IBM is in a revenue slump. Sales have dropped and Watson itself has fallen short of company goals according to some reports.
The Apple app store reportedly generated sales of $10 billion in 2013 including $3 billion for the company and $7 billion for developers. The app and iTunes segment is one of the strongest aspects of Apple's overall business. Revenue grew over 60% from 2011 to 2013. IBM would love to achieve that level of success using Watson apps.
And Apple would love to duplicate that performance too. Growth is slowing in the consumer portion of the market so Apple might be taking a page from the IBM book and is pushing sales in the corporate world. More businesses are integrating mobile devices in operations and getting away from PC's. Expect Apple, and its devices, to be in the thick of things.
Success on TV doesn't necessarily translate to the business world, just ask IBM. However, Big Blue is betting big bucks on the supercomputer Watson to use its cognitive abilities to assist the health care, banking, and finance industries. If IBM is as successful as it was transitioning from a PC manufacturer to a business-to-business services provider, investors may benefit.
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Mark Morelli owns shares of Apple and International Business Machines. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and International Business Machines. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.