Audiovisual advertising blues 2007
Television advertising revenues fell by nearly 7% and radio advertising by more than 4% in 2006 according to latest market estimates. We expect declines of around 4% for both media in 2007
|TV, Media, Music and Radio||4 January 2007|
Article 50 triggers Brexit in 2019
The UK intends to exit the EU on 29 March 2019 and will submit the hoped-for agreement on a new strategic partnership with the EU to a vote in Parliament
The EU and the UK agree to seek an early settlement on the rights of 4 million nationals and the Irish border. Incentives diverge on the size of the UK’s Brexit bill
Unless a withdrawal agreement is reached, the EU will balk at starting talks on the UK’s desired free trade agreement (FTA), making a hard Brexit more likely than not
|Brexit, Media||30 March 2017|
Apple’s results, the iPhone and Android
Apple is now a $108bn company, with annual revenue up 66% from a year ago and 40% gross margins. September quarter iPhone sales dipped to 17m ahead of a new product launch, but Apple still sold 72m in the last 12m, compared to 40m in the 12m to September 2010
Apple has now sold 40m iPads for $20.3bn revenue, and 11m in the last quarter. All other competing devices have sold perhaps 4m. We expect Apple’s dominance to continue through 2012 and potentially beyond
Google’s Android sold even more smartphones than Apple, activating 150m in the last 12m and 55m in the September quarter. Yet in October Apple sold 4m of the new iPhone 4S in just three days, bringing in around $2.6bn: Google’s annual run-rate mobile revenue is now $2.5bn
|Mobile, Telecoms, Technology, Media||19 October 2011|
Apple’s iPods: reaching maturity?
Apple revealed an updated iPod range to stimulate demand in the run up to the all important Christmas quarter, when iPod revenues typically account for 50% of Apple’s totals
|Media, Music and Radio||9 September 2007|
Apple: The power of music
Apple’s hardware-driven strategy for music recently passed two major milestones, with 10 billion paid track downloads and 250 million iPods sold
In 2009, Apple ‘returned’ to record labels and publishers roughly $1.9 billion, while generating gross profits in the region of $3.2 billion from the sale of iPods and music
Of wider significance to Apple is the music strategy’s contribution to building a mass market brand and expanding its customer base, helping to drive adoption of their computers and, more recently, the iPhone
|Music and Radio, Media||3 March 2010|
Apple: everything going right?
In the March 2011 quarter Apple’s revenue was up 83% year-on-year and net income up 95%. iPhone sales are up 113% and the iPad has sold 19.5m units in the last 12 months. Even the ‘legacy’ Mac business grew 32%, and Apple now has over $65bn cash in the bank. Not bad for a niche business
With single digit penetration in its core growth businesses, Apple has the opportunity to continue growing fast for some time to come
The threat from Google’s Android is real but limited: we expect Android to take a large part of the mid range phone market but that Apple will retain and extend its competitive advantage for tablets and high end phones
|Mobile, Telecoms, Media||12 May 2011|
Apple: ecosystem upgrade
Apple has upgraded its iPod family and also iTunes, which now includes new social networking features, and revamped Apple TV, now reinvented as a streaming-only device at a fraction of its former price
We expect iPod sales volumes to continue to slide despite the update, but estimate that improved ARPU will add $600 million to Apple’s topline in FY2011. However, iPhones and Macs are the company’s key revenue drivers
The revisions to Apple TV should drive up sales, but the content offering remains weak (especially outside the US) and it is joining an already crowded playing field – its main benefit is likely to be supporting the Apple ecosystem
|Media||5 September 2010|
Apple, television and disruption
The Apple rumour mill turns to television, with widespread speculation that Apple will shortly announce… something, that will offer a different approach to the TV experience.
However, if Apple distributes TV content in new ways, it will need to work with existing channels and often pay providers, who are unlikely to enable fundamental disruption to their business models.
We see plenty of scope for Apple to make a great TV product – which need not necessarily be an actual television. But we see far less scope for it to break apart the value chain of TV content – and Apple doesn’t need to
|Fixed Line, Telecoms, TV, Media||5 June 2012|
Apple, Samsung, Patents and Android
A US jury has found Samsung infringed Apple’s patents with Android products and awarded $1bn damages. This is 17% of Samsung’s Q2 operating profit and would be crippling to any other Android OEM: it sends ripples of uncertainty through the ecosystem.
We expect the verdict to accelerate IP licensing between Apple and other Android OEMs, with Apple (like Nokia and other IP holders) levying a fee per device, though Google’s ownership of Motorola may mitigate this somewhat.
However, major changes in the Android proposition are unlikely to be necessary, and as long as the iPhone ASP is $650 and Android is $300 or below, market share is unlikely to shift much. Absent a cheaper iPhone, Android will continue to outsell iPhone 3:1 at much lower prices, especially outside the USA.
|Technology, Telecoms||30 August 2012|
Apple, price and market share
Apple’s numbers have got so good they’re bad: after growing at over 50% for two years, relative revenue growth has, inevitably, slowed. The products remain very strong, and direct competitors continue to have little impact. (Apple’s mobile phone market share has never been higher, for example.) However, the premium phone market itself, which the iPhone dominates, is at a potential tipping point.
|Mobile, Telecoms, Technology, Media||28 April 2013|
Apple, Android and tablet market share
Apple has now sold 25m iPads since launch, worth $15bn, and will probably sell 40-50m in 2011. Competing tablets have sold perhaps 2-3m in total so far and will not be competitive with the iPad until 2012 at the earliest
Android phones are now far outselling iPhones, but benefit from a narrower user experience gap and from selling at a half of the price. Android tablets must compete with the iPad at the same or higher price points, a far harder task. We believe it is possible the iPad will retain a 50%+ share
Media companies have veered from euphoria to outrage when contemplating the iPad and its autocratic creator. Android offers them little chance of either in the near future
|Mobile, Telecoms, Technology, Media||13 July 2011|
Apple, Amazon and digital reading
The ebook market has broken out of its niche. Just 3% of the US consumer books market in 2009, ebooks are on track to hit 10% this year, with the UK following close behind. With global consumer books a $120 billion industry, disruption will have dramatic consequences
Amazon has sold perhaps 3-5m Kindles in 33 months – Apple sold 3m iPads in the first three months and 3m of the iPhone 4 in the first three weeks. Amazon might look as though it is on the back foot, but as this week’s £109 Kindle shows, the game isn’t over yet
We expect the ebook market to splinter, with tablets, ereaders and smartphones all playing important parts for different genres and demographics. This makes control of the Kindle platform a key advantage for Amazon
|Media||28 July 2010|
Apple's iPhone bargain
More attractively priced than previous entry level iPhones, the new SE extends Apple’s smartphone lineup down towards the mid-price segment to better compete with Android over price-sensitive users
At a time of investor concern over slowing down iPhone unit sales, the SE marks the first shift in Apple’s strategic calculus for the iPhone from gross margins to unit volumes
SE supports the iOS ecosystem in a crucial period of growth for mobile payment services, making the entire iPhone roster Apple Pay compatible
|Internet, Media, Mobile, Technology||23 March 2016|
Apple's iPhone advantage
Apple’s results underlined its status as the tech industry’s biggest and most profitable company due to the iPhone, accounting for two thirds of the company’s revenue and capturing three quarters of all smartphone profits
While the iPhone dominates the $500+ handset market, the question is how will this segment develop as smartphone penetration approaches maturity in developed markets and mobile operators restructure handset subsidies
The shift to separate airtime and device plans could increase consumer price sensitivity, but leasing plans with annual replacement, supported by the iPhone’s strong second hand value, bring the opportunity of faster replacement cycles, with upside and downside risks matched
|Non-UK Telecoms, Internet, Media, Mobile, Technology, Telecoms||9 November 2015|
Apple Watch: the next must-have device?
Apple has provided more details on its smartwatch range, on sale from April, priced between $350-$17,000 to appeal to a wide range of would-be buyers and initially focusing on enhancing the iPhone through added convenience.
The Watch is likely to develop quickly in the next few years, and has the potential to become an indispensable tool for managing payments, health data and identity, as well as controlling other connected devices.
The company is laying the foundations for Watch to become a must-have device, but the case is still to be made and ultimately its success depends on a number of key groups and factors outside Apple’s control.
|Mobile, Telecoms, Technology, Internet, Media||16 March 2015|
Apple updates the ecosystem, spurning Google
Apple has announced the features of the next version of iOS, the platform that runs the iPhone, iPad and iPod Touch. Key steps includes the replacement of Google Maps with Apple’s own mapping service, Facebook integration and expanded features for the Chinese market.
By replacing Google Maps, and in numerous smaller ways, Apple is starting to direct its users away from Google: a key theme across many new features is moving search and discovery away from raw web search.
Apple also announced a solid refresh of its laptop line (though the Mac business is now only 13% of revenues) and did not announce a new television product, despite frantic rumours that it would.
|Mobile, Telecoms, Technology||17 June 2012|
Apple TV in the UK
Apple has now launched downloads of 28 US TV series in the UK, hoping to drive demand for portable video watching on iPod or for home viewing via Apple TV
|Media, TV||27 August 2007|
Apple takes the high road
Apple’s two new iPhones both secure its grip on the high end (for now) and extend a cautious toe into (slightly) cheaper waters. They will not deliver a step change in global sales growth, but should deliver solid performance
9m unit sales at launch are impressive, but 200m updates to iOS 7 (double last year’s figure) point to the continuing strength of Apple’s ecosystem and its ability to deploy innovative new features
We continue to believe there is room in Apple’s portfolio for a $350-$450 phone without weakening Apple’s quality of experience or brand positioning, but this is clearly now off the agenda for another year
|Mobile, Telecoms, Technology, Internet, Media||20 October 2013|
Apple Special Event 2016: a photo finish
Apple’s hardware progress at this year’s Special Event was more impressive than the software announcements at WWDC in June, though not at the level seen during the bumper launch of the iPhone 6
Improvements in camera technology and custom chips are preparing the iPhone for more drastic design changes and new location-based service categories in the future
Next year, faster development of both software and hardware is required to defend iPhone margins or user base growth, let alone both
|Mobile, Technology, Telecoms||12 September 2016|
Apple rewrites the textbook
Apple has begun selling interactive textbooks via its iBookstore, a move which is likely to accelerate the digital transition in education
However, the pace of change will be slowed by the cost of devices and the limited number of textbooks that have been designed for tablet computers
By developing educational software and course materials, Apple is trying to position the iPad at the centre of students’ educational lives – a niche that could significantly boost its hardware sales
|Media, Technology||30 January 2012|