Apple is introducing a new volume purchase program for mobile applications that promises to give IT departments a streamlined method for securely acquiring and deploying business-to-business (B2B) software across the iPhones and iPads throughout their organizations. Though Apple's mobile app sales only currently account for about one percent of revenue, the new program is expected to help boost Apple's app sales right across large U.S. enterprises, government agencies and organizations.
Moreover, Apple's new bulk app strategy may help the company quickly build the same level of brand loyalty within the U.S. enterprise space that the iconic device maker already enjoys among consumers. According to a recent survey conducted by Futuresource Consulting, 54 percent of iPhone owners in the U.S. and U.K. indicated their commitment to the Apple brand because of their desire to retain the mobile apps they have come to depend upon.
There are about 425,000 apps currently available from the Apple App Store versus about 200,000 in the Android Market, according to Piper Jaffray. "The App Store brings new features to Apple's iOS devices and creates a virtuous cycle driving sales of iPhones, iPads, and iPod touches," Piper Jaffray analysts Gene Munster and Andrew Murphy explained.
Secure Purchasing and Management
To help boost enterprise adoption, Apple plans to offer business-to-business apps that are customized to meet the individual needs of enterprise-class customers. For example, Apple said it intends to work with its third-party developers and business partners to address the individual interface and business process requirements of large organizations, as well as offer full compatibility with their unique back-office environments.
What's more, IT departments will be able to control which workers become activated by providing app redemption codes in an e-mail or from an internally hosted web site. And Apple noted that 19 third-party mobile device management (MDM) platforms are currently available to assist IT administrators with redemption code management.
The available MDM offerings will give IT administrators the ability to wirelessly configure and update device settings, as well as monitor device compliance with corporate policies. Additionally, IT departments will be able to remotely wipe or lock any managed device from a single centralized location.
To enroll in the new program -- which Apple said is "coming soon" -- companies will need to submit their Dun & Bradstreet number, together with their main office address and contact information. Thereafter, approved clients will be able to purchase mobile apps in bulk by completing their secure transactions through the use of a corporate credit card.
A Steep Climb for Rivals
Piper Jaffray estimates that the number of mobile app downloads per iOS device will increase 61 percent this year, versus the five percent annual increase that Apple recorded in 2010. "We see this as evidence of the increasing importance of the App Store in the device-buying decision," Munster and Murphy explained.
Apple's immense number of iOS apps will make it that much harder for mobile rivals such as Research In Motion to make any headway once the BlackBerry maker finally introduces a new mobile OS next year. The BlackBerry maker's growth has already stalled -- even as the sale of mobile devices based on iOS and Android soared in the first half of this year, according to Piper Jaffray.
RIM's Torch and Storm touchscreen offerings currently lack the same key features of the iPhone and Android, but these hardware shortcomings aren't the only reason why RIM's sales have stalled. "I think it could equally be attributed to hardware features as well as the weaker app ecosystem," Murphy said.
Source: http://us.rd.yahoo.com/dailynews/rss/software/*http%3A//news.yahoo.com/s/nf/20110715/tc_nf/79378
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