Apple is reportedly going to release a 5.5-inch iPhone this fall.
When it does that, it will probably cause even more pain for the iPad business, which is in a surprising decline right now. After all, why do you need a big iPhone and an iPad, which is basically just a bigger iPhone?
So, this is bad news for Apple, right? Its iPad business will tank and it will be hosed, right?
Um, no. This tweet explains why not:
A 5.5-inch iOS device: $US750. A 7.9-inch iOS device: $US399. Which would you want to sell?
— Sammy the Walrus IV (@SammyWalrusIV) July 24, 2014
Some explanation: The 5.5-inch iPhone 6 is expected to go for $US750 unsubsidized. The iPad Mini goes for $US399. Selling the more expensive iPhone is better for Apple.