Chromebook leaves Apple Inc.’s (NASDAQ:AAPL) ipad Behind


For the first time after getting introduced two years back the Chromebook from Google Inc. (NASDAQ:GOOGL) and other manufacturers during the third quarter of 2014 has sold more than the Apple ipads in U.S classrooms. The chromebooks now cover more than a quarter of the education market, although this figure is excluding the Apple Macbook. When we include the Macbook in the numbers, the Chromebooks are definitely behind the Apple (NASDAQ:AAPL) sales.

It is also way behind laptops that are based on Microsoft windows. In the second last quarter of 2014 Google Inc. (NASDAQ:GOOGL) shipped 715,500 Chromebooks while Apple Inc. (NASDAQ:AAPL) shipped 702,000 IPads. This was reported on a Sunday night in the Financial times and the data was taken from IDC. Besides Google, there were other companies that promoted the sale of Chromebooks in the U.S schools such as Hewlett, Samsung, Dell and Acer.

The basic advantage that Chromebooks have over Apple Inc. (NASDAQ:AAPL) iPads is that the Chromebook costs $199 while Apple Inc.’s (NASDAQ:AAPL) iPad Air even after educational discount costs $379. Also, the Chromebooks are easy to manage for a school region’s IT department to handle. The financial times also tells that Pearson made a plan with Apple Inc. (NASDAQ:AAPL) to provide an iPad for each student studying in the Los Angeles Unified School District at a price of $ 500 million.

Controversy arose upon the tender process of the deal and the deal was not finally made and then the district chose Chromebooks instead with the windows based laptops in place of Apple Inc. (NASDAQ:AAPL) iPads. Sales of Apple Inc. (NASDAQ:AAPL) ipads have decreased significantly since their introduction in 2010. According to IDC statistics, two year growth in Apple Inc. (NASDAQ:AAPL) ipad sales will be 7.2% this current year, a sharp decrease from 52.3 % in the previous year.

The research firm also expects Apple Inc. (NASDAQ:AAPL) ipad shipments to show a full year fall in sales for the year 2014. An IDC executive said in a statement that when Tablets were produced they were expected to work like, and resemble smartphones. It was expected that a tablet would have an average life cycle of 2 to 3 years. What has gone wrong is that consumers are using these devices for a period greater than 3 years and in some cases users have the same devices for more than four years.

The two main reasons that IDC has found out for the longer life cycle of these devices is firstly the availability of softwares for the older products especially in IOS and secondly the use of smartphone in computing jobs. Decreased sales to schools and a greater life cycle of its products are bad news for Apple, but not new to Apple. Apple’s IPhone is what separates Apple (NASDAQ:AAPL) from other brands and gives Apple the edge over other competitors. Till now as Apple is not facing any problems with its IPhone, it is really not in much danger.