Dive Brief:
- Profits at Apple are falling as consumer demand for iPhones and Macs continues to slow.
- Apple reported Wednesday that Q3 net profit fell 27% year on year while revenue over the same period fell 15%.
- But the company is increasingly turning to the enterprise for new sources of profit as its consumer sales cool.
Dive Insight:
The enterprise market is becoming more and more important to those that sell technology products and solutions geared toward consumers.
During Apple’s Q3 earnings call, CFO Luca Maestri said Apple is making "great progress" with its enterprise initiatives, according to ZDNet, and that the company plans to continue to sharpen its enterprise focus.
One bright spot in the company’s latest earnings report was iPad sales. Apple said iPad revenue grew 7% in Q3. About 50% of its iPad Pro sales were for business use, Apple said.
Last year, Apple said it generated $25 billion in revenue from its enterprise business, representing about 11% of its total revenue from June 2014 to June 2015. But that number, Apple CEO Tim Cook said, is a "very small amount compared to what the opportunity is."
Apple recently struck a number of deals with enterprise software companies, including SAP, Cisco and IBM in hopes of building its enterprise business quickly.
