Apple's Core: iPad Rises as iPhone 5 Goes Downmarket

by Mark J. Miller




The iPad is only about three years old but its success is so massive that if it were its ownbusiness, it would be No. 98 on the Fortune 500, higher than McDonald’s, which pulled in $27 billion last year, and Nike, which grabbed $20.9 billion).
The iPad made up 60% of the tablet market last year and snagged $32 billion, Fortune reports. Bernstein research analyst Toni Sacconaghi claims that iPad would be the 11th largest tech company in the U.S. if it were its own company separate from Apple.
The iPhone 5 is also ringing up sales, even though Consumer Reports doesn’t give it stellar scoresin its new issue. In fact, CR calls iPhone 5 “the worst of the top smartphones.” It's in the bottom of the top three for both AT&T and Sprint and isn’t even listed in the top three for Verizon.
Apple needs iPhone to keep growing, but more bad reviews could hurt the brand over the long-term if similar problems pop up in the next version and Samsung’s Galaxy S III continues to be such a strong product. Discounting is also hurting the image of the iPhone sub-brand.
Walmart's discounting of iPhone 5 was blamed for $65,000 in holiday losses for Best Buy, which promised to match any competitor's pricing for the phone.
And starting Friday, Walmart's Straight Talk wireless program will launch a monthly$45 iPhone plan online and in stores, with no contract that allows consumers to have unlimited phone, text, and data or a $60 monthly plan that lets the phone be used for international calls to certain countries.
Price-matching Best Buy and Target, get ready.

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