Apple's corporate iPhone, iPad app strength bad news for rivals

Apple's corporate iPhone, iPad app strength bad news for rivals

Summary: Apple appears to be extending its lead in the enterprise with the tag team of the iPhone and iPad. Meanwhile, some corporate customers are developing custom iOS apps for their employees.

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Apple appears to be extending its lead in the enterprise with the tag team of the iPhone and iPad. Meanwhile, some corporate customers are developing custom iOS apps for their employees.

On Apple's third quarter conference call---following blowout earnings---CFO Peter Oppenheimer noted some serious enterprise strength. Here's what he said about the iPhone.

iPhone continues to be adopted as a standard across the enterprise, with 91% of the Fortune 500 deployed or testing the device, up from 88% last quarter. We are also seeing great growth in scale worldwide. Today 57% of Global 500 companies are testing or deploying iPhone, fueled by strong employee demand and opportunities for custom app development.

The key element there is "opportunities for custom app development." If corporations start developing iOS corporate apps, the chances of them suddenly dropping Apple are slim. After all, corporations developed applications for Microsoft's IE 6 and still have them even though the browser is antique and the software giant is begging them to ditch its ancient version of Explorer.

Also: 10 iPad 2 apps for business

Oppenheimer also cited global strength for corporate iPhone adoption. He cited Axa, Credit Agriole, Nestle and Dow Chemical as companies officially supporting the iPhone.

The pull of the iPhone is also rubbing off on the iPad. This point is also quite relevant to Apple table rivals, which are largely aiming at the enterprise.

On the iPhone front, Oppenheimer said:

Today 86% of the Fortune 500 are deploying or testing iPad within their enterprises, up from 75% last quarter. We are also seeing strong adoption internationally with 47% of Global 500 companies testing or deploying iPad. In the 15 months since iPad has shipped, we have seen iPad used in the enterprise in ways we could have never imagined.

Oppenheimer cited iPad wins at Boston Scientific, Xerox and Salesforce.com. He also cited hospital wins, which illustrates some vertical strength. He added:

General Electric, SAP and Standard Charter have developed internal apps for training, currency tracking and business process management to help make employees even more productive. Alaska Airlines and American Airlines are using the iPad in cockpits to replace paper-based navigational and reference information pilots carry with them on every flight. We continue to be delighted by the diverse and sometimes unexpected use cases we see around iPads.

Again, the key theme here is corporate apps. If enterprises develop on iOS they aren't going to budge for years.

Topics: Apple, Hardware, iPhone, iPad, Mobile OS, Mobility, Smartphones

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62 comments
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  • Given the praise that the writers here heap on Apple

    I find it odd that Apple's rivals would even bother to produce any competing products. It is illogical.

    It is clear by the bloggers here that competing products do not stand a chance of selling, so would not the money spent developing these tablets be better spent funding their employee's early retirement?

    :|
    Tim Cook
    • RE: Apple's corporate iPhone, iPad app strength bad news for rivals

      @Mister Spock

      It's not Apple's fault their competition is unable to compete. Apple is doing something the others can't figure out. Until they can, it's a one pony show. It has become very hard to out innovate Apple. Plus with their own IP and patent portfolio, companies can't replicate Apple's IP and call it their own the way Microsoft and others have done in the past.
      gtdworak
      • RE: Apple's corporate iPhone, iPad app strength bad news for rivals

        @gtdworak It is illegal to use the hard cash you have to innovate. Apple should not crush competition by creating good products. Apple should live and let live. Even if they innovate, they should allow competitors to copy for free

        [/sarcasm]
        browser.
      • RE: Apple's corporate iPhone, iPad app strength bad news for rivals

        @gtdworak A very bad news to google if htc lose the patent case agains apple .. google in this market is seeming to fall
        http://www.geekwindow.com/2011/07/apple-wins-patent-case-against-android.html
        TechExpert21
      • Bulls*it

        @gtdworak Apple is selling more iPhones in the enterprise because everyone wants the shiny iToy regardless that RIM and others have better enterprise integration. This is all marketing fluff.
        MSFTWorshipper
      • RE: Apple's corporate iPhone, iPad app strength bad news for rivals

        @gtdworak If you call out Microsoft, don't leave out Apple who zeroxes as much innovations as anyone else. The one thing Apple does really well is keeping everything from hardware to software design in house and creating a stable easy to use platform in iOS. I prefer MS products because they work the way my mind does, I have never been able to pick up a Apple product and intuitively use it efficiently.
        geier
      • You where on a roll until that BS line at the end

        @gtdworak

        About MS. Look, if you have to lie to convince yourself that everything you believe is true even though it's not, that's fine, but don't try pushing those lies off on us.

        And that IP and patent portfolio, if it's so great why did they steal Creative's menu system (and was forced to pay Creative for) for the iPod line, to name just one of many IP they've taken and called their own?

        Now that's known as "a truthful statement".
        William Pharaoh
      • RE: Apple's corporate iPhone, iPad app strength bad news for rivals

        @William Pharaoh

        "if it's so great why did they steal Creative's menu system (and was forced to pay Creative for) for the iPod line, to name just one of many IP they've taken and called their own?"

        Because they weren't, but nice revisionist history.

        Now that's known as "a truthful statement".

        William Pharaoh
        DeusXMachina
      • RE: Apple's corporate iPhone, iPad app strength bad news for rivals

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      • RE: Apple's corporate iPhone, iPad app strength bad news for rivals

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    • Ouch!

      @Mister Spock - or perhaps they could return the money to the shareholders.<br><br>Microsoft cannot chase Apple or Google and win. In the tablet market, it's Apple's game to lose. They own it today.
      Info-Dave
      • RE: Apple's corporate iPhone, iPad app strength bad news for rivals

        @Info-Dave
        Apple has a glass ceiling in that they will never pass more than about 30% market share in a given category. To do more than that they would have to drop their premium prices, which is unlikely, and it would also attract the attention of competition authorities.
        Google is insulated from that by their partnerships, but vulnerable on both IP concerns and their usual inability to move beyond their "one-trick" of online advertising, backed up by search.
        There is still room for more players in this space.
        A.Sinic
      • I agree with you...

        ... and I am more of a cynic than you are.

        I don't think Apple wants to dominate the markets they are in. The iPad is an aberration at this point. Apple's strength is in its profitability. From a financial perspective, they are already bigger than Microsoft, Dell and HP, combined.

        I hope HP can make an impact with webOS. And I hope RIM survives, even if just a niche player in the secure solution space. The worst thing that could happen would be for Apple to become the next Microsoft.
        Info-Dave
      • RE: Apple's corporate iPhone, iPad app strength bad news for rivals

        @A.Sinic
        Apple has a glass ceiling in that they will never pass more than about 30% market share in a given category? Except for the iPod.(>70%) And the iPad.(>80%) And the iTunes media store, largest digital media store on the planet.) And the app store. ($1.7 billion revenue in 2011 compared to $103 million for the Google app store.)

        "they would have to drop their premium prices?" You mean like the prices of the iPad and iPods which no one seems to be able undercut at any significant margin.
        Synthmeister
      • @Synthmeister

        Your response was much better than mine!
        Info-Dave
      • RE: Apple's corporate iPhone, iPad app strength bad news for rivals

        @Info-Dave But how long will they own it? New tablets are coming out often. I want to buy the latest and not have it be ourr dated in a few months.
        Sandra4
      • It would look like Ms isn't chasing them.

        @Info-Dave

        MS handed out some licenses for Win 7 tablets, but they haven't rushed out and created an iPad knock-off like Google did with Android.

        Look, Android is nice and all, but it's not in the same league as iOS (as sales would show), and Google and OEM's better realize this and fast.

        MS on the other hand looks to be taking a different approach, an ARM based Windows 8 solution, with Zune Marketplace already in place for PC's and XBox, some strong selling points, IMO.

        But can't say much until next 2012, so it's really a wait and see thing at this point and time.
        William Pharaoh
      • RE: Apple's corporate iPhone, iPad app strength bad news for rivals

        @sandra<br>"New tablets are coming out often. I want to buy the latest and not have it be ourr dated in a few months."<br><br>How can you fail to see the contradiction here?!? Any tablet you buy that is the latest will be outdated in a few months BECAUSE new tablets are coming out often. The only solution is not to ever buy a tablet, or a computer for that matter.
        DeusXMachina
    • RE: Apple's corporate iPhone, iPad app strength bad news for rivals

      @Mister Spock

      Most companies have completely underestimated the investment required to duplicate Apple's products, much less innovate and surpass Apple in some way. Even companies like HP that had the resources to invest billions have failed to understand this. They all thought that producing a hardware knockoff was enough, but it wasn't even close. The iTunes infrastructure, the carrier agreements, and the marketing clout of Apple have contributed as much or more to Apple's success, and every single competitor has failed in these areas.

      So I don't think there will be any viable competitors to Apple for a long time. There is no chance that Apple will allow a competitor to access the iTunes and App Store infrastructure, so until the Android Market, Amazon, or some other 3rd-party infrastructure can become as useful and ubiquitous, Apple has the market sewn up.
      terry flores
    • RE: Apple's corporate iPhone, iPad app strength bad news for rivals

      @Mister Spock I have a top of the line computer and a Kindle. I stay at home most days, so I have these available to me. Why would I need an IPad?
      Sandra4