Apple, IBM give up 30-year rivalry to work together on iPhone, iPad software

July 15
technology
IBM, Apple to team on business apps

Apple and International Business Machines will work together to create business software for iPhone and iPad users, setting aside a three-decade-old rivalry to cater to an increasingly mobile workforce.

IBM’s staff will sell Apple devices to its business customers, and the two companies will work together to develop applications tailored to work with IBM’s data analytics and cloud services, the companies said Tuesday. Apple also will offer customer-service support for the apps.

The partnership helps Apple pursue a bigger slice of the market for corporate users of smartphones and tablets. Working with its erstwhile foe also may help IBM chase other technology giants — including Apple — that have done a better job seizing on the mobile-computing boom.

With the deal, Apple gains a large sales force that will push its mobile devices to companies, while IBM, whose sales have been stagnating, adds the cachet of being partners with one of the best-known and most popular consumer-electronics brands.

“We really recognized almost simultaneously that we could be uniquely helpful to one another’s strategy and that there was literally no overlap,” Bridget Van Kralingen, IBM’s senior vice president of global business services, said in an interview. “It’s moved incredibly quickly and smoothly.”

The partnership, which was six months in the making, will offer services geared at security, mobile device management and big data and analytics. More than 100 apps targeting industry-specific issues in retail, health care, banking, travel, transportation and telecommunications will be released, IBM said.

Bloomberg News

IPO
Alibaba lessens sale demands on Yahoo

Yahoo said it has to sell fewer Alibaba Group shares than previously expected in the Chinese e-commerce company’s market debut, helping to offset the U.S. company’s worse-than-expected results Tuesday.

Shares of Yahoo rose 10 cents to $35.75 in after-hours trading.

Yahoo said Alibaba has agreed to its request to reduce the maximum number of shares it sells in the Chinese company’s upcoming initial public offering from 208 million to 140 million.

Yahoo owns a roughly 24 percent stake in Alibaba, which is expected to list its shares on the New York Stock Exchange later this year in what could be the largest-ever U.S. technology IPO.

Yahoo’s net revenue, which excludes fees paid to partner Web sites, decreased 3 percent year-on-year to $1.04 billion in the three months ended June 30. Analysts were looking for net revenue of $1.084 billion.

Reuters

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