“Apple Inc. won a $30-million contract Tuesday from the L.A. Unified School District, paving the way for the company to provide every student with an iPad in the nation’s second-largest school system,” Howard Blume reports for The Los Angeles Times. “The Board of Education voted 6 to 0 on Tuesday to approve the contract after hearing senior staff laud Apple’s product as both the best in quality and the least expensive option that met the district’s specifications.”
“Tuesday’s vote authorized an iPad rollout at 47 campuses,” Blume reports. “However, by choosing Apple as the sole vendor, the district also made a de facto commitment to spend hundreds of millions of dollars with the Cupertino, Calif.-based digital giant over the next two years.”
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Blume reports, “The tablet computer by Apple “received the highest scoring by the students and the teachers,” who took part in testing different devices, said Deputy Supt. Jaime Aquino… ‘I can sleep tonight with my conscience clear,’ Aquino responded, ‘that you did the right thing for kids.'”
Read more in the full article here.
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Meanwhile, Microsoft dump loads of Surface RTs onto schools in a pitiful attempt to remain relevant. You can’t make this stuff up 🙂
=:~)
I want to know how someone makes HUNDREDS of millions on a contract in the low TENS of millions.
Must be that “new” math everyone was wild about a while back.
“Tuesday’s vote authorized an iPad rollout at 47 campuses,” Blume reports. “However, by choosing Apple as the sole vendor, the district also made a de facto commitment to spend hundreds of millions of dollars with the Cupertino, Calif.-based digital giant over the next two years.”
The headline here clearly states Apple stands to ‘make’ hundreds of millions. LA times states ‘spend’ so unless there is 100% margin MDN being a little liberal with the truth.
Btw, love the fact that they are paying $678 when new available from bestbuy at $399. (Yes, I know it comes with software).
Nice deal Apple and its also great the AAPL share holders on the education board declined to vote, I’m sure they had no influence.
YOU MUST BE A SCHOOL DROPOUT. YOU HAVE TO READ TO LEARN.
It’s not okay to question what we’ve read? Oh… I forgot where I was.
Thinking? Thinking? Why think for yourself when someone else can think for you?
Schools seem to be in the business of teaching you ‘what’ to think instead of ‘how’ to think.
Apple is in business to make money. They are doing what they are supposed to do. On he other hand, M$ is trying to lose money.
Well Microsoft have to something with their cash pile. Might as well flush it down the khasi for all the good it does them.
It truly makes me weep to see all that engineering talent that Microsoft undoubtedly has pissed away by the utter incompetence of their management.
Shameful!
=:~)
Absolutely. Talent, no matter where it is located, should never be wasted. And there must be lots of talent at Microsoft just as there is at all other large tech companies. Shameful indeed.
I agree. The tragedy of M$ is the incredible squandering of talent that surely must exist, suffocating under the hubris and blind stupidity of Balmer and his cronies in management. And at the top is Gates. One wonders if it would ever be possible for that talent to rise up and overthrow the leadership cancer that will surely kill Microsoft; the alternative is the plight of Blackberry.
On a similar note, I strongly suspect that Intel’s chip improvements would never have happened without Apple disgracing them.
Good point about MS and about intel. The improvement in their laptop chip is a direct result of the threat that they are under from ARM due to the iPhone.
I keep hearing of miracles performed by iPad with down kids, autistics, that senator that was shot in the head and learn to communicate using an iPad, even gorillas, cats and orcas can use it..
Imagine what it can do for a sane student / teacher.
I have never hear from such thing from a a windows or android tablet.
That’s because “real work” is being done on them
using Surface will make you autistic. click.
In all businesses, the up and down in business is normal, some day is a good day and some day is not. AAPL is not very good right now but in Q3 and Q4 who knows?. 🙂
Profits don’t matter.
LOL
I live in L.A. and my grandkids will benefit and I couldn’t be happier. So much better an outcome then when stupid school boards with idiot buyers go along with things like “Dell deals.” That’s no deal, it’s an albatross with expensive support costs.
One question, does Apple provide a way to remotely administer hundreds of iPads with upgrades, etc.?
iOS 7 has auto app upgrades.
and with this great news,news that is the beginning of a LOT of Educational sales @ a sweet premium,AAPL is down just over 2%…
Remember North Carolina? How long will it be before Microsoft (or Samsung) sues the school board over this decision?
Them rednecks will go for the cheapest pretty soon. Damn liberal commie California company will be outed soon.
How does Apple “stand to make ‘hundreds of millions'” on a 30-million deal? I guess I have to read the article to find out. Poor title/summary, MDN!
“Tuesday’s vote authorized an iPad rollout at 47 campuses,” Blume reports. “However, by choosing Apple as the sole vendor, the district also made a de facto commitment to spend hundreds of millions of dollars with the Cupertino, Calif.-based digital giant over the next two years.”
YOU MUST BE A SCHOOL DROPOUT. YOU HAVE TO READ TO LEARN.
You must be a college drop out sice you never learned to scrutinize your sources. “Hundred of millions” was obviously the conclusion of some English major, and anyone with fourth grade math skills would be wise to question.
Does anyone know or speculate what kind of kid resistant ipad case will be used? Recommendations, anyone? Seriously, don’t anyone suggest “Surface” or paper grocery bags;) thanks!
How $30 million becomes “hundreds of millions” presimably in profits (i.e. “makes”) would be a neat trick to know.
Like a apple flavored tidal wave washes over LA. Washing away MS scum.
For the reading- and math-challenged who can’t figure out how “$30 million becomes ‘hundreds of millions'”, let me do the reading for you and explain in short, easy words.
The initial, $30 million contract, is for a rollout at 47 LAUSD campuses. Some of that $30 million will undoubtedly be for district-wide infrastructure expenses, so we’ll try to take that into account.
LAUSD has 1,124 campuses. That’s almost 24 TIMES the number of campuses that the initial rollout covers. To account for the infrastructure, however, let’s just say 20 times, OK?
20 times $30 million = $600 million, which by any standard is “hundreds of millions” of dollars.
Everyone clear now?
They have approx. 650,000 kids. According to Forbes Apple’s gross margin is between 23-32% on iPads. Assuming they discounted a touch to get the deal done lets call it 25%. They also have to replace 5% of dropped/broken iPads.
So, $100 per ipad is $65 million. Reserve $9.75M for breakage (5%, $300).
Basically $50M deal. Nice in anyone’s book, plus getting students used to iOS.
Only issue I see is under monopoly rules, will Apple have to 3rd party iOS to keep competition open for the next few rounds?