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Together with AirPods, Apple TV, HomePods and all Apple-branded and third-party accessories, the Apple Watch falls into Apple’s “Wearables, Home and Accessories” segment (formerly known as “Other Products”), which has been growing rapidly over the past few years. Fueled by the success of the Apple Watch and AirPods in particular, sales from the segment have more than quadrupled over the past decade, reaching $39.8 billion in the fiscal year ended September 30, 2023.
While the iPhone remains the largest driver of Apple’s sales, the company has successfully broadened its revenue base over the past few years. With iPhone sales peaking at 66 percent percent of the company’s total revenue in 2015, Apple had become dangerously dependent on smartphone sales, especially considering the increasing maturity and slowing growth of the industry. Thanks to the Apple Watch, AirPods and its ever-growing services segment, Apple was able to reduce its reliance on iPhone sales quite significantly to 52 percent of total revenue in each of the last three fiscal years.
The “Wearables, Home and Accessories” segment has accounted for roughly 10.5 percent of total sales in the past three years, doubling its importance since 2014. Back then, one year before the Apple Watch was launched, Apple's supporting cast, labeled "other products" then, contributed 4.6 percent to the company's total revenue.
This chart shows Apple's revenue from "Wearables, Home and Accessories".
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