Apple reported $3.74 billion in revenue from its "other products" division, which includes sales of Apple Watches, iPods, home products and more, beating Wall Street estimates for its third quarter. The company's stock rose about 2 percent after hours on a strong quarter overall.
That's 37 percent more that the $2.74 billion in revenue Apple reported in the year-ago quarter, but about 5.3 percent less than last quarter. Apple's third quarter ended June 30.
Wall Street analysts were predicting revenue of $3.67 billion, according to StreetAccount, down from the $3.95 billion Apple reported last quarter. The division's revenue tumbled about 28 percent between its first and second quarters. This time last year, revenue slid 4.8 percent between quarters.
The "other products" category includes wearables, like AirPods and the Apple Watch, accessories and smart speaker HomePod, which launched in February. On a call with investors Apple CEO Tim Cook said the wearables division of "other products" experienced "outstanding" 60 percent growth, year-over-year.
"Apple watch delivered record June quarter performance with growth in the mid 40 percent range, and we are thrilled to see so many customers enjoying AirPods. It reminds me of the early days of iPod, when I started noticing white ear buds everywhere I went," Cook said on the call.
He also noted some HomePod updates throughout the quarter, but glossed over any specific growth numbers.
After a troubled release, HomePod sales initially surged before slowing to place Apple's smart speaker squarely behind competitors Amazon and Google, Bloomberg reported.
The Apple Watch, on the other hand, has continued to hold the lead in the the wearables market. In June, market research group IDC reported Apple was still the single biggest vendor of wearable devices with a 16.1 percent market share that grew 13.5 percent year-over-year. At WWDC in June, Apple announced a suite of new features coming to the Apple Watch, including new exercise functions, podcast support and predictive features for Siri.