Goodbye iPod, hello iPhone

Full Story at BrainstormTech.blogs.fortune.cnn.com

Apple passed an important milestone last quarter that nobody on Wall Street seems to have noticed: the iPod, once Apple’s (AAPL) No. 1 source of revenue, fell into third place after the Mac (No. 1) and the iPhone (No. 2).

Think of Apple’s business model — as Steve Jobs often does — as a three-legged stool: Mac, iPod, iPhone. As recently as 2006, the iPod leg accounted for 55.5% of Apple’s revenue. By last quarter, its share had shrunk to less than 18%.

But this is a good thing, argues Bullish Cross‘ Andy Zaky, a day trader and occasional blogger whose estimates of Apple’s earnings regularly beat — by a long shot — the estimates published by professional analysts

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