The UK business (EAUS) is continuing to improve ahead of guidance as expected and its turnround can now be judged a success. Management has announced an aggressive plan to extract synergy from the recently acquired Thus
In our view the potential for synergies from an acquisition of Thus by C&W, though more limited than might be supposed, would still have a significant impact on the combined entity at the EBITDA level
The much anticipated iPhone 3G is due to launch in July; it will include 3G and GPS, but will otherwise be quite similar to the old model, and is still a little off-the-pace in feature terms
International performance continued to be weak apart from Macau, although well within EBITDA guidance. Turnaround in Jamaica remains a significant challenge
The recorded music market decline continued without pause in 2007, with global sales down an estimated 11% in value. Physical and internet piracy continue to drive the CD sales decline, along with substitution to downloads, and the bankruptcies of physical retailers in the US and UK. Meanwhile, Apple’s iPod+iTunes music ecosystem continues to be favoured by customers, driving the growth of the digital music market, as ringtones stabilise globally. These recorded music market trends are reducing music publishers’ associated royalty income, although offset by rising royalties from the use of music on broadcast media, film, advertising and the internet
Powered by strong computer sales at Apple stores and surging European sales (and the weaker dollar), Apple’s dollar revenue for Q1 FY2008 rose 35% year-on-year to $9.6 billion, exceeding guidance of 29%
H3G and T-Mobile have agreed to fully share their 3G networks, with their networks being roughly doubled to a combined 13,000 sites over the next two years
International performance was hit by problems in Jamaica and was weak generally except for Panama and Macau
School’s back and strong computer sales drove Apple’s Q4 FY2007 revenue to $6.22 billion, up 28.5% year-on-year
The Apple iPhone will finally be available in the UK on 9th November, sold exclusively through Apple, O2 and Carphone Warehouse, and costing a hefty £269 when bought with a minimum £35 a month 18 month contract