I Was Wrong About Apple, Inc.'s iPad

Primary revenue driver changes shown in circles. Data as of January 2013.

And I looked at how iPad unit sales had taken off faster than any product before it.

Source: SEC filings. Data as of January 2013.

It didn't seem that far-fetched considering the trajectories at the time, although with the benefit of hindsight it was perhaps too early to call since the iPad had only been available for three years. In the nearly three years since that prediction, things have changed. A lot.

Back to the future

Apple has since stopped reporting iPod results, as the music player's financial significant has expectedly withered even further. But here's how the Mac, iPhone, and iPad stack up in relative importance, as measured as a percentage of trailing 12-month sales.

Source: SEC filings. Fiscal quarters shown.

As you can see, the iPhone has only gotten stronger and more dominant as the primary revenue driver, currently comprising two-thirds of TTM sales. The Mac and the iPad are at 11% and 10%, respectively. While we're at it, here's an updated chart of unit volumes following launch.

Source: SEC filings.

After the iPad sprinted out of the gate initially, unit sales have been trending lower for the past couple of years, while the iPhone continues to march skyward.

At this point, it doesn't seem that the iPad will ever have a chance at being the primary revenue driver. Not that the iPad really has to, but I just thought it would . All of Apple's product lines are highly complementary and incrementally feed into its broader ecosystem, and while the iPad has seen better days, it still has opportunities ahead. The iPad's not going anywhere.

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The article I Was Wrong About Apple, Inc.'s iPad originally appeared on

Evan Niu, CFA owns shares of Apple. The Motley Fool owns shares of and recommends Apple. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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