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Why the enterprise segment’s becoming important for Apple’s iPhone

Puneet Sikka

Why Apple announced mixed results ahead of its iPhone 6 launch (Part 2 of 6)

(Continued from Part 1)

Apple’s iPhone sales grew at a decent rate in fiscal Q3

In the previous part of this series, we discussed Apple’s (AAPL) mixed results for fiscal Q3 2014. We also discussed how the iPhone continues to contribute the most to Apple in terms of revenues.

Apple sold 35.2 million iPhones. This  was an increase of 4 million units or 13% over last year. This was also a record for any fiscal Q3 for Apple. Sales came at the high end of Apple’s own expectations—despite the fact that people generally stuck to their decision to buy a new device before the upcoming launch of the iPhone 6. Apple’s expected to launch the iPhone 6 in September this year.

Apple continues to gain smartphone subscriber share in the U.S.

According to a report from Comscore and as the chart above shows, Apple gained share in the U.S. smartphone subscriber market from February to May 2014. Samsung (SSNLF) also gained some share in this market due to the launch of the Galaxy S5 in April this year. LG, Motorola, and HTC (HTCKF) maintained their shares in the single digits. Note that Google (GOOGL) sold Motorola to Lenovo (LNVGY) early this year.

These numbers show that Apple’s position in the U.S. smartphone market hasn’t weakened.

The iPhone’s gaining acceptance in enterprises

During the company’s conference call to announce its fiscal Q3 2014 earnings, Apple’s management said that enterprises are rapidly adopting iPhones to improve employee productivity.

Medtronic (MDT), a medical device leader, has developed 175 iOS apps for its employees, who use 16,500 iPhones for internal purposes.

Then there’s the largest food company, Nestle, which uses 25,000 iPhones to conduct its operations.

Scientists at NASA also use 26,000 iPhones for professional reasons.

Continue to Part 3

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