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Why Apple introducing a 12.9-inch iPad could affect the market

Part 3
Why Apple introducing a 12.9-inch iPad could affect the market (Part 3 of 7)

Why a bigger iPad would help Apple succeed with enterprises

Microsoft is already a dominant player in enterprises

In the previous part of this series, we discussed how a bigger Apple (AAPL) iPad could overcome the potential threat from Microsoft (MSFT) in the tablet market. IDC predicted that Microsoft could gain share in the tablet market at the expense of both Google’s (GOOG)(GOOGL) Android-based tablets and iPads.

A bigger iPad could also help Apple increase its presence in enterprises, where Microsoft is a dominant player. Enterprises have traditionally used Microsoft’s productivity tools for PCs, such as Microsoft Office for professional work, and so can follow this tradition through Microsoft’s tablets as well.

During the conference call to announce its fiscal 3Q14 earnings, Apple mentioned that the iPad’s penetration in businesses is low, at only 20%, citing IDC. So how would a bigger iPad help Apple increase its penetration in enterprises? Let’s discuss below.

Tablet market forecast by segmentEnlarge Graph

The enterprise segment is becoming important for the tablet market

According to a report from IDC and as the chart above shows, the proportion of the commercial or enterprise segment of the tablet market could increase from 11% in 2013 to 18% in 2018 at the expense of the consumer segment. This underscores the importance of enterprises among tablet players.

Apple has already started to take some steps to improve its position in enterprises. A few weeks ago, Apple and IBM (IBM) entered into a partnership in which IBM would analyze the data collected from Apple’s devices. The purpose of the partnership was to create 100 mobile apps specifically for enterprise customers. Building apps for enterprises and then using IBM’s big data and analytics capabilities to improve productivity is one way of providing better service to enterprises.

Plus, a tablet and a laptop are considered different devices, catering to different needs. But a bigger iPad could blur that gap between a tablet and laptop. This would make the iPad more appealing to enterprises, as a bigger iPad would also act as a productivity tool similar to a laptop.

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