Apple Back to School promotion off to strong start, analyst says

Posted:
in Current Mac Hardware edited January 2014
In spite of initial skepticism from industry watchers, Apple?s annual Back to School promotion is off to a strong start, pushing a fourfold increase in Mac sales over that of Windows PCs by college students in some circles.



Global Equities Research analyst Trip Chowdhry issued a note to investors earlier this week pointing out that education sales of Apple?s Macs have been significantly outselling Windows PCs. The firm?s research indicated that ?80% of incoming students are buying Apple Computers vs. Windows Computers.?



Apple this year is offering education customers a $100 iTunes store credit with the purchase of a qualifying Mac. The deal was originally thought to be less attractive than the promotion from recent years, but, based on the recent statistics, interest in this year?s promotion has not suffered as a result of the change.



Interestingly enough, though Apple?s advertisements suggest students would use the credit to buy apps from the Mac App Store, most are choosing to buy songs. The report also notes that Senior students are showing ?strong interest? in purchasing an iPad before school begins, while more students attending online universities such as Phoenix Online are buying Macs than in years past.



Chowdrhy also reports that Apple is enjoying substantial success in the Enterprise. New data indicates that ?probably about 35% of Fortune 500 companies are giving Apple as a Choice to its employees, and majority are preferring Apple over Windows.?



The report believes that Apple's gains are a result of ?the success of iPad is putting pressure on Enterprise IT to not only support iPad, but also Apple iPhones and Apple iMacs and MacBooks,? going as far as to say that high-level executives are ?influencing the IT to bring Apple products into the Enterprise.?



GER predicts that iTunes will contribute $13 billion in revenues in fiscal 2013, due to increased support of Apple?s iBook Store and rising sales in App Store, which has recently passed 15 billion downloads.



In one final comment sure to please the Cupertino, Calif.-based iPhone maker, the firm?s report suggests that the ?Apple iOS Developer Ecosystem continues to grow at the expense of Android, RIMM and Windows.? Chowdhry said ?developers are increasingly developing? for iOS, with iOS 5 serving as ?another catalyst? in shifting developer momentum.



To conclude, GER adjusted its revenue estimates upward ?to reflect a strong back to school sales of Apple computers, market share wins of Apple in the enterprise and acceleration in Apple?s iBook and AppStore.? The analyst predicts the ?Other?s category? in Apple?s iTunes will have a compound annual growth rate of 39 percent over the next three years, though he cautions that rising gasoline prices could negatively affect ?all Equities including Apple.? The analyst reiterated the firm?s 12 month price target of $400.
«13

Comments

  • Reply 1 of 60
    MacProMacPro Posts: 17,382member
    I love the part where it says high-level executives are “influencing the IT to bring Apple products into the Enterprise.” Sweet.
  • Reply 2 of 60
    apple ][apple ][ Posts: 8,360member
    Quote:
    Originally Posted by AppleInsider View Post


    The deal was originally thought to be less attractive than the promotion from recent years, but, based on the recent statistics, interest in this year?s promotion has not suffered as a result of the change.



    I'm not surprised by this. Apple doesn't need to do any ridiculous deals or make outrageous offers in order to entice new customers.
  • Reply 3 of 60
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by digitalclips View Post


    I love the part where it says high-level executives are ?influencing the IT to bring Apple products into the Enterprise.? Sweet.



    I'm already hearing about it with the iPad. Investment banks that didn't have any Mac products outside their print-shops are now looking at issuing their salesmen and brokers with them. Soon IT departments will be expected to supply and support in-house apps for them. Then hopefully the bridgehead will be secured and the apple hordes can storm the windows citadel, bringing polished GUI's and unix based reliability to us all.



    I can dream.
  • Reply 4 of 60
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by Apple ][ View Post


    I'm not surprised by this. Apple doesn't need to do any ridiculous deals or make outrageous offers in order to entice new customers.



    I think it's more that every student already has either an iPod or an iPhone anyway at this point. The old offer just didn't make sense.
  • Reply 5 of 60
    ecphorizerecphorizer Posts: 533member
    Quote:
    Originally Posted by digitalclips View Post


    I love the part where it says high-level executives are ?influencing the IT to bring Apple products into the Enterprise.? Sweet.



    Uh, can't "high-level executive" wield more than "influence" with their IT departments? Like maybe the novel notion of mandating that Apple products be part of the mix?



    It's time to break the stranglehold that MS' shills, the corporate IT drones, have on innovation, choice, and creativity in the selection of such devices by employees.
  • Reply 6 of 60
    starbirdstarbird Posts: 42member
    Quote:
    Originally Posted by Ecphorizer View Post


    Uh, can't "high-level executive" wield more than "influence" with their IT departments? Like maybe the novel notion of mandating that Apple products be part of the mix?



    It's time to break the stranglehold that MS' shills, the corporate IT drones, have on innovation, choice, and creativity in the selection of such devices by employees.



    I'd love to agree with you and say they "mandate" Apple products, but there are so many legacy systems and software packages out there that are Windows (or if web based, IE 6) reliant. So you can't just abandon ship.
  • Reply 7 of 60
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by Ecphorizer View Post


    Uh, can't "high-level executive" wield more than "influence" with their IT departments? Like maybe the novel notion of mandating that Apple products be part of the mix?



    It's time to break the stranglehold that MS' shills, the corporate IT drones, have on innovation, choice, and creativity in the selection of such devices by employees.



    For a big firm with a huge entrenched IT function, ordering IT around is like ordering around your drug dealer. Yes, you are his customer, but you are also dependent on what he supplies you - so negotiations are somewhat more delicate.



    Often in big firms the IT departments metastatize, with business areas hiring their own IT guys to try to avoid the ossified central IT and their refusenik attitude to any request. Then phases of recentralization take place to try to rein in spending, leaving the central IT department trying to manage a ton of projects that it didn't create in the first place.



    Add in that you probably outsourced half your low level grunts to Bangalore, and now you're stuck with long term contracts to a firm out there with no mac expertise and probably precious little with windows.



    The result is a huge great hairy mess.
  • Reply 8 of 60
    hankx32hankx32 Posts: 121member
    If my dad, who can't even use a stereo properly, has never once called me for help figuring out how to use his Macbook, then what does the word IT and Mac have in relation to each other? Mac is to IT, as automobile is to horse and buggy fixer.
  • Reply 9 of 60
    sdbryansdbryan Posts: 310member
    Quote:
    Originally Posted by cloudgazer View Post


    I think it's more that every student already has either an iPod or an iPhone anyway at this point. The old offer just didn't make sense.



    Perhaps, but there is a damn new iPod touch every year that is clearly more capable (new and/or better sensors, faster graphics, etc). In any case if this survey is accurate the news for MS is more dire than I could imagine. Even the nuclear option (free xBox! vs $100 iTMS gift card) fails to entice. Maybe 80% already have an xBox.
  • Reply 10 of 60
    scotty321scotty321 Posts: 313member
    What is up with all these pen names that Daniel Eran Dilger writes under? I think they're hilarious, but I'm wondering why he writes under so many different names??
  • Reply 11 of 60
    boredumbboredumb Posts: 1,405member
    [QUOTE=sdbryan;1897575]Perhaps, but there is a damn new iPod touch every year that is clearly more capable (new and/or better sensors, faster graphics, etc).



    you are right, there IS a hot, new, more capable one out every year...and it typically debuts the week after the promotion ends, so you are always going to be just behind the 'cool' curve.
  • Reply 12 of 60
    _hawkeye__hawkeye_ Posts: 139member
    Quote:
    Originally Posted by AppleInsider View Post


    …companies are giving Apple as a Choice to its employees, and [the] majority are preferring Apple over Windows.



    Well duh!
  • Reply 13 of 60
    planktonplankton Posts: 103member
    But why no BtS campaign in Japan AS Shibuya and AS Ginza?



    I have to buy a MacBook Air for HS next week as soon as they are released (school just made MacBook obligatory for next HS term) but there is no promo. A real PITA.
  • Reply 14 of 60
    stelligentstelligent Posts: 2,680member
    This Chowdry report does not make sense. While it is true that the Apple Back to School campaign is currently running, school is OUT right now! How can he possibly assess that "“80% of incoming students are buying Apple Computers vs. Windows Computers" when students have been more outgoing rather than incoming?
  • Reply 15 of 60
    stelligentstelligent Posts: 2,680member
    Quote:
    Originally Posted by plankton View Post


    But why no BtS campaign in Japan AS Shibuya and AS Ginza?



    I have to buy a MacBook Air for HS next week as soon as they are released (school just made MacBook obligatory for next HS term) but there is no promo. A real PITA.



    MacBook is mandatory in a HS in Japan? Wow!
  • Reply 16 of 60
    ameldrum1ameldrum1 Posts: 249member
    Quote:
    Originally Posted by cloudgazer View Post


    I think it's more that every student already has either an iPod or an iPhone anyway at this point. The old offer just didn't make sense.



    Then why didn't Apple provide a $229 iTunes voucher?
  • Reply 17 of 60
    shenshen Posts: 434member
    Quote:
    Originally Posted by stelligent View Post


    This Chowdry report does not make sense. While it is true that the Apple Back to School campaign is currently running, school is OUT right now! How can he possibly assess that "?80% of incoming students are buying Apple Computers vs. Windows Computers" when students have been more outgoing rather than incoming?



    Maybe they have some sort of occult connection, a black magic spell that let's them know who will attend school next year...
  • Reply 18 of 60
    ameldrum1ameldrum1 Posts: 249member
    [QUOTE=boredumb;1897615]
    Quote:
    Originally Posted by sdbryan View Post


    Perhaps, but there is a damn new iPod touch every year that is clearly more capable (new and/or better sensors, faster graphics, etc).



    you are right, there IS a hot, new, more capable one out every year...and it typically debuts the week after the promotion ends, so you are always going to be just behind the 'cool' curve.



    Unless you're in the southern hemisphere :-) in which case the back to school promo starts after the shiny new stuff has been released...
  • Reply 19 of 60
    firefly7475firefly7475 Posts: 1,502member
    Come on guys. Do we believe these analysts now or not???



    Everyone can't just accept what these guys have to say as indisputable fact when it suits them and call them charlatans when it doesn't.



    Global Equities have a $400 price target on AAPL. That alone should mean the author needs to at least verify the source.



    Where is the research? What methods did they use?



    They say "our research indicates that ~80% of incoming students are buying Apple Computers vs. Windows computers".



    So does that mean 8 out of 10 computers sold to students were Macs?



    Or maybe it means 8 out of 10 computers sold to students who had a choice between Windows and Mac choose Mac.



    Or maybe it means 8 out of 10 students they polled walking out of an Apple store bought a Mac instead of Windows.



    I'm not saying the research is wrong. I'm just saying we need to see it to make up our own minds.
  • Reply 20 of 60
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by ameldrum1 View Post


    Then why didn't Apple provide a $229 iTunes voucher?



    Because the cost to Apple of $100 of iTunes music is probably around the same as a $200 iPod. You realize that their margins on music are far lower than on hardware right?
Sign In or Register to comment.