since Apple introduced the Apple Watch to its line of products and the smartwatch business has proved to be a significant business that might soon be valued at $6 billion.
The Apple Watch business is quite small when compared to the company’s main revenue earners including the iPhone, iPad and Mac businesses. Despite its small size, it is still considered significant for the software and tech giant and it continues to attract more optimism. Apple launched the first generation Apple Watch in 2015 and revenue from the smartwatch sales has been growing significantly each year.
Apple Watch is not just an iPhone accessory
Apple continues to invest significantly in improve the Apple Watch business and for good reason. The business has reportedly been gaining about $4 billion every year since the launch, thus showing a lot of potential. These are good margins and the firm is willing bet that things will only get better over the next few years. The tech giant has so far sold 12.1 million units of the wearable, which in terms of earnings is about $5.7 billion. It is only a matter of time before the smartwatch business hits $6 billion in revenue. However, there are analysts who believe that it is already worth more than that.
“Apple already has a $10 billion Apple Watch business on its hands,” stated Apple analyst Neil Cybart.
Regardless of the value estimates of the Apple Watch business, the analysts have bearish sentiments about the growth of the business and there are numerous factors driving those sentiments. Apple made various announcements during its 2017 Word Wide Developer Conference (WWDC), hinting that it might have figured out how to ensure more market growth for the Apple Watch.
The company managed to revive sales this year after a tough year for the business in 2016. New Features coming on board the new WatchOS 3 software are expected to play a significant role in boosting sales for the Apple Watch business. The firm expects the business to continue growing and considerably contributing to its topline.