The distribution business was slightly weak despite good like-for-like store sales, due to the lower quality ‘off-the-page’ newspaper advertisement business being successfully cut back by the mobile operators
Apple has at least revolutionised two aspects of the mobile business: getting customers to queue overnight for a handset, and selling ‘contracts-in-a-box’, neither of which are likely to catch on in Europe
The distribution business had a strong year, marred by a longer than usual Christmas hangover in the last quarter, but the early signs for the new financial year are promising
iPod revenue (quarterly, year-on-year) declined for the first time. Even though unit sales were up 24% year-on-year, the average iPod price was down 20%. Apple group revenue growth is increasingly dependent on Mac sales and new product launches, like Apple TV (March 2007) and the iPhone (in June 2007)
DMGT’s recent upbeat trading update showed improvements on the hefty declines in advertising of 2005 and 2006. At least part of the lift is thanks to DMGT’s national titles gaining share from other mid market and quality titles, and we are discounting a general print advertising recovery
UK broadband market growth fell to 3.2 million net additions in 2006 from 3.8 million in 2005. With 47% of UK households already on broadband, new entrant unbundlers (BSkyB and Carphone Warehouse) are racing against the clock of a maturing market to sign up customers
iPod volumes hit a record 21.1 million units sold in the key Christmas quarter, but year-over-year quarterly revenue growth declined again to 18% (from 29%) due to lower prices for all iPods and consumers’ drift to low priced flash memory based players (iPod Shuffle). Apple’s push on the iPhone limits the iPod’s future development and hence this segment’s future revenue growth
Carphone Warehouse’s core distribution business was firm, showing no signs of being harmed by Vodafone withdrawing its new contract business in the UK
Apple has introduced its long-awaited iPhone, with sleek looks and a host of innovative touches, to be launched in the US exclusively with Cingular in June and Europe by the end of 2007