Microsoft Gained Presence in the International Education Market
Apple's Peripheral Businesses Could Expand
Chromebooks face some issues in international markets
In the previous part of this series, we discussed how Google (GOOG) Chromebooks have become the preferred devices over both Apple (AAPL) and Microsoft (MSFT) in the US education market. However, the situation in international markets is completely opposite. According to a report from Futuresource Consulting, Chromebooks’ share in the international education market is only 3% as of 3Q15.
As the chart below shows, Chromebooks’ share in major International markets such as Brazil (EWZ), Mexico, and India is 1%, and it has almost no presence in China. The main issue with these countries is that they do not have the required broadband infrastructure to support the cloud-based storage requirements of Chromebooks. Another issue is that unlike the US, the schools in other countries have not started to adopt the practice of online assessments of students.
Microsoft is the main beneficiary in international markets
The main beneficiary of Google’s low presence in international markets is Microsoft. According to the same Futuresource report, Microsoft has won major K-12 projects in Mexico and the UAE. The company has also partnered with Lightspeed Systems to make it easy for IT administrators to deploy its devices in schools. Another encouraging sign for Microsoft is the support from PC manufacturers to adopt the Windows platform. For example, HP (HPQ) launched the HP Stream notebook and tablets last year based on Windows 8.
Another encouraging sign for Microsoft is the support from PC manufacturers to adopt the Windows platform. For example, Hewlett-Packard (HPQ) launched the Windows 8–based HP Stream notebook and tablets last year.
Apple, on the other hand, continues to price its products high in price-sensitive emerging markets. As a result, cheaper devices based on Microsoft’s operating systems are preferred there.
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