Chromebook makes up 50% of market share
Tech giants Google (GOOG), Microsoft (MSFT), and Apple (AAPL) have been competing in the edtech market. For the first time, Google has surpassed its rivals. According to Futuresource Consulting, Chromebook now accounts for more than half of all devices in US classrooms. This compares to less than 1% in 2012.
The sudden change to Google came with the collapse of its rivals. Over the span of three years, Apple’s market share fell from 52% to 24%, and Microsoft showed a decline from 43% to 24%. In 2015, Chromebook accounted for 4.4 million of the 8.9 million devices sold to schools.
Google is incorporating an app for education into Chromebook that will allow students to share and collaborate their documents, work, and research projects. Chromebook has also come up with teacher-approved apps that enable authorized users to share content with individuals, the entire classroom, or the entire school with a single click.
Microsoft counteracts Google
Microsoft is planning a new Windows-powered device with its hardware partners to counteract Google. Microsoft has partnered with Lightspeed Systems, a cloud-based management company, to roll out a new product that will allow teachers to deliver curriculum content, manage devices, and share student screens.
Futuresource has predicted that in 2016, two-in-one devices that act as both a tablet and a notebook will be in demand. These devices are highly suitable for the classroom environment, but they’re still too expensive to gain widespread acceptance. In 2016, the average price for this device is expected to drop to $300–$500 compared to the earlier $500 and above. This could cause it to capture more of the US market.
Apple faces problems in the edtech sector
The iPad, which doesn’t have a physical keyboard, is not a two-in-one device. Google and Microsoft both have this feature. Over the years, Apple has dominated the edtech sector. But the company is now facing some issues with school districts, including the controversy over customized curriculum provided with the iPads provided to the Los Angeles School District and complaints that the product is too expensive.
The SPDR S&P 500 ETF (SPY) is a portfolio of 507 stocks. The top four stocks are Apple (AAPL), Microsoft (MSFT), Exxon Mobile (XOM), and General Electric (GE), which make up 3.6%, 2.3%, 1.9%, and 1.7% of SPY, respectively.