On February 2018, Apple Inc. a multinational technology company headquartered in California, U.S., sold more watches than ever before. Apple Inc. posted 50% revenue in terms of unit shipments and revenue during the fourth quarter of 2017 and strong double-digit growth in every geographic segment. Apple smart watches started off as a niche and premium products but it is apparently becoming a mainstream device making Apple Inc. the leading company in the smart watches industry. Established in 1977, the company designs, manufactures, and markets mobile communication & media devices and personal computers, and sells a variety of related software, services, accessories, networking solutions and third-party digital content and applications. Apple Inc. operates mainly through five product segments: iPhone, iPad, MAC, services, and other products, registered the revenue of US$ 229,234 Million in 2017. IPhone segment dominated the annual revenue with the share of 61.6% in 2017. Apple Inc. have global presence, however Americas, Europe, and Greater China contributes over 85% of Apple Inc. total revenue.
Apple smart watches sale will continue to grow in near future as the brand is slowly penetrating into different application sectors currently catered by other wearable devices such as fitness & activity tracker, the most viable revenue stream in wearable devices market. Apple Inc. disrupted the smart watch industry in terms of value and volume with the launch of Apple smart watch. However, Apple Inc. will have to diversify their revenue stream in wearable devices as it is a very dynamic space. Wearable devices market is characterized by high threat of new entrants owing to increasing ease of securing funds, emerging new technologies, ease of venturing through counterfeit products, and availability of competitive products at lower price in China projected to hamper the revenue growth and profit margins of established players such as Apple Inc., Samsung, and others.