Why IBM’s deal with Apple could impact other players


Nov. 26 2019, Updated 4:21 p.m. ET

Deal is symbiotic for both the players

By collaborating with IBM, Apple’s iOS wants to make itself a default enterprise device for large corporate deployments. IBM’s experience in enterprise scalability will help Apple scale up as well.

According to ChangeWave Research, among the U.S. companies that plan to buy smart phones for their employees in the next quarter, 69% will choose iPhones. In comparison, 41% will choose Android devices, 20% will choose BlackBerry (BBRY), and 10% will choose Microsoft (MSFT) Windows’ phone.

Gartner named IBM as a leader in its Magic Quadrant for Mobile Applications Development. The partnership with Apple will enhance its position in the mobile and cloud space. It will provide the company with a potential new revenue source.

operating systems

Deal is expected to increase the competition

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IBM (IBM) and Apple’s (AAPL) partnership wants to bring enterprise mobility into the mainstream. It will benefit all of the players in the space. IBM’s vertical-specific services are built for iOS devices. They have the potential to impact the adoption of MSFT Office365 in the organizational space. SAP (SAP) and VMware will likely benefit from this deal because they’re interested in enterprise mobility tools for their growth.

Blackberry’s share price fell

BBRY is a smart phone manufacturer. It identified enterprise mobility as its growth area. In the current times of cloud, “big data,” and Internet of things (or IoT), security remains the top concern. Blackberry is known for its security solutions. However, with the two leading players—Apple and IBM—forming a partnership, Blackberry will likely face stiff competition.

The day that the deal was announced, Blackberry’s stock fell ~12%. The stock increased to ~6% when IBM announced its 3Q14 results.

Click here to learn more about Blackberry’s results.


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