Can New Apple iPads Match Google in the Classroom?

As the FAANG tech titans begin to encroach into each other's markets and become more fiercely pitted against one another in industries such as advertising, smart homes and entertainment, Apple Inc. (AAPL) and Alphabet Inc. (GOOGL) are now scrambling to grab share of the education industry. 

While Apple's newly launched education products may be more expensive than lower-end options from Google, some industry insiders see the potential for Apple to gain on the market leader, as outlined in an CNBC story published Wednesday. (See also: Apple Working on Foldable iPhone for 2020: BofA.)

On Tuesday, Cupertino, California-based Apple came out with a $299 iPad, set to compete against Google's market leading Chromebook. The Chrome operating system now accounts for nearly 60% of mobile computing shipments to schools, according to Futuresource Consulting, reported by CNBC. The smartphone maker also announced a new suite of software for classrooms as it looks to double down on its software and services businesses in order to boost recurring revenue streams and wean reliance off demand for its hardware. 

While the iPad often receives a direct comparison to Chromebook, different products could serve some age groups better than others, suggested Loup Ventures' Gene Munster. He indicated that iPads are the strongest in kindergarten through fifth grade, while Chromebooks are preferred among older students. "We believe Apple and iPad are uniquely positioned toward creativity, while Chromebooks are better positioned for the utilitarian aspect of education," said Munster. (See also: Apple Needs to Lower Average Selling Prices: RBC.)

A More Comprehensive Platform

Alphabet first made a major push into the education space about five years back, targeting teachers first as a hedge against rivals Microsoft Inc. (MSFT) and Apple, who had a lead in schools. The Mountain View, California-based firm now offers its Chromebook alongside other products such as Google Expeditions, which offers virtual reality and augmented reality-powered field-trip-style content; G Suite for Education, with tools such as email and document processing; and Google Classroom, a dashboard for teachers. 

Larry O'Connor, the CEO of Other World Computing, a provider of services for Mac users, foresees Apple succeeding with its education push in overseas markets such as Europe and China, the latter being one he says Google hardly has a foothold and Apple's iPads sell very well. 

"There will always be lower cost options—but it is the entire platform, available software and apps, management of the deployed hardware and software, security (virus/malware considerations included), and the time for this support and uptime of solutions where Apple is hard to beat," said O'Connor to CNBC. 

Dean Hager, leader of Jamf, another firm that helps schools manage Apple tech, highlighted privacy benefits and compatibility with popular devices like Apple TV, as a drivers of Apple's gains. He indicated that his company adds 1,000 to 1,5000 new schools to its Apple customer base annually.   

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