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4 key takeaways about the iPad and iPhone from Apple’s financial results

by Doug Drinkwater

November 5 2013

The iPad continues to dominate in both the education and enterprise markets
The iPad continues to dominate in both the education and enterprise markets

Apple reported massive profits and rising device shipments in releasing its fourth quarter financial results last week, but what did the announcement tell us about the firm’s iPad and iPhone family? TabTimes investigates.

iPad dominates education market

TabTimes has been tracking tablet deployments in education for over two years now and we’ve seen what most people would expect – tons of iPads and a handful of Windows 8 slates.

Nonetheless, considering the increasing number of Windows 8 tablets, Google Chromebooks and new players like Amplify, it is remarkable just how dominant Apple is.

The firm announced yesterday that it sold over $1 billion worth of products and claimed that 94% of education tablets are iPads. Considering that Apple saw iPad activations of 90% in the same quarter, that would mean that education demand is even stronger than that from consumers.

"We see Chromebooks in some places," said Apple CEO Tim Cook. "But the vast majority of people are buying PC/Mac or an iPad. "It's sort of unheard of," said Cook. "I've never seen a market share that high before.”

The next phase of enterprise mobility: apps

Apple’s latest financial results showed that Apple's dominance in enterprise isn't just in hardware, but in software too.

During the quarterly earnings call, chief financial officer Peter Oppenheimer talked up custom built enterprise apps and said that nearly 35,000 companies worldwide are building apps for their iPhone and iPad users.

This follows Good Technology’s most recent Mobility Index Report, which found that iOS accounts for 95% of enterprise mobile app activations.

As an aside, it was interesting to note that the call didn't just focus on the 9.7-inch iPad – which has generally been the success story in enterprise, but on the iPhone and iPad mini too.

(Worth reading: Analyst reckons iPad mini 2 will outsell iPad 5 this holiday season & The surprising iPad rival in education that isn't a tablet, laptop or desktop)

Even Apple expects smaller tablets to be hot this holiday season

Prior to Apple’s big iPad announcement last week, one analyst estimated that the iPad mini 2 would outsell the iPad Air by a factor of 2:1, the latest sign that small tablets are hot right now.

As it turns out, Apple CEO Tim Cook appears to agree as he yesterday inferred that the Retina Display iPad mini will be the big winner this holiday season. In fact, he isn’t even overly confident that the company will be able to meet the demand.

"It's not clear that everyone who wants one will be able to find one," said Cook.

iPhone 5C is definitely not low-end

Google’s Android is beating iPhone and iPad in their respective smartphone and tablet markets, and there was at one stage the suggestion that Apple’s iPhone 5C – introduced last month along with the iPhone 5S – would see Apple dive into the budget end of the market.

As it is, iPhone 5C prices haven’t been wildly cheaper than the iPhone 5S and Apple has moved to dismiss the notion that it was intended to be an entry-level product.

"If you look at what we’ve done with our iPhone line, we’re selling the iPhone 4s as our entry offer,” said Cook during the earnings call.

“We’re selling the iPhone 5c as sort of a mid-tier offer. I realize that some people were reading rumours that the entry phone would be the 5C, but that was never our intent, obviously.”

(For more iPad news, reviews and features, subscribe to the free TabTimes for iPad newsletter).

Doug Drinkwater is the International Editor of TabTimes and is based in London, England.
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