A $1.2 trillion market

Apple (AAPL) and German business software company SAP SE (SAP) are taking their enterprise mobility partnership to a new level. The companies recently announced a new agreement where they will collaborate to help their customers develop mobile business apps. The new agreement expands on a 2016 deal that involved SAP rebuilding its existing apps so they could run on Apple devices such as the iPhone and iPad.

Apple and SAP Expand iPhone Business Apps Pact

Enterprise mobility, or the use of mobile devices for business purposes, is gaining currency around the world as companies seek new ways to operate more efficiently. The global enterprise mobility market was valued at $206.1 billion in 2017 and is forecast to surpass $1.2 trillion by 2026, according to ResearchAndMarkets. Growing adoption of cloud computing and improving mobile Internet speeds are expected to drive the expansion of the enterprise mobility market. Amazon (AMZN) and Microsoft (MSFT), the world’s top-two cloud vendors, have been reporting double-digit growth in their cloud sales, indicating strong demand for cloud services.

5G could spur growth in enterprise mobility market

On the mobile Internet side, the transition to 5G mobile networks could greatly stimulate growth in the enterprise mobility market because of faster mobile connections. In the United States, AT&T (T) is underway with its 5G mobile network rollout, while T-Mobile (TMUS) and Sprint (S) are planning to begin offering 5G services before the year ends.

The latest partnership with SAP has the potential to better position Apple to capture the growth opportunity created by enterprise mobility.

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