Apple sold between two and 2.5 million Apple Watches this quarter and this has brought in approximately $1 billion in revenue to the company.
That's an estimate made by analyst firm Juniper Research, which says based on this figure, the Apple Watch is the most successful smartwatch launch to date, with no other launches coming close in a comparable time period.
Apple this week announced financial results for its fiscal 2015 third quarter ended 27 June, 2015. The company posted quarterly revenue of $49.6 billion and quarterly net profit of $10.7 billion, or $1.85 per diluted share.
The third-quarter earnings report was its first since launching sales of the Apple Watch this past April.
However, the company divulged very little about Apple Watch sales. It did not specify unit sales or revenue the way it does for other categories, such as the iPhone or iPad.
Juniper Research says while it didn't expect Apple CEO Tim Cook to bare all with the Apple Watch sales, there were some indications in the quarterly earnings call that shed some light on the wearable's performance.
Apple Watch revenue was included in a category called "other products," which generated $2.6 billion of revenue during the quarter. A year ago, that category - which also includes iPods, Beats headphones and speakers, Apple TV streaming media devices, and accessories - generated $1.7 billion in sales.
Apple executives said Watch sales accounted for "well over 100%" of the growth of the category, which has been shrinking from zero to 10% on a year-over-year basis over the prior four quarters.
Luca Maestri, Apple CFO, clarified this by stating: "The contribution from Apple Watch accounted for well over 100% of the growth of the category", thanks to declining sales of the iPod and accessories.
Depending on the average selling price of Apple Watch the year-on-year revenue increase indicates between 1.5 and 2.5 million units, says Juniper Research.
Maestri also remarked that the Watch has sold more than the first iPhone or the iPad in a comparable period - that is 87 days. The first iPad was the better selling of these two, and sold two million in 60 days.
Given the above, Juniper Research says it assumes there have been more than two million Watch sales so far. How much higher depends on how much "other products" revenue shifted from other accessories to the Watch.
It points out that the segment has been on a year-on-year decline of approximately $200 million until the Apple Watch launch.
"If we assume a similar decrease this quarter, Watch revenue was approximately $1 billion," says Juniper devices analyst James Moar. "This figure only results in more than 2.5 million units if the Apple Watch Sport has a 75% or greater share of the product line's revenue."
However, despite buyers being satisfied with the device, Juniper Research says the product is running out of steam. "We would also expect a decline in sales following launch, especially as the first half draws to a close.
"This means we are unlikely to see more than seven million Apple Watches sold by the end of 2015, even with a boost to sales over the Christmas period."
According to Moar, Apple's large advertising machine is generating awareness of smartwatches to a broad audience, as well as a loyal customer base who demand native Apple devices before considering those from a third party.
This brings in buyers new to the smartwatch category and iOS loyalists, both of which have previously been under-served by the category, he adds.
Commenting on the overall smartwatch market, Moar says despite the launch of the Apple Watch, the smartwatch market has not had its iPhone moment.
"The devices are still largely technology looking for a use case, and this stereotype limits the appeal of devices that are moving in a more fashionable direction. Apple has produced the biggest seller so far by a long way, and given the industry a very competent poster child, but it is still looking for a reason to be relevant to most consumers."
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