Chromebooks now has half of the US education market share

Chromebooks, the devices that run on Google’s (GOOG) Chrome operating system and use the Internet for cloud-based storage, have started to become popular in the US schools. According to a report from CNBC citing Futuresource Consulting, Chromebooks now command more than half of all the devices sold to US schools as of 3Q15 compared to just 1% in 2012.

Comparatively, as the chart below shows, Apple’s (AAPL) share has declined from 52% to 24% and Microsoft’s (MSFT) declined from 43% to 24% in this market during the last three years.

Why Apple Devices are Losing Share to Chromebooks in Schools

Chromebook’s rapid rise in the US has come on the back of the cheaper devices that it sells in the market. Google is employing a strategy to win over students by making the Chromebook their preferred device. Slowly, Google expects that these students will start using these devices at home, at college, and then at work.

Apple taking some steps to gain market share

This becomes a difficult situation for Apple. Already, Apple is involved in the controversy surrounding the iPad deal with the Los Angeles Unified School District. In September 2015, Apple and education software giant reached settlements with the LAUSD for $4.2 million and $6.4 million, respectively, to compensate the school district for difficulties stemming from technical glitches, as well as difficulties with the curriculum and training for the teachers.

However, Apple has taken some steps of late to resurrect its position in the education market. Apple and IBM (IBM) are developing an app to provide teachers with real-time data analytics of students.

For diversified exposure to Apple, you can consider the PowerShares QQQ Trust, Series 1 ETF (QQQ), which invests 12.6% of its holdings in Apple.

Latest articles

The future of the T-Mobile and Sprint merger remains unclear. Several state attorneys and Democratic senators have come together to oppose it.

According to President Trump, the US economy is “poised for big growth after trade deals are completed.” Markets are volatile amid the trade war.

Canopy Growth didn't impress investors with its earnings for the first quarter of 2020. The stock has fallen 12.4% since the company's earnings.

President Trump finally seems to acknowledge how the US-China trade war could impact tech giant Apple. Trump met with Apple CEO Tim Cook at a dinner.

As of August 13, HEXO (HEXO) was trading at 6.51 Canadian dollars—a fall of 30.9% since its third-quarter earnings on June 12.

On August 15, in an interview with CNBC, Mark Zandi said that the trade war hurts the US economy. The trade war has a negative impact on certain sectors.