Apple Inc. (NASDAQ:AAPL) iPad Pro Can’t Jumpstart Enterprise Sales

Apple Inc. (AAPL) iPad Pro

With the new iPad Pro scheduled to be released in November this year, Apple Inc.  takes one more step in Enterprise IT industry. Introduced on September 9th, Apple sees iPad Pro as a ‘revolution’ of the iPad series. The new iPad Pro comes with a huge HD display – nothing like ever before. It is lighter and provides battery life all day.

Being innovative and powerful, this new iPad will lead to more advanced apps being added to the list of 850,000 apps designed only for iPads. Not to mention the latest features like Apple Pencil and Smart Keyboard; it seems that they have caught the craze of Gen Z, that is, the youths. Chi-Kuo, one of the most trusted Apple analysts, says that Apple will ship 5.5 million iPad Pro units in the first production run.

What Apple Thinks About iPad Pro

Apple, which has lately partnered with International Business Machines Corp.  and Cisco Systems, Inc. , is excited about the iPad Pro, as much as it was during the first iPad launch.

“iPad Pro is the most advanced and powerful iPad we have ever made. Its beautiful and large 12.9-inch Retina display has 5.6 million pixels and provides an immersive experience for content and apps. The iPad Pro is far and away the fastest iOS device we have ever made — its A9X chip beats most portable PCs in both CPU and graphics tasks, but is thin and light enough to hold all day,” said PhilSchiller, Apple’s senior vice president of Worldwide Marketing.

“The innovative Apple Pencil and new Smart Keyboard enable users to customize their iPad Pro experience to the particular apps they use and the work they do, making iPad Pro ideal for everything from professional productivity to advanced 3D design” he added.

What Analysts Thinks About iPad Pro

While analysts are concerned about the high ‘Apple Tax’ (an informal term for the high premium Apple commands over the value of the product), they are optimistic that it might help Apple enter the booming Enterprise IT market. As Rhoda Alexander, an IHS analyst, says: “Apple sees the iPad as the future of personal computing”, and iPad Pro is the right move to achieve that vision.

As per a Forrester study, business-owned tablets will reach as high as 20 percent of the total global tablet by 2018. Annual sales will reach around 250 million units by the same time. “While the consumer market sees vacillation, the percentage of tablets the business is purchasing and managing directly continues to increase steadily.” wrote analyst J.P. Gownder.

To put that in context, Gartner research says that the total IT spending is on its way to $3.5 trillion. $1.5 billion of that, the highest component, comes from the communication services market. Another $310 billion, that is 8.83 percent, comes from enterprise software market. To gain momentum, Apple might place iPad Pro into both the communication services and the enterprise software market.

Apple’s Big Surprise: $25 Billion

Tim Cook, Apple CEO, recently divulged at an annual meeting hosted by BoxWorks, an online storage upstart, that 14 percent of Apple’s revenue comes from Enterprise IT segment. That comes down to a massive $25 billion. It goes to show to what length Apple is targeting the B2B market. That, no doubt, came as a surprise to many Apple analysts.

Apple is already a huge device maker for the enterprise world and the $25B figure that Tim Cook puts on the firm’s sales in the market show one thing. The iPad Pro simply can’t start the firm’s dive into enterprise  sales because enterprise is already a huge part of Apple’s business.

And then we have the iPad Pro, one more weapon to enter the Enterprise IT industry. Apple  is “cooking” secret plans it seems.

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