Piper Jaffray: Apple/IBM Deal Won’t Lead to Surging Device Sales for Apple

Piper Jaffray: Apple/IBM Deal Won’t Lead to Surging Device Sales for Apple

Investment firm Piper Jaffray believes that while Apple’s new partnership with IBM will strengthen its position in the corporate world, it probably won’t add up to much in terms of overall iOS device sales.



Analyst Gene Munster’s take on the new Apple-IBM partnership was declared in a note to investors on Wednesday, a copy of which was provided to AppleInsider. He noted that iOS devices are already being tested or deployed at 98 percent of Fortune 500 companies, and 92 percent of Global 500 corporations.

“We do not expect the IBM partnership to have a meaningful impact on Apple’s financials overall primarily based on our belief that large corporations are already utilizing iPhones,” Munster wrote. “We believe that IBM will add incremental functionality for corporate customers, but is unlikely to be the make or break factor for a large corporation in utilizing iOS.”

Munster doesn’t see much of a surge in enterprise sales for Apple, leaving the consumer market as the iOS device maker’s primary target.

Munster gave an example, saying that if the new IBM deal were to prompt half of the Fortune 500 to each buy an additional 2,000 iPhones and 1,000 iPads over what they were previously planning to purchase, it would amount to only a half a percent of projected calendar year 2015 revenue.

The new Apple/IBM partnership, dubbed “IBM MobileFirst for iOS,” was announced on Tuesday.

IBM has developed over 100 native apps and services for iOS, tailored to the needs of numerous industries. IBM will also sell and lease iPhone and iPad devices to businesses, providing businesses with packages, and also activation and management services. It will also handle onsite repairs.

Apple will be introducing a new AppleCare warranty program aimed specifically at enterprise customers, which will include 24/7 phone and email support.

What’s your opinion? What type of impact will the Apple/IBM partnership have on the enterprise market? Please share your opinions in the comments section below.