Apple's Vision Pro Will Take Far Longer Than iPad, Watch to Spur Big Revenue

Apple’s Vision Pro headset won’t make a material impact on Apple’s business for a number of a years, trailing the time it took the iPod, iPhone and iPad to become hits. Also: Apple plans a slow rollout for the device with appointments and head scans, while new software betas are released. 

The Starters

Apple Inc.’s iPhone and iPad became significant revenue contributors nearly instantly, while the iPod took a bit longer and the Apple Watch is still adding sales. But the latest major new device category, the Vision Pro mixed-reality headset, will take much longer to reach the same feat — if it ever does.

In 2004, three years after its launch, Apple broke the iPod out into its own sales category. That year, the MP3 player generated about 16% of the company’s sales. By the time the iPhone was announced, the iPod was the source of almost 40% of Apple’s annual revenue, bringing in about $8 billion annually.

While the original iPhone was met with initial concerns surrounding its price point and AT&T exclusivity, it sold 1 million units in less than three months and topped 10 million units during its first full year on sale. By 2009, it generated about a third of Apple’s total revenue. 

The iPad was an instant blockbuster, making Apple nearly $20 billion in revenue — or about 18% of total sales — by 2011, the year after its debut. In its first year, Apple sold about 15 million tablets, nearly tripling the iPhone’s initial performance. 

The Apple Watch started off slower than those products but has since become an important part of the business. Apple has never broken out Apple Watch sales into its own category; the device is tucked it into a Wearables, Home and Accessories segment with AirPods, Beats headphones, the HomePod and Apple TV.

That group brings in about $40 billion annually now, or about the same amount as the Mac. The Apple Vision Pro, which will likely be placed into the same financial reporting segment, will have an even longer ramp up...

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