Why isn't Apple attacking the enterprise market?
There are few markets Apple can enter to continue its growth trajectory, given its size. Enterprise computing is such a market. With Apple silicon, supply chain, support infrastructure, and Mac laptops increasingly used on the client side, why isn’t Apple more aggressively attacking the enterprise market? Seems like a lost opportunity to me. Curious to hear thoughts on this.
44 comments
[ 1.9 ms ] story [ 109 ms ] threadLook at the products they make. They try to make stuff that targets the widest market possible; everybody. They try not to go for niche markets.
Obviously they could make a foray into enterprise hardware. They did it in the past. They have no interest. The addressable market is too small. As I already said, when Apple makes a product they want to the addressable market to be everyone.
So if Apple couldn't win the integrated product segment of the server market, they had to compete against the post-dotcom-bubble cloud behemoth. The one that had been more or less cannibalized by Linux and brought down to-cost or even below-cost by AWS. MacOS Server could carve out a cutesy niche as an accessible FTP server and Time Machine host, but they couldn't make a business out of it when Linux did it all for free.
Enterprise/Corporate/Govt all have tedious amounts of niche needs and requirements to endlessly grow.
Can’t find the quote as I’m on my phone, but when a former exec from Apple left and joined a corp, and asked Steve if he wanted to expand to corporate, he said he won’t stop him, but he isn’t going to help him either. (I’m sure I butchered it), but something like that.
Remember, IT = Control.
Their mainstream prosumer computers are also fine and widely used in many enterprises industries
Apple seems to be doing just fine (including financially) selling widgets to 'regular' consumers. They're already one of the largest companies in the world doing their current strategy: what would they gain from doing "enterprise"?
Further: please define "enterprise market".
Are we talking about hardware like servers? Data storage? Networking? Are you talking about ERP solution? CRM? Supply chain management? Business intelligence / analytics? HRM? Payroll? Identity management? Project management?
* https://en.wikipedia.org/wiki/Enterprise_software
What are the margins on those things? What are the volumes on units? Do you need a sales staff (perhaps working on commission)?
Apple products seem to already be quite popular and in demand, so I'm not sure what 'going after' another market would get them.
They are valued at 3.4 trillion dollars with a P/E ratio of 34. They can give a lot of that up, or they can continue to grow, as their current valuation demands.
> Further: please define "enterprise market".
It's simple enough to think of it as some thing they are not doing, but can do, to make money. It's much less of a stretch than cars, which is one thing they've explored.
Enough sales to bump their market cap needle to the tune of an additional $1 trillion or three.
I think if Apple revisited their old "bicycle for the mind" focus, with computers and software as productivity multipliers for individuals and business, it would naturally have an upstream path to enterprise.
Instead their newer unifying view of devices, apps and media, seems to flow through a services, social, entertainment and store/middleman/gatekeeper/kiosk lens.
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They stumbled onto Vision Pro as being a great Mac enhancer, but I predict that with their loss of productivity focus, they won't lean into where that could go.
"Apple Vision" (not Pro) should be the lower cost, shiny iOS-type $2.00 app sales kiosk "in 3D!" for "everyone" and "anyone", that Apple knows it wants out there.
"Apple Vision Pro" should become a fully Mac-independent Mac-eclipsing no-sandbox powerhouse that leverages visual and gesture computing into highly productive interfaces for deep individual and collaborative work. Justifying prices like $3500, $4500, etc. I know my Vision Pro desperately wants to be that!
Enterprise would see the value in that, once it was on their face.
I hope Apple creates that. But their ambitions seem to be much lower lately.
Just all round dealing with Apple and their products is a effin nightmare. It's impossible to explain ethics to Apple users too. They literally have their head in the sand. Apples so crap to service and work with its gotten to the point where I just double my rate to 160 an hour if you want to bring an apple device anywhere near me just to discourage it. Please if you have apple take your business elsewhere. But alas they keep coming and I keep replacing macbooks with real work machines.
https://web.archive.org/web/20011017163151/http://www.apple....
But every enterprise is chock full of iPhones and MacBooks, for which they collect very healthy margins.
Hardware is terrible quality, they have so many issues with faulty screens and charging and every time you have to send one back to Apple via a reseller it takes weeks and the fix cost is usually not worth it, so we have to write them off before they depreciate. Intel Macs often have issues triggering the installation for some reason, sometimes it takes dozen reboots to kick it off.
There's no staging for the OS, each device gets updates straight from the internet and every update breaks something. There has not been a single minor update in 13.x and 14.x that hasn't broken some backwards compatibility (breaking Keychain seems to be Apple's favorite thing) or changing user's settings such as notifications or security&privacy breaking third party software annoying the user and making our lives miserable and there's nowhere you can raise an issue, so you can't rely on building out (limited) automation because API calls keep getting removed, changed or removed in binaries but left in code like the call to trust a cert key in Keychain...
Safari is absolute trash. I have the worst opinion about people who made it, that browser doesn't not belong anywhere outside of testing. It's a complete and utter garbage, the only browser that doesn't know how to handle SSO sessions, can't remember certificate preferences and keeps prompting user for authentication when accessing Keychain when other browsers don't.
Apple Mail is the next worst piece of software I've ever whitnessed in my entire life, it's possibly the only mail client in the entire world that doesn't know how to re-use a connection to an IMAP server, it opens a new connection for every single thing possible absolutely hammering a mail server. This is just absolutely insane.
MDM is incomplete because of MacOS restrictions, there are lots of things you can't do which you would expect from the most basic MDM tool and the most annoying thing about it is that signing into an iCloud account prevents MDM from wiping the device essentially giving someone a device free of charge so what's the point of MDM then...
Apple's devices are built for retail consumers, not enterprise users.
So not only is the enterprise market a thankless one, but it would also clash with their message.
Selling enterprise software or hardware means paid lunches and dinners to steakhouses, 3-24 months sales cycles, multiple free workshops or demos or presentations. This all costs anywhere from $10K to even millions of $ plus sales teams and internal training, marketing, management and other overhead.
In the consumer market, there’s probably a lot fewer overheads.
I can’t think of any successful, non-consumer facing product that Apple has ever built - it’s not even clear it’s in their DNA. The closest I can think of is Xcode cloud.
Also most companies have already opted their employees into using Macs so that’s something that sells itself with very little sales prowess from Apple’s side.