Apple's Free iPhone is now a Cash Cow

Apple's core business has shifted to being driven by computer, iPhone sales

In 2001, Apple was a shell of the vibrant company it had been in the 1980s. Battered by years of losses to Microsoft, the company had little options. It had virtually no market share in the personal computer industry, and little brand image. Then the company invented a seemingly insignificant little device that would go on to change everything -- the iPod.

The iPod not only turned around Apple's finances, it redefined the entire company. Apple went from a tired elitist on the brink of financial collapse to a hip trend-setter delivering music to the masses and with plenty of cash to burn. In Q1 2006, just 5 years after the launch of the iPod, the iconic device accounted for 55.6 percent of Apple's sales.

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