Publications

Format: Feb 2020
sort descending Sector(s) Date
Apple's iPhone advantage

Apple’s results underlined its status as the tech industry’s biggest and most profitable company due to the iPhone, accounting for two thirds of the company’s revenue and capturing three quarters of all smartphone profits

While the iPhone dominates the $500+ handset market, the question is how will this segment develop as smartphone penetration approaches maturity in developed markets and mobile operators restructure handset subsidies

The shift to separate airtime and device plans could increase consumer price sensitivity, but leasing plans with annual replacement, supported by the iPhone’s strong second hand value, bring the opportunity of faster replacement cycles, with upside and downside risks matched

  • Apple
Non-UK Telecoms, Internet, Media, Mobile, Technology, Telecoms 9 November 2015
Apple's iPhone bargain

More attractively priced than previous entry level iPhones, the new SE extends Apple’s smartphone lineup down towards the mid-price segment to better compete with Android over price-sensitive users

At a time of investor concern over slowing down iPhone unit sales, the SE marks the first shift in Apple’s strategic calculus for the iPhone from gross margins to unit volumes

SE supports the iOS ecosystem in a crucial period of growth for mobile payment services, making the entire iPhone roster Apple Pay compatible

  • Apple
  • Google
Internet, Media, Mobile, Technology 23 March 2016
Apple, Amazon and digital reading

The ebook market has broken out of its niche. Just 3% of the US consumer books market in 2009, ebooks are on track to hit 10% this year, with the UK following close behind. With global consumer books a $120 billion industry, disruption will have dramatic consequences

Amazon has sold perhaps 3-5m Kindles in 33 months – Apple sold 3m iPads in the first three months and 3m of the iPhone 4 in the first three weeks. Amazon might look as though it is on the back foot, but as this week’s £109 Kindle shows, the game isn’t over yet

We expect the ebook market to splinter, with tablets, ereaders and smartphones all playing important parts for different genres and demographics. This makes control of the Kindle platform a key advantage for Amazon

  • Apple
Media 28 July 2010
Apple, Android and tablet market share

Apple has now sold 25m iPads since launch, worth $15bn, and will probably sell 40-50m in 2011. Competing tablets have sold perhaps 2-3m in total so far and will not be competitive with the iPad until 2012 at the earliest

Android phones are now far outselling iPhones, but benefit from a narrower user experience gap and from selling at a half of the price. Android tablets must compete with the iPad at the same or higher price points, a far harder task. We believe it is possible the iPad will retain a 50%+ share

Media companies have veered from euphoria to outrage when contemplating the iPad and its autocratic creator. Android offers them little chance of either in the near future

  • Google
  • Apple
Mobile, Telecoms, Technology, Media 13 July 2011
Apple, price and market share

Apple’s numbers have got so good they’re bad: after growing at over 50% for two years, relative revenue growth has, inevitably, slowed. The products remain very strong, and direct competitors continue to have little impact. (Apple’s mobile phone market share has never been higher, for example.) However, the premium phone market itself, which the iPhone dominates, is at a potential tipping point.

  • Apple
Mobile, Telecoms, Technology, Media 28 April 2013
Apple, Samsung, Patents and Android

A US jury has found Samsung infringed Apple’s patents with Android products and awarded $1bn damages. This is 17% of Samsung’s Q2 operating profit and would be crippling to any other Android OEM: it sends ripples of uncertainty through the ecosystem.

We expect the verdict to accelerate IP licensing between Apple and other Android OEMs, with Apple (like Nokia and other IP holders) levying a fee per device, though Google’s ownership of Motorola may mitigate this somewhat.

However, major changes in the Android proposition are unlikely to be necessary, and as long as the iPhone ASP is $650 and Android is $300 or below, market share is unlikely to shift much. Absent a cheaper iPhone, Android will continue to outsell iPhone 3:1 at much lower prices, especially outside the USA.

  • Google
  • Apple
Technology, Telecoms 30 August 2012
Apple, television and disruption

The Apple rumour mill turns to television, with widespread speculation that Apple will shortly announce… something, that will offer a different approach to the TV experience.

 However, if Apple distributes TV content in new ways, it will need to work with existing channels and often pay providers, who are unlikely to enable fundamental disruption to their business models.

 We see plenty of scope for Apple to make a great TV product – which need not necessarily be an actual television. But we see far less scope for it to break apart the value chain of TV content – and Apple doesn’t need to

  • Sky
  • Apple
Fixed Line, Telecoms, TV, Media 5 June 2012
Apple: ecosystem upgrade

Apple has upgraded its iPod family and also iTunes, which now includes new social networking features, and revamped Apple TV, now reinvented as a streaming-only device at a fraction of its former price

We expect iPod sales volumes to continue to slide despite the update, but estimate that improved ARPU will add $600 million to Apple’s topline in FY2011. However, iPhones and Macs are the company’s key revenue drivers

The revisions to Apple TV should drive up sales, but the content offering remains weak (especially outside the US) and it is joining an already crowded playing field – its main benefit is likely to be supporting the Apple ecosystem

 

  • Apple
Media 5 September 2010
Apple: everything going right?

In the March 2011 quarter Apple’s revenue was up 83% year-on-year and net income up 95%. iPhone sales are up 113% and the iPad has sold 19.5m units in the last 12 months. Even the ‘legacy’ Mac business grew 32%, and Apple now has over $65bn cash in the bank. Not bad for a niche business

With single digit penetration in its core growth businesses, Apple has the opportunity to continue growing fast for some time to come

The threat from Google’s Android is real but limited: we expect Android to take a large part of the mid range phone market but that Apple will retain and extend its competitive advantage for tablets and high end phones

  • Google
  • Apple
Mobile, Telecoms, Media 12 May 2011
Apple: The power of music

Apple’s hardware-driven strategy for music recently passed two major milestones, with 10 billion paid track downloads and 250 million iPods sold

In 2009, Apple ‘returned’ to record labels and publishers roughly $1.9 billion, while generating gross profits in the region of $3.2 billion from the sale of iPods and music

Of wider significance to Apple is the music strategy’s contribution to building a mass market brand and expanding its customer base, helping to drive adoption of their computers and, more recently, the iPhone

  • Apple
Music and Radio, Media 3 March 2010
Apple’s iPods: reaching maturity?

Apple revealed an updated iPod range to stimulate demand in the run up to the all important Christmas quarter, when iPod revenues typically account for 50% of Apple’s totals

  • Apple
Media, Music and Radio 9 September 2007
Apple’s results, the iPhone and Android

Apple is now a $108bn company, with annual revenue up 66% from a year ago and 40% gross margins. September quarter iPhone sales dipped to 17m ahead of a new product launch, but Apple still sold 72m in the last 12m, compared to 40m in the 12m to September 2010

Apple has now sold 40m iPads for $20.3bn revenue, and 11m in the last quarter. All other competing devices have sold perhaps 4m. We expect Apple’s dominance to continue through 2012 and potentially beyond

Google’s Android sold even more smartphones than Apple, activating 150m in the last 12m and 55m in the September quarter. Yet in October Apple sold 4m of the new iPhone 4S in just three days, bringing in around $2.6bn: Google’s annual run-rate mobile revenue is now $2.5bn

  • Google
  • Apple
Mobile, Telecoms, Technology, Media 19 October 2011
Apple’s showtime: everybody gets a service, partners get pennies

Apple is strengthening its household model by doubling down on family-friendly content subscriptions and payments

The model is reliant on hard bargains with mainly US partners, which risks sacrificing potential scale for a short-term boost in margin dollars

The new services offer glimpses of novel concepts, but stop short of taking risks to truly differentiate—a problem in TV, where Apple’s distribution advantage is slimmer than Oprah would have it

  • Apple
Media, Technology, Telecoms, TV 3 April 2019
Article 50 triggers Brexit in 2019

The UK intends to exit the EU on 29 March 2019 and will submit the hoped-for agreement on a new strategic partnership with the EU to a vote in Parliament

The EU and the UK agree to seek an early settlement on the rights of 4 million nationals and the Irish border. Incentives diverge on the size of the UK’s Brexit bill

Unless a withdrawal agreement is reached, the EU will balk at starting talks on the UK’s desired free trade agreement (FTA), making a hard Brexit more likely than not

Brexit, Media 30 March 2017
Audible, audiobooks and lessons from Amazon

Audiobooks are growing fast, driven by smartphone adoption and better supply, as well as interest from people who don’t usually buy books, such as young men

The sector is dominated by the presence of Audible, Amazon’s audiobook publisher/retailer, which has driven growth of audiobooks but put publishers under pressure. Its strategy is a lesson in Amazon’s approach to media

Audio is an opportunity to sell to new customers, but publishers must acquire and use rights responsibly, and experiment while not letting the audio tail wag the print dog

  • Amazon
  • Bertelsmann
Internet, Media, Technology, UK Media 22 August 2018
Audiovisual advertising blues 2007

Television advertising revenues fell by nearly 7% and radio advertising by more than 4% in 2006 according to latest market estimates. We expect declines of around 4% for both media in 2007

TV, Media, Music and Radio 4 January 2007
Augmented reality: Apple’s next 10-year bet

Through innovations in processing, connectivity and cameras, Apple’s new device lineup dispels fears that the importance of integrated, profitable mobile hardware is in terminal decline

With the broadest range of iPhone price points ever, Apple is confidently balancing between profits and growing the valuable installed base

Apple’s long way to an AR future is now well paved, but a weakness in mapping could prove to be an Achilles heel

  • Apple
  • Google
  • Samsung
  • Walt Disney
Media, Technology, Telecoms 20 September 2017
Auto classified advertising

Auto is the third category in our annual series of reports on UK classified advertising, following UK classifieds and recruitment category outlook [2014-094] and Property classified advertising [2014-098]. In this year’s report we analyse the key drivers in the communications marketplace for used cars, notably transaction volumes and pricing. Overall the auto market is relatively buoyant, with the post-recession new car sales boom starting to feed into used car revenues in 2014, although the sustainability of this credit fuelled growth is far from certain. Auto Trader remains the big beast in the marketplace after Guardian Media Group sold its 50.1% stake to Apax Partners earlier this year. Apax will likely be considering an IPO or sale, particularly as market conditions look favourable in 2015 and Auto Trader’s strong leadership position looks largely unchallenged.

Internet, Media 21 November 2014
Auto classified advertising 2013

Auto is the third category in our annual series of reports in UK classified advertising, following UK classifieds and recruitment category outlook [2013-090] and Property classified advertising [2013-091]. Our Auto market report analyses the key drivers in the communications marketplace for used cars, notably transaction volumes and pricing. Overall the auto market is reasonably stable, with new car sales picking up substantially in recent months, while used car sales are roughly flat. AutoTrader remains the big beast in the marketplace, having closed its print product and now focused on developing its digital services alongside its core search. Our report analyses media usage by Car Dealers, and provides five year expenditure forecasts.

Internet, Media 24 October 2013
Auto classified marketplace

Print advertising in the autos classifieds marketplace keeps declining, but significant continued online growth steadies the helm

Five years on from new car financing innovations, and exasperated by changes in consumer behaviour towards greener tech, the used car market is braced for a flood

Auto Trader’s competitors force it to keep innovating, although having saturated the market, its dominance gives it enough headroom to worry about the weather breaking

  • Auto Trader
  • Facebook
  • Google
Non-UK Media, Media, Non UK Media 14 December 2017

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