Women are buying Apple Watch and other wearable gadgets at record levels, fueled in part by a surge in the popularity of the Apple Watch, a wearable device powered by artificial intelligence.
Analysts predict the Apple watch will top $1 trillion in sales by 2020, surpassing the $1.6 trillion spent by other wearable electronics.
The popularity of wearable devices is driving an uptick in the demand for Apple Watch.
Apple Watch sales have soared since its introduction in March.
Last month, the company reported sales of 3.8 million watches and 1.7 million wristbands.
“We believe the wearable market is going to be incredibly important to the future of Apple,” said Brian T. McClelland, an analyst at Oppenheimer & Baker &, in a note to clients.
“The Apple Watch is the only device that can deliver the performance and longevity that Apple has been seeking.
And the device is a big part of the reason why.”
The Apple watch comes in multiple styles and is designed to fit the wrist, according to the company.
Apple is targeting the female audience with the Apple Watches, said Jeff Williams, a senior analyst with Forrester Research.
Women are the biggest consumers of wearable technology, he said.
In the second quarter, Apple reported a 22% drop in revenue from the prior quarter.
The company said its net income decreased by $2.2 billion, or 2%, to $5.6 billion, compared with the same period a year ago.
Investors are also worried about a decline in sales of its flagship products, such as the Apple MacBook Air, the MacBook Pro and the Apple TV.
Last week, Apple said it would stop selling the Apple iPhone and iPad because of its failure to meet consumer demand.
But analysts said the timing of Apple’s earnings report is a sign of confidence.
Apple had already announced that it would be laying off 1,000 workers and selling its entire workforce in the first quarter of 2020.
Some analysts expect the company to continue selling iPhones and iPads in the months ahead.
The Apple Watch will be available for pre-order starting Sept. 24 and will be priced at $349, according the Apple Store website.
At the same time, some analysts said they were worried about the future.
“I think Apple Watch could be the biggest disappointment of all,” said Michael Osterholm, an economist at Pimco in New York.
“It is a device that is going out of style.”
“The biggest risk is Apple Watch,” said Marc Andreessen, an investor at Andreessen Horowitz.
“This device has been a great success for Apple, but there is a lot of room for it to go wrong.”
A spokeswoman for Apple declined to comment on the company’s earnings or its plans for the Apple wearable.
Sales of the iPhone are expected to increase next year as Apple sells more iPhones.
According to the New York Stock Exchange, Apple’s market capitalization rose $11 billion to $72.5 billion.
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