Why Apple Devices are Losing Share to Chromebooks in Schools
Apple's Peripheral Businesses Could Expand
Chromebooks now has half of the US education market share
Chromebooks, the devices that run on Google’s (GOOG) Chrome operating system and use the Internet for cloud-based storage, have started to become popular in the US schools. According to a report from CNBC citing Futuresource Consulting, Chromebooks now command more than half of all the devices sold to US schools as of 3Q15 compared to just 1% in 2012.
Comparatively, as the chart below shows, Apple’s (AAPL) share has declined from 52% to 24% and Microsoft’s (MSFT) declined from 43% to 24% in this market during the last three years.
Chromebook’s rapid rise in the US has come on the back of the cheaper devices that it sells in the market. Google is employing a strategy to win over students by making the Chromebook their preferred device. Slowly, Google expects that these students will start using these devices at home, at college, and then at work.
Apple taking some steps to gain market share
This becomes a difficult situation for Apple. Already, Apple is involved in the controversy surrounding the iPad deal with the Los Angeles Unified School District. In September 2015, Apple and education software giant reached settlements with the LAUSD for $4.2 million and $6.4 million, respectively, to compensate the school district for difficulties stemming from technical glitches, as well as difficulties with the curriculum and training for the teachers.
However, Apple has taken some steps of late to resurrect its position in the education market. Apple and IBM (IBM) are developing an app to provide teachers with real-time data analytics of students.
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