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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: $750. A 7.9-inch iOS device: $399. 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 $750 unsubsidized. The iPad Mini goes for $399. Selling the more expensive iPhone is better for Apple.