Alphabet Inc (NASDAQ:GOOG)’s Chromebook Rise To Account For 50% of U.S. School Device Sales


Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) is displacing Apple Inc. (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT) from U.S. education device budgets. It turns out that Chromebook, the laptops that run Chrome OS, accounted for over 50% of education device sales to U.S. schools in the last quarter. That reflects a massive jump in market share considering that Chromebooks accounted for less than 1% of U.S. school device sales in the same quarter in 2012.

As Alphabet Inc (NASDAQ:GOOG)’s Chromebooks take more share of U.S. school district spending on education devices, Apple appears to be taking the heat. Chromesbooks appear to be growing popular in U.S. schools at the expense of Apple’s iPads and Microsoft’s Windows PCs.

For Alphabet, multiple factors have been noted to favor its penetration of school budgets for computers.

Affordability

Alphabet’s Chromebooks are displacing iPads and Windows PCs from school budgets because they are more affordable than alternatives. For U.S. school districts that typically operate on tight budgets, cost-saving opportunity is an important factor in deciding which computer devices to purchase for students.

Productivity designed

Laptops that run on Alphabet’s Chrome OS are also said to be better suited for school-level productivity needs than the competition, thus their rapid filtration of school budgets.

From 1% to over 50%

As such, the low starting price and productivity features of Chromebooks appear to fuel the uptake of Chromebooks by schools. According to Futuresource, Chromebooks contributed more than 50% of all education devices sold to U.S. schools in 3Q2015. That compares with 40% of Chromebook market share in the same quarter last year and less than 1% in the same quarter in 2012.

Competition

However, there is doubt as to whether Chromebooks can sustain their lead in U.S. school computer budgets. Microsoft with its 2-in-1 Windows laptops is particularly seen as a threat to Alphabet Inc (NASDAQ:GOOG)’s Chromebooks in the school system.

Moreover, claims that Alphabet Inc (NASDAQ:GOOG) is collecting data on students through its Chromebooks could also dent penetration of the Chromebook laptops in schools, not only in the U.S. but also abroad.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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