Around 125m smartphones were sold globally in Q2, up over 30% from Q2 2011. Around 450m mobile handsets were sold in the quarter, giving smartphones a volume share of around 28% Apple and Android dominate with a combined of 85% of units sold, and a cumulative total of 810m devices running their mobile platforms. Of these we estimate that 680m are active, of which 95m are tablets Android arrived later and has grown faster, but Apple’s market share of smartphones as been steady at 20-25% for several years: Android’s growth has come at the expense of Nokia, RIM and feature phones
In this report we show the findings of our 2012 UK mobile user survey. The report is a wide ranging analysis of the mobile market based on our consumer research, focusing on the competitive landscape among the mobile operators and smartphone manufacturers, and the changing consumer behaviour that has and will continue to impact the market
In this report we show our analysis of trends in UK broadband and telephony to March 2012, based on the published results of the major service providers.
Highlights for the March quarter include broadband subscriptions exceeding 21 million, a sudden uptick in broadband market net additions and local loop unbundling accounting for a record 40% of broadband subscriptions. The proportion of unbundled lines that are fully unbundled exceeded two thirds for the first time.
This quarter we also include a look at pricing, including prices for high speed broadband that show how BT Retail is using high speed broadband to reduce the price advantage of its competitors.
Vodafone’s proposed acquisition of Cable & Wireless Worldwide is far from a done deal and is unlikely to be completed until September
The cost synergies are real but likely slim, with the main rationale being to cost effectively expand Vodafone’s fixed enterprise business in the UK, and to gain the expertise to do this elsewhere
The impact of an acquisition, while gradual, would reverberate for years to come. Wireline wholesalers, then corporate service retailers would be affected, notably BT. Later, the impact could spread to the small business segment. The prospect of Vodafone’s re-entry into the UK residential wireline market would remain distant but more likely
Mobile operators, services and handset makers are diverging – they all come to the MWC but have increasingly little to say to each other as their businesses move in very different directions
In the context of -5% European mobile revenue growth, the MNOs at the MWC were a sober bunch, focusing on industrial services, defensive moves around messaging, and a (not unreasonable) plea to regulators for some relief
As competition in Android intensifies between hundreds of black plastic rectangles, the picture for OEMs looks tough but Google’s failure to make Android work well for developers may also start to bite, leaving an opening for Nokia and Windows Phone
We forecast print media advertising will be down by about 4% in 2012, with national newspaper display roughly flat, performances we envisage will be seen as a temporary reprieve once the substantially tougher 2013 that we expect to follow is underway
Print media is not out of the structural woods, and even relatively small revenue contraction will amplify pain as the opportunities for further streamlining fixed-cost physical distribution operations are realistically diminishing
Digital is a greater challenge for paper than for screen media, as consumer and advertiser demand continues to weaken, yet publishers struggle to generate the killer service solution to stimulate scale revenue online
In this presentation we show our analysis of trends in UK broadband and telephony to December 2011, based on the published results of the major service providers.
Highlights for the December quarter include a return to the lower rate of broadband market growth seen prior to mid-2010, accelerating growth in the number of subscribers to high speed broadband and the continuing increase in market share of BT Retail and BSkyB at the expense of virtually all other players
This quarter’s edition includes a look at Openreach’s wholesale FTTP On Demand, planned for launch in 2013.
Following announcements by Virgin Media to double the speeds used by most cable customers, and by BSkyB to launch high speed broadband offer in April based on Openreach’s wholesale VDSL product, by 2016 we now expect about half of UK residential broadband subscribers to be on high speed broadband, i.e. xDSL or GPON at 30 Mbit/s plus, and DOCSIS at 20 Mbit/s plus
Cable & Wireless Worldwide’s new CEO Gavin Darby has outlined a turnaround strategy for a business which is not performing that badly in context, against the backdrop of Vodafone considering a bid to buy the company
Mr Darby’s strategy is yet to be finalised, but in outline contains lots of initiatives which are good in theory but hard to implement in practice, especially in a weak macroeconomic climate, in the face of intense competition
Integrating Vodafone UK’s mobile wireline backhaul and core networks with C&W WW’s UK network would yield slim synergies, as the most expensive part of Vodafone’s wireline network has little overlap with that of C&W WW
We think that Vodafone is more likely to be interested in using C&W WW to help sell integrated fixed-mobile products to corporate customers, and, to a lesser extent, SMEs. Whether the benefits will outweigh the significant integration headaches is something only Vodafone can decide
Enders Analysis co-hosted its annual conference, in conjunction with BNP Paribas and Deloitte, in London on 19 January 2012. The event featured talks by 13 of the most influential figures in media and telecoms, and was chaired by Sir Peter Bazalgette. An edited transcript of notes taken during the speaker presentations follows.
The speakers were Sir Martin Sorrell (CEO, WPP), Glen Moreno (Chairman, Pearson), Martin Morgan (CEO, DMGT), David Levin (CEO, UBM), Dan Cobley (MD, Google UK & Ireland), Mike Pocock (CEO, Yell), Vittorio Colao (CEO, Vodafone), Charles Dunstone (Chairman, Carphone Warehouse, TalkTalk Group), Stephen Carter (President, Alcatel-Lucent EMEA), the Rt. Hon. Jeremy Hunt MP (Secretary of State for Culture, Olympics, Media and Sport), Neil Berkett (CEO, Virgin Media), Liv Garfield (CEO, Openreach) and Ed Richards (CEO, Ofcom).
Cable &Wireless Worldwide’s performance for the six months to September was weak but made to look worse by one-offs
Underlying performance continues to be hit by strong competition and loss of voice revenue, but the impact of this has been made worse by underinvestment in data centres and neglect of the wholesale and SME businesses
The outlook for the year to March 2012 is poor, in line with the June warning. Beyond that, further investment in hosting and related capabilities will be necessary, and we continue to expect modest growth