The technology, called near-field communication, involves a microchip that can send and receive data across very short distances, about four inches. Instead of swiping a credit card, you hold your phone near a reader and let the data zip between the two devices.

In the 2010 holiday quarter, Apple reported $26.7 billion in revenue, up 70 percent from a year before. That means it's nearly as big as IBM, which did $29 billion in the same quarter.

The iPod wasn't the first MP3 player. Nor were the iPhone and iPad the first in their categories. The real reason for the success of these devices - the true unsung hero at Apple - is the iTunes software and iTunes Store. Because Apple provided them, it wasn't just selling hardware.

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