Hello everyone.

As is often the case, a recent news event opened the door to a discussion that didn’t quite fit in with the prior news cycle. Yesterday, we talked about the new Apple Pencil (USB-C). This led to a broader look at the iPad. Back in late August, a WSJ article about Chromebooks appeared on my radar. It’s a great time to look back at that article in context of Apple’s iPad strategy. The discussion includes a look at iPad unit sales trends and Apple’s evolving iPad strategy for education.

Let’s jump right in.

Schools Begin to Question Chromebooks

Here’s the WSJ’s Nicole Nguyen:

“Low-price, easy-to-use Chromebooks were once a boon to cost-conscious schools. Educators say the simple laptops are no longer a good deal.

Models have shot up in price in the past four years. Constant repairs add to the cost. Google imposes expiration dates, even if the hardware still works. This year, Google ceases support for 13 models. Next year, 51 models will expire.

These surging costs are presenting a predicament for anyone who runs a school and wants to educate children. Some administrators say they are throwing precious funding at a product that just doesn’t last long enough. Doubling the lifespan of Chromebooks could save public schools—and taxpayers—an estimated $1.8 billion, according to U.S. PIRG, a public-interest research group that analyzed Chromebook data.

Chromebooks have no second life. When they expire, they become e-waste. By contrast, Macs and PCs can run apps even after their native software is no longer supported. They can even be repurposed into Chromebook-like devices.”

While the article was filled with anecdotes, the broader thesis regarding rising costs associated with Chromebooks usage over time rings true. In the face of higher inflation and interest rates, there has been a broader move across the industry to place greater emphasis on a device’s longevity and residual value. It’s been a key focus area for Apple as better device durability and longevity lead to higher customer satisfaction and loyalty, even if it means less frequent upgrading.

Concerns involving rising cost of ownership and inadequate device longevity would represent the first kind of pushback against Chromebooks that actually has some legs. There are a few factors at play here.

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