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Why the iPad dominates the US education and enterprise markets

Puneet Sikka

Slowing iPad sales are Apple's only worry with its robust earnings (Part 4 of 5)

(Continued from Part 3)

The iPad completely dominates the U.S. education and enterprise markets

In the previous article of this series, we discussed why iPad sales are seeing a decline despite the fact that the tablet market as a whole is booming. However, during the conference call to announce fiscal Q2 2014 earnings, Apple (AAPL) mentioned that in the education sector, according to a report from IDC, iPad has over 95% share of the U.S. education tablet market. In the enterprise market, 98% of the Fortune 500 are using iPad, and according to Good Technology, 91% of the activation of tablets in enterprise were iPads.

iPad’s web traffic is huge

Although Apple has lost share in the tablet market, a Chitika report suggests that 81% of web traffic use on tablets in North America comes from iPads. Amazon (AMZN) and Samsung (SSNLF) each have market share of less than 7%, while Google (GOOG) and Microsoft (MSFT) each have market share of less than 2%. This shows that although people are buying fewer iPads, they’re using them significantly more. This high web traffic helps Apple generate more revenue not only from application downloads, but also from higher mobile web advertising income.

Apple claims that students’ achievements are higher with an iPad in the classroom

Apple mentioned that teachers and students increasingly benefit from the growing range of engaging iBooks, textbooks, and solutions that are helping to transform the education experience. Apple’s management mentioned, “The focus in education is on penetration, is on getting more schools to buy and my belief is the match has been lit, and it’s very clear to the educators that have studied this is that student achievement is higher with iPad in the classroom than without it. And so I’m confident we’ve got a really great start in education far beyond the U.S. now.”

Apple claims that companies become more productive by using iPads

Apple’s management also commented, “Many of those enterprises are writing apps that are key proprietary apps for running that business, and this is great for that company because they’re more productive as a result of that. And so once again, just like in education in a way, what we have to do in enterprise is focus on penetration. It has to be deeper and broader. But in terms of having people begin the process, beginning writing apps, we’re doing a pretty good job of that.”

Continue to Part 5

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