Apple is still eating Microsoft in the mobile enterprise

Apple continues to grow in the mobile enterprise, according to Good Technology, even while iPhone 6 series devices are on track to grab big gains from Android in the US.

69

Good Technology this morning released the latest iteration of its Mobility Index Report, in which it found iOS holds 69 per cent of the enterprise market — that’s nearly seventy times larger than the 1 percent share held by Microsoft.

It also found:

• iOS reversed a decline in activation share and won share from Android in the enterprise;
• iPhone 6 outpaced iPhone 6 Plus in its first partial month;
• Custom app activations more than doubled quarter over quarter.

The new iPhone models are boosting Apple’s growth. Good Technology claims the smaller iPhone 6 is the more popular, accounting for 85 percent of new iPhone activations. The iPhone 6 Plus claimed 15 percent.

The first solutions jointly developed Apple/IBM solutions are already appearing, driving further Apple enterprise gains and forcing Microsoft to innovate — great for enterprise consumers.

Reliable suppliers

The commodity Android platform appeals more to low end cash conscious consumers than to enterprise users seeking stability, security, long term product support, manufacturer commitment or clarity regarding future product plans and upgrade paths. Enterprises need reliable suppliers.

All the same, Android accounted for 29 percent of enterprise smartphone activations during the quarter, down from 31 percent in the previous quarter.

The iPad took 89 percent of activations during the third quarter, while Android tablets claimed the remaining 11 percent. Windows tablets are yet to make a dent,

Apple owns the enterprise: 98 percent of the Fortune 500 and over 92 percent of the Global 500 are using iOS devices in their business today.

What makes this most interesting, of course, is that the current situation is very much the reverse of the shape of the PC market, in which Apple plays second place to Microsoft. This shape is changing as Apple continues to grab market share at a rate that exceeds industry growth. There are also strong signs it is about to make significant gains against Android in the US.

Shift pattern

Samsung is faltering, shedding cash in consequence of its heavily subsidised business model, and Apple has introduced its already wildly popular iPhone 6 series phones.

The slowing momentum of the former Apple partner is evidenced in a small way by the evident shift in Android industry reporting — where we were once told every Samsung device was formerly the “best ever”, we now get told those Nexus machines are “best of breed”.

The sweet irony in this shift is Google’s direct involvement in the manufacture and design of Nexus devices — a pattern that reflects Apple and its “whole widget” approach more than it does the unproven “open always wins” mantra — are Google’s search algorithms “open”? Is it the search market leader?

“Samsung’s been holding up Android’s US market share for quite some time. Not growing – just maintaining,” writes AAPL Tree. “With Android’s bedrock support and “growth driver” suddenly on its heels, the stage is set for Apple to make a major, long-lasting run at US smartphone market share gains…. much of it will come at Android’s direct expense.”

Prognosis

The next 12-24 months are critical for the smartphone sector.

Expect mergers, strategy shifts and to find that the eventual market share carved out by the protagonists will become relatively static, with attention focused instead on growing presence in the wearable/M2M ecosystems. 

Nothing is cut and dried, of course — but Apple holds a strong hand in the game.

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