uploads///Mobile platform share of eneterprise device

Why Apple’s Enterprise Market Push Could Bear Fruit

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Apple earns $25 billion in revenues in one year

Of late, Apple (AAPL) has become a serious player in the enterprise market. It entered into a long-term partnership with IBM (IBM) last year, then collaborated with Cisco (CSCO) in May this year. According to a report from the Wall Street Journal citing Apple’s CEO, Tim Cook, the company managed to earn revenues of $25 billion from enterprises between June 2014 and June 2015.

This revenue represents ~11% of Apple’s overall revenues, compared to 50% of the overall revenues that Microsoft (MSFT) earns from enterprise business. However, Apple is optimistic about the growth potential of its enterprise business. According to Good Technology’s Mobility Index Report for Q2 2015, iOS’s share in device activation was 64% in 2Q15, while the shares of Android and Windows were 32% and 3%, respectively. This shows Apple’s leadership position in enterprises, particularly where it can further enhance its position through partnerships.

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Apple gains from its partnership with IBM and Cisco

In July 2014, Apple entered into a partnership with IBM, where IBM would analyze data collected from Apple devices. Since then, the two tech giants have continued to strengthen their partnership. Apple’s partnership with IBM has helped it better penetrate the enterprise market. Building apps for enterprises—and using IBM’s big data and analytics capabilities to improve productivity—is one way to provide better service to enterprises.

Apple’s collaboration with Cisco will enhance the appeal of iPhones and iPads in enterprises, as the devices will be integrated with Cisco’s network systems. In other words, companies that run on Cisco’s Internet networks will be able to transfer content securely and quickly to iPhone and iPad devices.

To gain exposure to Apple, you can invest in the PowerShares QQQ Trust, Series 1 ETF (QQQ). The ETF maintains 13.2% of its holdings in Apple.

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