Skip to main content

Despite data showing slowing sales of smartwatches, sales of Apple's (AAPL) - Get Apple Inc. Report Apple Watch hit record highs during the first week of holiday shopping, CEO Tim Cook told Reuters

Cook said the wearable's sell-through has gained sharply and that the current quarter is poised to be the best ever for the Apple Watch.

"Our data shows that Apple Watch is doing great and looks to be one of the most popular holiday gifts this year," Cook said, according to Reuters.  

However, Cook didn't provide detailed sales figures on the product. Apple doesn't break down sales of the Apple Watch in its earnings; instead it falls under the "Other Products" segment which includes Beats headphones, iPods and the Apple TV.

In its most recent quarter, sales in the Other Products category fell 22% year-over-year to $2.37 billion.

The comments follow a Monday report from market research firm IDC that said Apple sold 1.1 million Apple Watches in the third quarter of 2016, representing a 71% decrease year-over-year. This big decline was likely impacted by Apple's decision to launch its second-generation watches in mid-September, near the end of the quarter, according to IDC.

Additional IDC data suggests downbeat smartwatch sales in general. The firm estimates that industry shipments fell 52% in the third quarter to about 2.7 million. 

Scroll to Continue

TheStreet Recommends

Apple is a holding in Jim Cramer'sAction Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells AAPL? Learn more now.

The overall wearables market may be in better shape due to rising sales of standalone fitness trackers such as Fitbit's (FIT) - Get Fitbit, Inc. Class A Report bands, however. IDC said total wearables shipments increased 26% in the second quarter to 22.5 million.

"It's still early days, but we're already seeing a notable shift in the market," said IDC senior research analyst Jitesh Ubrani in a statement. "Where smartwatches were once expected to take the lead, basic wearables now reign supreme."

Drexel Hamilton Analyst Brian White said in a recent note that Apple appears to be "one of the best positioned tech companies" to benefit from spending trends during the holiday season due to a slate of new products, including the Apple Watch Series 2, iPhone 7 and updated MacBook Pro models. 

Tech products were, as usual, popular during the Thanksgiving Weekend and Cyber Monday shopping days.

The Consumer Technology Association estimated that total tech spending over the holiday season will increase by 3.1% vs. a 1.5% increase in the prior year, making it a "record year for tech."

CTA also indicated that 47% of the U.S. adult population planned to purchase tech or tech accessories during the Black Friday Week. 

Shares of Apple were up 0.21% to $109.40 in early morning trading on Tuesday.