Wiser! #56 (Premium): Apple dominates the Wearables market with the Number 1 Watch and Airpods. But if Apple are to ring the $4 trillion bell, they are going to need new products. Next to come is a Mixed Reality Headset and then a pair of AR glasses.
This article is written exclusively for Premium Subscribers.Subscribe to Premium
Wearables (and Services) are the drivers of Apple's top-line growth
When Apple recently, briefly, hit a market cap of $3 trillion, it made them the size of the UK, the 5th largest economy in the world. And whereas the UK is growing at around 1-2% at best (given the economic impact of the pandemic and the own goal that is Brexit), Apple grew 36% last year. By comparison, the S&P 500 (only) achieved growth of 26% across 2021.
Whilst it is the iPhone (with its billion users) that makes up almost half of Apple's numbers, it is Apple's Services and Wearables businesses that are expected to drive top-line growth going forward and ring the $4 trillion bell. Increasingly, Apple's strategy is to (a) get you to pay regularly every month in ever-increasing amounts (instead of the one-off transactions from buying a new iPhone, iPad or Mac computer) and (b) grab more of your time and attention.