Companies now big customers for Apple
In the primordial days of computing, IBM machines were so common inside corporations that there was a running joke in the industry: Nobody ever got fired for buying IBM.
These days, the same could be said about Apple. Even IBM is promoting Apple gear.
These days, the same could be said about Apple. Even IBM is promoting Apple gear.
Apple's iPhones and iPads have become the preferred mobile computing devices for corporations, as industries from insurers to airlines aim to ditch bulky PCs and give their employees the ability to do their jobs from anywhere using smartphones or tablets.
For Apple, which is struggling to reverse declining sales of its iPhones and Macs and has seen overall revenues drop for two quarters in a row, the corporate market is a surprising bright spot. Sales of high-end iPads to business customers in particular have been strong. Nearly half of all iPads are now bought by corporations and governments, according to the research firm Forrester.
For Apple, which is struggling to reverse declining sales of its iPhones and Macs and has seen overall revenues drop for two quarters in a row, the corporate market is a surprising bright spot. Sales of high-end iPads to business customers in particular have been strong. Nearly half of all iPads are now bought by corporations and governments, according to the research firm Forrester.
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"Apple is stronger in the enterprise market with its devices than it is with consumers," said Frank Gillett, an industry analyst at Forrester.
It is a long way from the days when Steven P Jobs, Apple's co-founder and longtime chief executive, derided corporate technology buyers as "orifices" and preferred to focus on building great products that would sell themselves.
Pinpointing exact figures for Apple's corporate sales is difficult. Apple said growth was strong but declined to disclose recent numbers. During its last fiscal year, which ended in September, Apple said it sold $25 billion in gear and services to companies and other large customers. While that was only about 11 per cent of the company's overall revenue, those business sales were up 40 per cent from the previous year. That's compared with 28 per cent growth for the entire business.
Companies are turning to Apple's products for their tight-knit hardware and software, advanced security features and intuitive interfaces. Aiding Apple's corporate sales has been a concern that phones and tablets running Google's Android software, which are generally cheaper and popular with consumers, have lagged in the security technology and the standardisation that companies want.
For British Airways, which has built more than 40 custom iPad apps for its work force, switching to tablets has eliminated reams of paper used for flight plans, passenger manifests and maintenance records. Another app allows anyone at the airline to grab an iPad and quickly rebook passengers when a flight is cancelled or weather wreaks havoc on schedules.
"We can get to customers wherever they are," said Abigail Comber, who is in charge of the customer experience at the airline. "It's technology that's very intuitive. What the team has managed to do brilliantly is take away everything that happens on the back end." The carrier has so far deployed its apps across 17,000 iPads, and is looking to digitise even more of its business.
It is a long way from the days when Steven P Jobs, Apple's co-founder and longtime chief executive, derided corporate technology buyers as "orifices" and preferred to focus on building great products that would sell themselves.
Pinpointing exact figures for Apple's corporate sales is difficult. Apple said growth was strong but declined to disclose recent numbers. During its last fiscal year, which ended in September, Apple said it sold $25 billion in gear and services to companies and other large customers. While that was only about 11 per cent of the company's overall revenue, those business sales were up 40 per cent from the previous year. That's compared with 28 per cent growth for the entire business.
Companies are turning to Apple's products for their tight-knit hardware and software, advanced security features and intuitive interfaces. Aiding Apple's corporate sales has been a concern that phones and tablets running Google's Android software, which are generally cheaper and popular with consumers, have lagged in the security technology and the standardisation that companies want.
For British Airways, which has built more than 40 custom iPad apps for its work force, switching to tablets has eliminated reams of paper used for flight plans, passenger manifests and maintenance records. Another app allows anyone at the airline to grab an iPad and quickly rebook passengers when a flight is cancelled or weather wreaks havoc on schedules.
"We can get to customers wherever they are," said Abigail Comber, who is in charge of the customer experience at the airline. "It's technology that's very intuitive. What the team has managed to do brilliantly is take away everything that happens on the back end." The carrier has so far deployed its apps across 17,000 iPads, and is looking to digitise even more of its business.
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