Apple refreshes the iPhone

5 October 2011

Apple will release the iPhone 4S later this month, with substantially upgraded internals but the same design. Despite disappointment at the lack of something with a ‘5’ on the box, this is a solid update that maintains Apple’s competitive positioning

The most significant omission was a lower-priced iPhone. Apple sells the 3GS and now the 4 at lower prices, but lacks a dedicated device to address the sub $300 (SIM-free) market where most future growth will come from. We think this is only a matter of time

Apple’s new ‘Siri’ voice assistant looks very impressive as a USP. If it works, and spreads, it will join apps as a structural problem for Google, drawing people away from web search

Recent reports

ITV Q1 2024 results: Advertising looking up as Studios fights headwinds

9 May 2024

A drop in Studios' revenue—attributed to phasing of content deliveries and strikes— saw ITV's external revenue down 6% to £727 million in Q1. An improvement in advertising could not offset this drop but H2 will be better for production and see Studios flat for FY 2024

After big launch momentum, the growth of ITVX appears to be slowing, while the service's release strategy continues to evolve

ITV’s total advertising revenue (TAR) was up 3% in Q1 to £432 million (2023: £419 million). H1 is forecast to be up 8%, with Q2 up 12%, buoyed by the Euros which start in June

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Revenues revert: Pricing conundrum in UK telecoms

9 May 2024

In-contract price increases have been the worst of all worlds—reputationally damaging for telecoms operators but contributing (temporary) revenue growth of just half the rate of inflation. We expect the revenue boost from in-contract price increases of 5% last year to become a 2% drag from Q2 2024.

Cost inflation is, however, cumulative with an acceleration in the gulf between costs and revenues forecast from here. We expect muted financial guidance for 2024/25 from BT Consumer and Vodafone UK over the coming weeks.

Rising new-customer pricing is a necessity if margins are not to be significantly squeezed, but competitive intensity and scale economics continue to thwart such efforts, with no real resolution in sight.

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Virgin Media O2: Tough start to a tough year

8 May 2024

VMO2 had a tough start to a tough year in Q1, with revenue growth dipping to -4% and EBITDA to -2%, and both fixed subscriber and contract mobile subscriber net adds negative.

Trends are unlikely to improve in the short term, with the fixed side suffering from full fibre overbuild and the mobile side struggling to replace its formerly unique Custom Plan offers.

There are however longer term upsides on fixed in particular, with network and service upgrades bringing sub-brand and wholesaling opportunities, and the company is striving to get the magic back on mobile.

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