Sunday, May 18, 2014

Chromebook - Education Market

In the past Apple has been the major player in the education market. That is starting to change. It is estimated that Google is taking more and more share of the education market with Chromebooks. In the 4th quarter of 2013 Google's share of the education market was estimated at 25%. Apple still has the largest portion of the education market, but it has started to fall. The biggest loser in the education market has been Microsoft. What I find interesting about this market is that Apple is the only one who makes money directly from this market. Google and Microsoft make money indirectly. Microsoft makes money from selling Windows to hardware manufacturers who then sell their systems to schools. Google doesn't make any money from schools. They make all their money from advertisers who now have access to a new audience courtesy of students spending more and more time using Google products. Though Google provides the operating system for Chromebooks, it does not charge hardware makers for it.

Which company is going to win in this market? Apple is still the clear winner, but Google is making inroads. The loser is Microsoft who can't seem to make the transition to mobile, tablets, and low cost laptops. This is going to be an interesting market to keep an eye on.

What do you think?

For more:
http://www.fool.com/investing/general/2014/05/16/google-vs-apple-which-will-own-the-education-marke.aspx