Sam OliverApple COO Tim Cook revealed during Tuesday's earnings report conference call that Mac sales in both the U.S. education and business markets have slowed due to budget constraints in both sectors.
In overall educational sales, Apple was down 6 percent. Cook said grades kindergarten through 12 fared worse, while higher education sales in colleges were about even with the same period a year prior.
Cook said things could turn around for Mac purchases in the educational sector when federal economic stimulus funds make their way down to individual schools. However, the executive said he is not confident that will happen in the coming September quarter.
"The U.S. K-12 institutional business is weak," Cook said. "As you might expect, and it’s getting hit by budget shortfalls, and last quarter we saw very negligible amount, if any, of the stimulus funds flow all the way to the state and district levels to get spent. So that may or may not occur this quarter."
Meanwhile, commercial and small business accounts are delaying purchases on new Macs, in an attempt to pinch pennies wherever they can. No specific data on business accounts was provided.
However, Cook said iPhone sales in the corporate, government and educational sectors are showing positive signs. Sales have been excellent with small businesses and large organizations that allow people to purchase phones for individual use.
The COO added almost 20 percent of Fortune 100 companies have purchased 10,000 iPhones or more, and over 300 higher education institutions have approved the device. Multiple corporations and government agencies have purchased more than 25,000 units.
Some schools, such as the University of Florida's PharmD program, have taken to requiring the iPhone or iPod touch for class.
"We think that we are just at the tip of the iceberg," Cook said, "in terms of what the iPhone can do with the business customer."
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67 Comments
Well I guess you can't have it both ways. You can't offer premium products at premium prices and try to appeal to public schools at the same time. I mean does BMW or Mercedes Benz supply our schools with cars for driver's education? I suspect Dell must be the leader in education based on their low prices.
As for the iPhone- shouldn't that be penetrating at a higher rate than 20% by now as compared to market share?
As for the U of Fl line - that's appears as if dropped in from an different article entirely. Note how the article then shifts right back to business. Cook is not adressing that. One school and one department program is not something I'd exactly brag about.What other schools are requiring iPhone or Touches for classes anyway? I'm curious.
Well I guess you can't have it both ways. You can't offer premium products at premium prices and try to appeal to public schools at the same time. I mean does BMW or Mercedes Benz supply our schools with cars for driver's education?
Well I think if they were serious, they'd go back to the strategy they used to have of selling discounted models specifically for education clients - ie. eMac, 17" iMac etc.
Well I guess you can't have it both ways. You can't offer premium products at premium prices and try to appeal to public schools at the same time. I mean does BMW or Mercedes Benz supply our schools with cars for driver's education?
Well Mercedes does provide school busses. Does that count?
Well I think if they were serious, they'd go back to the strategy they used to have of selling discounted models specifically for education clients - ie. eMac, 17" iMac etc.
With or without a glossy screen? (just kidding!)
I wasn't aware Dell was the leader in education sales???? Or is this just Techstudian math?