John Gruber on the Apple Watch and iPhone.
“The nut of every “Apple Watch is a dud” story is the fact that its clearly not an iPhone-size business. But that can’t be the only measure of success. The iPhone is the biggest and most successful consumer product in the history of the world. Nothing compares to the smartphone market, and it’s possible nothing else will in our lifetimes. You and I may never again see a product as profitable as the iPhone — not just from Apple, but from any company in any industry. Or maybe we will. It’s a complete unknown.
But if Apple gets it into its head that they should only work on iPhone-sized opportunities, it would paralyze the company. In baseball terms, it’s fine for Apple to hit a bunch of singles while waiting for their next home run. According to Apple, they had more watch sales by revenue in 2015 than any company other than Rolex, and Apple’s “Other” category, which is where Watch sales are accounted for, had a record-breaking holiday quarter three months ago, suggesting strongly that Watch sales were up over the year-ago holiday quarter.
These two facts are both true: Apple Watch sales are a rounding error compared to the iPhone, and Apple Watch is a smash hit compared to traditional watches and other wearable devices.”