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iPhone Takes the Enterprise? Bet On It.

By Tim Beyers – Updated Nov 11, 2016 at 6:18PM

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A different Fool, a different view: The Mac attack has only just begun.

So, Dave Mock has a point in his article from yesterday. Two, actually:

  1. Enterprises won't adopt Apple's (NASDAQ:AAPL) iPhone just because it is a hit with consumers.
  2. IT managers, who loathe change, have no specific financial reason to replace existing devices with the iPhone.

Touche, sir.

Not that I'm surprised. I've never known Dave to be anything less than whip-smart. On this topic he's right, in that when you get IT managers alone, they'll tell you that budget planning is entirely pain-driven. Spend the cash where you're hurting most, the thinking goes.

What this means is that corporate technology buyers never, ever seek The Next Big Thing. Rather, they prefer The Next Thing That's Not Going to Get Me Fired. Apple is too rebellious for this crowd. Or at least it was.

Let's review what we know about the latest iPhone and Apple's direction.

First, while it's true that, here in the U.S., you must be an AT&T (NYSE:T) customer to use an iPhone, there's ample evidence that Apple wants to give you more options. Second, faster 3G service creates more opportunity for iPhone users who like doing business on the go. Third, a lower price and support for Exchange is designed to appeal to cost-conscious corporate buyers who prefer not to disrupt the IT infrastructure they've built.

And finally, we know that users, investors, and partners see the iPhone in a broader context than they do smartphones from Research In Motion (NASDAQ:RIMM), Nokia (NYSE:NOK), and Palm (NASDAQ:PALM). They view it as a platform for business.

NetSuite (NYSE:N), for example, initiated support for its online business software via Safari when the iPhone was first introduced. Legendary venture capitalist Kleiner Perkins Caulfield and Byers has a $100 million iFund to encourage developers to write software for the device.

My point? Innovation is the only constant in tech. So even though corporate buyers have no urgent reason to switch to the iPhone, it's almost certain that an enterprising developer will create one.

But that will take years. In the meantime, the iPhone will catch on at corporations for the same reason that other popular mobile devices did -- because executives and employees bring them to work.

Brrrrrrrrring! It's related Foolishness calling:

None

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Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
AAPL
$150.77 (0.23%) $0.34
Nokia Corporation Stock Quote
Nokia Corporation
NOK
$4.24 (-0.47%) $0.02
AT&T Inc. Stock Quote
AT&T Inc.
T
$15.67 (-2.12%) $0.34
BlackBerry Stock Quote
BlackBerry
BB
$4.97 (-1.97%) $0.10
NetSuite Inc. Stock Quote
NetSuite Inc.
N
Palm, Inc. Stock Quote
Palm, Inc.
PALM

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