IBM shares are on the rise after the company announced an exclusive partnership with Apple (APPL) to transform enterprise mobility through a new class of business apps. In pre-market activity IBM (IBM) shares are up 2% .
The stock closed at $188.40 yesterday on slightly higher than normal volume. Apple’s stock rose 1.6% in after-hours trading following the announcement.
Under the agreement, IBM’s employees will provide on-site support and service of Apple products inside companies, much like the AppleCare service that Apple markets to consumers.
For Apple the partnership gives a push to placing the iPhone and iPad into the business world, beyond their traditional base among consumers
Apple Chief Executive Tim Cook and IBM CEO Virginia Rometty declined to comment on financial terms.
Apple and IBM engineers are working together to develop more than 100 new apps for various industries. The first of those apps are expected to be available in the fall when Apple releases the next version of its mobile software, iOS 8.
This announcement comes just days before the company will release its second quarter earnings and in a time when the company is trying to shift its focus to software as its hardware business slips. The company is hoping that software sales will provide half of their total profits for next year.
An venture like this one could have never been possible in the past, but as they say the times are a changing.
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