Around 125m smartphones and over 20m tablets were sold in Q4 2011. If tablets are included, Apple is now the largest PC manufacturer, while smartphones are now outselling PCs

These devices are the battleground for a war of ecosystems in which Apple’s iOS and Google’s Android platforms are dominant and others are hoping for third place at best. iOS and Android sold around 92m units in Q4 and now have an active base between them of around 515m devices

Samsung now accounts for at least half of Android sales and is in some senses more of a rival to Apple than Android itself

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

US album volumes in 2011 rose for the first time since 2004, but lower pricing may continue the revenue decline

UK album volumes declined 5.6% in 2011. HMV’s new-found breathing space removes a key risk for the outlook

US radio royalties to music publishers have been agreed in principle and will see a return to a revenue based payment

The launch of Netflix in the UK and Ireland has ignited the debate on the threat from over-the-top video to pay-TV services from Sky, Virgin Media and BT

Unlike in the US, Netflix’s UK prospects and those of competitors such as Lovefilm, are fundamentally limited, given the availability of low priced pay-TV with strong on-demand components included for free

The impact of Netflix on the UK pay-TV industry is therefore likely to be even smaller than the (hard to discern) effect it has had in the US