Why iPad is more important than the iPhone for Apple

“When Apple (AAPL) unveils its latest iPad and iPad mini later this month, the Internet will not explode, as it did when the company launched new iPhones last month,” Mark Glassman writes for Businessweek. “That’s fair enough. The iPhone is Apple’s benchmark product. It accounts for half the company’s revenue. It commands more news coverage than any other mobile device. It’s Hannah’s phone on Girls.”

“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).”

Read more in the full article here.

18 Comments

  1. Well well, they did not measure this correctly as both products run side by side and both are important. Just now that they failed to raise screen resolution and display size the ipad has become apples last straw in mobile devices

    1. If by “last straw” you mean record-setting sales of the iPhone 5S, I’d grasp at that straw any time.

      What idiot came up with the idea that iPhone sales will crash if Apple doesn’t make iPhones big and clumsy, like Samsung?

      You sound like a Samsung troll.

    1. I don’t really complain about screen size much, but I think Apple will produce a larger screen iPhone before MDM allows me to increase the font size to something comfortable. 🙂

      Go ahead, delete this post.

      1. I don’t usually complain about much, but I’m in agreement here. The non-changeable font size on the mobile app is simply too small for my astigmatism-afflicted, ever-aging eyes to comfortably view.

          1. I wish that Safari on iPad & iPhone had the same Adblock available as on my Macs. Seeing that annoying HP banner flashing at the bottom of the MDN screen is not only annoying but pointlessly annoying to this mostly Apple crowd. It speaks of ad dollar desperation and a disrespect of loyal readers. At least advertise stuff we might actually be interested in!

  2. I would like to see a larger iPhone for web browsing and stuff and have a little more choice. The only problem, I’m not sure what size. The 5″ and 6″ look way too big, but if Apple is only going to do 4.8 or so, thats not much of a difference from 4″. Not sure, its something where multiple screens need tested I guess to have an even choice between a small screen and larger screen, but not too large.

  3. As a Canadian, one thing that I find striking in all the discussion that goes on about Apple and Samsung is the way in which each company is very much representative of the essential nature of their respective countries. On the one hand, Apple is the quintessential honest broker which embodies the qualities that American’s hold most dear: hard work, innovation, openness, a willingness to take risks, and a desire to achieve success in the markets through offering products that people want. At times, however, Apple seems almost naive in its basic willingness to trust its partners and its apparent ignorance of the extent to which other companies will go to steal its intellectual property and to discredit it rather than complete on a level playing field. It strikes me as a company that it is slow to anger but also one that wields very powerful weapons when aroused. Hammers are not generally perceived as tools of diplomacy.

    On the other hand, we have Samsung, a South Korean company, brilliant in its own way and for the most part, wanting to be of service to its customers. But in its heart of hearts, it is part of a country that is locked in a death struggle with a powerful and ruthless adversary in the form of North Korea that would annihilate South Korea without a second thought if it thought it could get away with it. In this same vein, North Korea is willing to bluff with its careless use of its military might, including its nuclear weapons when it feels threatened. More to the point, when its depraved and psychopathic “dear” leader feels the urge, we see the worst behaviour from North Korea.

    The effect on South Korea cannot be overstated. Simply put, I think that what motivates Samsung is what all South Koreans fear which is for its own survival as a result of decades of this soul-destroying, withering struggle that is still unresolved. And this fear that seems to permeate the national conscience is, I believe, largely responsible for Samsung’s reprehensible behaviour to seek alliances that would appear to compromise its innate desire to do the honourable thing, to compete, albeit fiercely but still fairly.

    In summary, Apple is a proud, successful company that Samsung wishes it could be and given the shroud of fear and anguish that surrounds it, Samsung has decided to compromise and to give into the fears that strike at the hearts of all South Koreans rather than try to build towards a stronger future through alliances with companies such as Apple.

  4. I think that the 5S will evolve into a bigger screen while the 5C will stay as is, which would create the desire distance between them. Mind you you can bet that that will leave complaints about wanting a smaller but metal phone so who knows.

    1. Personally, I believe the iPhone 6 will come in two models; one with the current screen size, but overall size a little smaller, and one with a 4.7″ display while keeping the overall size of the device “about” the same.

      Both can be accomplished by just shrinking the bezels.

    1. Sorry for being a stickler for accuracy, but technically everyone does, including you. Unless you have one amazing capacity for infinite constipation.

      Could we make points on this forum without resorting to juvenile illogical potty-mouth posts? Please?

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