Analysts React to Partnership Between Apple and IBM


Yesterday, Apple announced that it will be teaming up with IBM to transform the current state of enterprise mobility.

Fortune has compiled a list of reactions from various industry analysts, which range from positive to negative. Piper Jaffray’s analyst Gene Munster said that the partnership between Apple and IBM will not have an impact on Apple’s bottom line.

Gene Munster, Piper Jaffray: It’s Still All About The Consumer. “We do not expect the IBM partnership to have a meaningful impact on Apple’s financials overall primarily based on our belief that large corporations are already utilizing iPhones. We believe overall that IBM will add incremental functionality for corporate customers, but is unlikely to be the make or break factor for a large corporation in utilizing iOS. We note that if half of the Fortune 500 were to each purchase an incremental 2,000 iPhones and 1,000 iPads above what they were planning to purchase as a result of the IBM deal, it would mean about a half a percent to CY15 revenue. Additionally, we expect IBM to eventually offer similar solutions on Android over time, thus we believe Apple’s innovation on the OS and hardware remain the most critical factors in device sales.” Overweight. $105.

Credit Suisse analyst Kulbinder Garcha believes that Apple could benefit from IBM’s large enterprise audience.

Kulbinder Garcha, Credit Suisse: Apple and IBM: a partnership is formed. “We view this partnership as positive for Apple in gaining further traction and solidifying its position with Enterprise by leveraging IBM’s large installed base. [It] will offer: i) more than 100 enterprise apps created for iPhone/iPad; ii) IBM cloud services for iOS devices, including device management, security, analytics and integration; iii) AppleCare enterprise grade support; and iv) packaged offerings around enterprise device activation, supply and management.” Overweight. $96.

Cantor Fitzgerald analyst Brian White says that the partnership could eventually lead to an iPhone and iPad in every office cubical.

Brian White, Cantor Fitzgerald: An iPhone and iPad Potentially in Every Cubicle. “With great mobile device experiences for consumers now available, we often ask ourselves why so many people remain handcuffed to inferior mobile devices in the workplace that not only reduces efficiency but also increases frustration. We believe tonight’s announcement could represent the beginning of an initiative to free workers from inferior mobile experiences and open up new opportunities for enterprise productivity.” Buy. $111.

The reason behind the partnership between the two tech giants is to redefine the way enterprise users get their work done and to address key challenges in the industry. The partnership will allow Apple to bring IBM’s data and analytics capabilities to iOS devices.

Do you think the partnership between Apple and IBM will be a benefit to both companies, as well as a benefit to consumers? Let us know in the comments below.