Apple Q1 2014 Earnings, Enterprise Sales: Wonderful Problems
When Apple (AAPL) announced Q1 2014 fiscal results today, the iPhone and iPad maker disappointed investors with slower-than-expected revenue growth. But take a look at Apple's enterprise penetration and plenty of rival CEOs would love to have Tim Cook's problems. Here's why.
During an Apple earnings call this evening, a JP Morgan analyst asked Cook about Apple's enterprise momentum and ongoing opportunities. Cook's response:
"It’s clear that the enterprise area has huge potential, and we’re doing well from a percentage of companies that are using iPhone and iPad. It’s up to unbelievable numbers."
Cook noted:
- 97 percent of the Fortune 500 and 91 percent of the Global 500 have iPhone users
- 98 percent of the Fortune 500 and 93 percent of the Global 500 have iPad users.
- 90% of tablet activations in corporations are iPads. And 95% of total app activations were on iOS.
"And so I think the road in enterprise is a longer one," Cook added. "The arc is longer than in consumer, which can immediately go out and buy things, etc. And I think we’ve done a lot of the groundwork as you can tell from these numbers that I’ve given you, and I would expect that it would have more and more payback in the future."
Does that mean Apple will become an enterprise company? Hardly. Apple has always empowered individual users — rather than large enterprise teams. Also, Cook's Fortune 500 and Global 500 stats could be a bit misleading: Was he referring to end-users who bring the devices to work — or enterprise accounts that actually purchase and manage iOS devices for customers?
Either way perhaps the point is moot: Apple is everywhere in today's large businesses. For VARs and MSPs, that offers plenty of IT management and mobile device management opportunities…