Quarterly iPad Revenue Has a 68% Correlation With Apple's Stock Price

Bloomberg Businessweek has posted a report noting that quarterly iPad revenue has a 68% correlation with Apple’s stock price. The iPad accounted for $31 billion of Apple’s revenue last year which is about 20% of total sales.

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). If we consider unit sales rather than revenue, the iPhone becomes a better predictor of Apple’s share price than the iPad, but the difference is not enormous: Unit sales of the iPhone are 77 percent correlated with the stock; iPad unit sales are 68 percent correlated.

Apple is predicted to launch a new iPad 5 with an iPad mini style design featuring narrower side bezels and a new Retina Display iPad mini 2 at event on October 22nd. There have been some concerns that perhaps there will not be enough inventory of the iPad mini 2 at launch.

Apple may also be launching OS X Mavericks around the same time. It recently sent an email to developers asking them to submit their apps for the new desktop operating system.