How Apple Became Red Hot in the Enterprise

Almost overnight, it seems that Apple and its products, led by the iPhone, the iPod and the Mac, are everywhere -- including in the corporate enterprise.

Apple's presence as a favorite staple in the consumer market segment is accepted, expected and taken for granted. The corporate enterprise is another matter. Apple hasn't been a significant player in the corporate enterprise and networking arena since the late 1980s. All that started to change over the last three years.

The ascension of the iPod and the iPhone as "must have" consumer devices ignited interest in using Apple devices in corporate offices. What began as a singular grass roots movement, bringing Macs in through the back door, has now morphed into a ongoing sustained trend that mirrors Apple's own waxing fortunes." By Sphoom Blogspot Dot Com"

A Misty Crystal Ball?

Apple was less than exuberant in its guidance for the next quarter. Oppenheimer expects gross margins to decline to 34 percent. Revenues would be between $11.3 billion and $11.6 billion, and earnings per share would be between $1.70 and $1.78, he added.

"Guidance remains below expectations, but remember, Apple tends to be conservative," said Blin. "Wall Street was looking for fiscal fourth-quarter earnings of $1.91 on $11.45 billion in sales."

In general, analysts were disappointed at Apple's conservative guidance. However, investors must remember that Apple uses guidance as one of its tools of war -- its usual practice is to set expectations low and then exceed them. Keeping a low profile keeps it from shocking investors if demand falls off, and it also lets Apple beat street forecasts regularly, which is good for its image.

Apple has an opportunity to work the enterprise market, Gartner's Kitagawa said. "There is demand from users for the Mac even though IT departments don't want to support them," she pointed out. "But Apple seems to be careless about this market."
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