“Investors, however, should not ignore the iPad. The device is a critical piece of Apple’s business, and the company’s fortunes hinge largely on the success of the latest models,” Glassman writes. “As a business unit, the iPad is huge. The device accounted for $31 billion in revenue in Apple’s most recent fiscal year. That’s more than the annual sales of 84 percent of members of the Standard & Poor’s 500-stock index.”
Glassman writes, “Here’s where investors should start paying attention. By at least one measure, as the iPad goes, so goes Apple stock. Quarterly iPad revenue has a 68 percent correlation with Apple’s share price. That’s higher than the stock’s correlations to iPhone revenue (62 percent) or Mac revenue (40 percent).”
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