During its Q2 fiscal earnings call today, Apple CEO Tim Cook confirmed that demand for the company’s cord-free AirPods headphones is significantly exceeding supply. Cook also said that revenue from sales of Apple Watch along with AirPods and Beats products is now the size of a Fortune 500 company, hinting that those products have driven growth of its “Other Products” category this quarter.
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Apple groups Apple Watch, AirPods and Beats into its “Other Products” category rather than breaking out unit sale and revenue for each during its earnings reports, but Cook’s comments hint that Apple Watch and AirPods, along with a couple new Beats products, have largely driven growth of the category that Apple reported today. The category also includes sales of Apple TV, iPod and Apple-branded and third-party accessories, and this quarter it was up 31% year over year.
With Cook’s comments regarding its wearable sales now being a Fortune 500 company, that would indicate those products together are now a $5 billion+ business. Apple didn’t, however, offer any specifics for Apple Watch or any of the other products individually. During the earnings call Cook also referenced a recent study that found AirPods are getting around 98% customer satisfaction rates despite the supply shortages.
Following a few delays, AirPods officially launched back in December but have been in and out of stock for most customers attempting to purchase a pair since launch.
AirPods were followed by the new BeatsX headphones in February, the first earbuds after AirPods to use Apple’s W1 chip that greatly improves Bluetooth reliability and pairing following the Beats. And Apple most recently refreshed the Apple Watch with new bands for Spring and started offering its Nike Sport bands separately.
Catch up with more numbers shared by Cook and other Apple execs in our live blog from today’s earnings call.