Vous êtes sur la page 1sur 31

APPLE INC IN CONSUMER ELECTRONICS (WORLD)

December 2011

SCOPE OF THE REPORT

Scope
This profile of Apple Inc focuses on its operations in consumer electronics as
well as its product distribution lines, and examines future opportunities and
challenges for the company globally.

Apple Inc
Consumer
electronics

Retailing

Portable computers

Electronics and appliance


specialist retailers

Portable media players

Internet retailing

Disclaimer
Much of the information in this
briefing is of a statistical nature and,
while every attempt has been made
to ensure accuracy and reliability,
Euromonitor International cannot be
held responsible for omissions or
errors.
Figures in tables and analyses are
calculated from unrounded data and
may not sum. Analyses found in the
briefings may not totally reflect the
companies opinions, reader
discretion is advised.

This profile of Apple Inc


examines the companys
operations in consumer
electronics and retailing, with a
focus on forward looking
analysis of its prospects in
computers and portable
consumer electronics. A brief
overview of Apple Incs content
retailing and operational
specifics is provided to
supplement the core analysis.

Smartphones

Euromonitor International

CONSUMER ELECTRONICS: APPLE INC

PASSPORT 2

STRATEGIC EVALUATION

COMPETITIVE POSITIONING
MARKET ASSESSMENT
CATEGORY OPPORTUNITIES

BRAND STRATEGY
OPERATIONS
RECOMMENDATIONS

STRATEGIC EVALUATION

Key company facts


Apple Inc
Headquarters

Cupertino, CA

Regional Involvement

Worldwide

Category Involvement

Smartphones, computers,
portable media players

World smartphone
share (2010)

16.1%

70,000

16,000

60,000

14,000
12,000

50,000

10,000

40,000

8,000
30,000

6,000

20,000

4,000

10,000

2,000

0
2006

2007

2008

Net sales

Euromonitor International

2009

2010

Net profit

US$ million

US$ million

Apple Inc Net Sales vs Net Profit


2006-2010

Apple`s performance in 2010 improved


significantly with sales increasing by 52%, to
US$65,225 million. The main factor of the
increase in growth was the continued success of
the iPhone.
2010 followed a more moderate performance in
2009, when the company was transitioning from
sales of desktops, laptops and media players to
focusing on the iPhone and iPad as its core
products.
Asia Pacific emerged as the fastest growth area
for Apple with sales rising by 160%. However,
growth was from a low base as the region was
traditionally dominated by Japanese, Korean, and
Taiwanese brands like Sony, Samsung and Acer.
In actual terms, Europe contributed most to
growth, with sales rising by 58%. Japan grew
faster at 75%. The Americas remained the most
important market for Apple, with US$24.5 billion
(excluding retail). The iPhone continued to be
Apples strongest performer in FY2009; in actual
value terms, it accounted for over 50% of Apples
net sales growth, with sales rising by 93%.

CONSUMER ELECTRONICS: APPLE INC

PASSPORT 4

STRATEGIC EVALUATION

Financial assessment
Quarterly Performance
US$ million
Net sales
Operating profit
Operating margin

Q1 2011

Q1 2010

% Y-o-Y
Growth

FY 2010

FY 2009

2010 on 2009
% growth

28,571

15,700

82

65,225

42,905

52

9,379

4,234

122

14,013

8,235

70

32.8%

27%

+5.8pp

21.5%

19.2%

+2.3pp

Source: Apple Inc

The success of the iPhone 4 and iPad 2 models


was instrumental in driving revenues and growing
profitability in 2011.

Yearly Performance by Product Line


US$ million

2010

2009

2010 on 2009
% growth

Aside from revenue from hardware sales both


products serve as important content delivery
devices through which third party providers sell
content and applications from which Apple Inc
derives an increasing revenue stream.

iPad

4.948

n/a

n/m

iPhone

25,179

13,033

93

Mac (total)

17,479

13,859

26

Music (iTunes)

4,948

4,036

23

In Q2 2011, Apple Inc introduced its iCloud cloud


storage service, which allows users to store and
access media via the internet on the companys
devices. The move follows similar product
launches from companies like Amazon Inc.

Peripherals

1,814

1,475

13

Software

2,573

2,411

iPod

8,274

8,091

Euromonitor International

Source: Apple Inc

CONSUMER ELECTRONICS: APPLE INC

PASSPORT 5

STRATEGIC EVALUATION

SWOT: Apple Inc


STRENGTHS

Strong brand image

WEAKNESSES

Cross-industry presence

Narrow product portfolio

Developing markets

Sleek, easy-to-use
Apple is present in
products and a vast
consumer electronics
ecosystem of content and with a strong ecosystem
applications have made
of products and services
Apple a desirable brand
in addition to the Apple
in portable electronics
retail operations, Apple
and computers with
Stores iOS App Store
exceptional brand loyalty. and iTunes Store.

Apple Inc has been


Apple Inc has left itself
reliant on the iPhone
under-exposed to key
and iPad to drive
growth markets such as
revenues, but while
Brazil, India, and China
successful so far this
largely due to the high
strategy carries a
price point of its core
significant risk of lost
product ranges.
market share as growth
shifts to new markets.

OPPORTUNITIES

THREATS

Economy range

In-home entertainment

To capitalise on
As integration of content
opportunities in
on in-home and portable
developing markets and devices increases in
late adopters in
importance, the
developed ones, Apple
company needs a
needs to develop low
stronger presence in inprice ranges in computers home electronics, than
and smartphones.
Apple TV.
Euromonitor International

Hardware price erosion


In the increasingly
crowded smartphone
and tablet markets,
Apple Incs main
competitors are quickly
cutting prices and
accelerating price
erosion.

CONSUMER ELECTRONICS: APPLE INC

Lack of IP in
telecommunications
Apple Inc started out as
a computer
manufacturer which
resulted in a very
narrow IP portfolio in
telecommunications
bringing about
numerous law suits.
PASSPORT 6

STRATEGIC EVALUATION

Key strategic objectives and challenges


Expanded price range
In order to continue growing
Apple will need to increase its
presence in emerging markets,
which in turn makes it less
dependent on the US market.
It is taking steps in the right
direction, with Asia Pacific sales
rising by 160% in FY2010.
Although impressive, the growth
is from a low base and the
region still only accounts for
15% of sales.
Sales of the iPhone were the
main component of the strong
growth, but having exhausted
demand from early adopters
and wealthier consumers, Apple
Inc needs to create an
affordable smartphone to gain
access to a vast base of
consumers who use pre-paid
mobile service.
Euromonitor International

In-home electronics
In the developed world, Apple
Inc must work to develop a
presence in in-home consumer
electronics. This is particularly
important as consumers want a
platform that allows them to
easily access their content on a
variety of in-home electronics,
computers, and portable
devices. While Apple Inc has
been successful in both
computers and smartphones it
has not been able to make
significant inroads into in-home
electronics. This makes it
vulnerable to competition from
Google Inc whose Android 4.0
platform will likely be installed
on internet-enabled TVs and
set-top-boxes in addition to
tablets and smartphones.

CONSUMER ELECTRONICS: APPLE INC

Cloud-based services
A key component of creating a
unified experience across
different types of devices is
cloud computing. Apple Inc is
very well positioned with all the
necessary ground work in place:
wide install-base of iOS in
computers and portable
consumer electronics, strong
services portfolio and a wide
distribution network.
The iCloud service is a followon to Apple Incs previous cloud
services iTools and MobileMe,
and allows users to store and
download data to their devices.
A crucial missing component is
in-home entertainment as at the
time of writing the service was
not available on internetenabled televisions.

PASSPORT 7

STRATEGIC EVALUATION

COMPETITIVE POSITIONING
MARKET ASSESSMENT
CATEGORY OPPORTUNITIES

BRAND STRATEGY
OPERATIONS
RECOMMENDATIONS

COMPETITIVE POSITIONING

Changing the product mix paves way to current success


Apple Incs line of iPod music players was instrumental in bringing it out of obscurity that it found itself in in
the late 1990s and early 2000s. Hoping to build on the success of the media players Apple Inc released the
iPhone in 2007, which was a significant departure from the smartphones of the time. The key difference
was that the iPhone was media and consumer centric, while smartphones running on BlackBerry, Windows
and Palm OS were mainly tailored for productivity-related tasks and the corporate customer.
This departure proved to be a successful gamble and the iPhone along with the iOS App Store emerged as
key revenue growth drivers as demand for computers and media players stagnated since 2008. Demand for
the iPhone has increased with every refresh cycle, and in 2010 Apple Inc released the iPad which has
enjoyed a virtual monopoly through most of 2010 and into 2011 when Samsung Corp and Motorola Mobility
Inc among others released competing products.
Apple Inc: Global Retail Sales by Category 2008-2010
120

Million units

100

Smartphones
Portable Media Players

80

Peripherals
60

Tablets

Netbooks

40

Laptops
20
0
2008

Euromonitor International

Desktops

2009

CONSUMER ELECTRONICS: APPLE INC

2010

PASSPORT 9

COMPETITIVE POSITIONING

Apple Inc has limited penetration within desktops and laptops


Computers: Top 5 Global Companies by
Category Volume Share 2010
% volume share

100
80
60
40
20
0
Desktops
Laptops
Apple Inc
Acer Inc
Hewlett-Packard Development Co LP

Netbooks
Lenovo Group Ltd
Dell Inc

Tablets

Demand for Mac computers is mostly confined to the


developed markets, with nearly half of 2010 laptop
volume sales accounted for by North America.
Although the brand is widely known, its computers are
not price competitive, which makes penetrating mass
markets in developing countries very difficult.
A similar pattern has been observed in the sales of the
iPad with 74% of iPad volume sales accounted for by
North America. The iPad distribution picture in 2010 is
heavily skewed by the fact that the iPad was launched
much earlier in the US, with a global roll-out lasting
through 2010.
Euromonitor International

Apple Inc remained far behind it main


competitors in computers, in desktops and
laptops, and had a negligible presence in
netbooks in 2010. Although Mac computers
have gained popularity they remain priced
higher than most of the Windows-based
competition with a narrower software portfolio
and therefore remains a niche brand.
The situation is reversed in tablets, where Apple
Inc operated as a virtual monopoly through most
of 2010 as competing products did not enter the
market until late 2010 and early 2011.
Apple Inc: Retail Laptop Sales by
Volume Distribution 2010

North America

CONSUMER ELECTRONICS: APPLE INC

Western Europe

Japan

ROW

PASSPORT 10

COMPETITIVE POSITIONING

Apple Inc dominates within portable consumer electronics

Million units

60
40
20
0
MP3 Players
Koninklijke Philips Electronics NV
Creative Technology Ltd
Apple Inc

Multimedia Players
Samsung Corp
Sony Corp

Aside from being an important source of revenue


for Apple Inc in 2001-2010, the iPod line provided a
foundation for the iPhone. Unlike the competition in
2007, the iPhone was largely centered around
media consumption in a smartphone and built to
closely resemble the user experience of the iPod
line, building on the content distribution Apple Inc
established with the iTunes store, expanding it to
applications in the iOS App Store. The content
distribution became an integral part of Apples
ecosystem of devices and services, a major selling
point for its devices.
Euromonitor International

Following its launch in 2001 the iPod quickly


emerged as the biggest selling portable media
player globally. However, the brand is having
difficulties gaining mass acceptance in key
developing markets like China and Russia
particularly with the iPod Touch line of portable
multimedia players which have to compete with
lower-priced brands and Apple Incs iPhone, a
product that is functionally equivalent to the iPod
Touch with the telephony added. The iPod brand is
also less popular in markets where content piracy
is more prevalent as the iTunes store is much less
of a competitive advantage in those markets.
iPhone: Global Volume Sales 2007-2010
50
Million units

Media Players: Global Retail Sales by Top


Brands 2010

40
30
20
10
0
2007

CONSUMER ELECTRONICS: APPLE INC

2008

2009

2010

PASSPORT 11

COMPETITIVE POSITIONING

Online services is key to Apples success


Retailing forms a major part of Apple`s overall operation as the companys content distribution platforms
(iTunes and iOS App Store) are its key competitive advantages. Although its retailing operations, especially
Apple Stores, saw increasing sales in 2010, its share of the companys turnover declined as hardware
sales, especially the iPhone and iPad, grew significantly faster.
Apple Stores
Apple currently operates a global network of almost 293 retail outlets.
Apple outlets are located in flagship locations, like New York`s 5th Avenue and Tokyo`s Ginza Street or
high-profile shopping malls, like London`s Westfield.
The outlet network is dominated by the US, where 207 of the outlets are located; thus the vast majority of
its retail revenue is derived from the US market.
While important in increasing brand visibility, Apple Store sales are lagging behind its online retailing.

Euromonitor International

Apple Inc: Retailing by Segment 2007-2010


25,000
US$ mn, excl VAT

iTunes and iOS App Store


The two retailing brands are at the heart of the
companys content distribution operations.
iTunes distributes music, films, shows and other
multimedia content, while the App Store retails
downloadable applications for the companys
range of iPod Touch, iPhone and iPad.
Both services are an integral part of the
companys offering drawing in content providers
and application developers to provide third party
content for iOS devices.

20,000
15,000
10,000
5,000
0
2007
Internet retailing

CONSUMER ELECTRONICS: APPLE INC

2008

2009

2010

Store-based retailing

PASSPORT 12

STRATEGIC EVALUATION

COMPETITIVE POSITIONING
MARKET ASSESSMENT
CATEGORY OPPORTUNITIES

BRAND STRATEGY
OPERATIONS
RECOMMENDATIONS

MARKET ASSESSMENT

Tablet volume sales to overtake laptops

Million units

Increased reliance on cloud computing will likely make more powerful laptop computers less necessary and
the category will likely stagnate. Network data coverage is expected to continue expanding rapidly, meaning
that the global population as a whole will be increasingly reliant on the internet as a primary means of
obtaining information, creating demand for a low-cost device to access this content. The devices will likely
be highly dependent on cloud services for data storage and processing, so the expansion of cloud services
will facilitate volume growth and price erosion by decreasing the need for high-performance internal
components in tablets.
Global Volume Sales in the Main Computer
By 2013, tablets will overtake
Categories 2010-2015
laptops as the dominant form-factor
180
in portable computers. Growth will
160
be primarily driven by: growth in
140
availability and accessibility of data
120
networks, expansion of consumerorientated cloud computing services
100
and rapid price erosion of hardware.
80
Apple Inc has started to build on its
60
content retail brands to branch out
40
into cloud computing with the
20
launch of its iCloud virtual media
storage service in 2011, but is likely
0
2010
2011
2012
2013
2014
2015
to face an increasing number of
Tablets
Laptops
competitors in this lucrative market.

Euromonitor International

CONSUMER ELECTRONICS: APPLE INC

PASSPORT 14

MARKET ASSESSMENT

Growth shifting to developing markets in smartphones


The switchover from feature phones to smartphones will continue fuelling growth in the latter market across
the world, as global smartphone volume sales are predicted to grow by 42% in 2011 and 33% in 2012, to
reach 540 million units sold in the latter year.

Asia Pacific will be the most important driving force in the global market, as North American and Western
European markets approach saturation. The biggest growth drivers in the region will be China, India,
Indonesia and Philippines. These populous markets have experienced rapid economic development and
have developed a demand propensity for feature phones over the review period. A similar picture will take
shape in Latin America and Middle East and Africa, where countries like Brazil, Argentina and Nigeria are
expected to drive smartphone growth. Despite the recent growth, large portions of the population in these
developing markets remain poor and will likely be looking for economy-priced smartphones with basic
feature sets, as they have done with feature phones.

% 2011-2012 volume growth

Regions of Greatest Expected Smartphone Growth in 2011 and 2012


70
Latin America

60
50

Middle East and Africa

Western Europe

40

Asia Pacific

30
Australasia

20

North America

10
0
0

10

20

30

40

50

60

% 2010-2011 volume growth


Size of bubble represents 2010 volume size. Range shown: 4.5-86 million units

Euromonitor International

CONSUMER ELECTRONICS: APPLE INC

PASSPORT 15

MARKET ASSESSMENT

Store-based retailing to remain dominant


Electronics and Appliance: Retailing by Channel 2005-2015
1,200
US$ billion

1,000
800

Internet retailing

600

Specialist retailers

400

200
0
2005

2006

2007

2008

2009

Despite dynamic growth in electronics and


appliance internet retailing, store-based
specialist retailers will remain the main
distribution channel for consumer
electronics globally. This is due in large part
to the likely slow growth of consumer
electronics internet retailing in developing
markets compared to the growth of
consumer electronics in those markets.
Problems with infrastructure and concerns
about criminality are likely to continue
fueling distrust toward internet retailing in
developing markets despite rapid growth in
overall consumer electronics sales.
Euromonitor International

2010

2011

2012

2013

2014

2015

Revenue by Market as a Percentage of Total Global Sales


2010/2015
2015
2010

Total CE

CE
Internet
Retailing
0%

50%
Japan

100%
North America

CONSUMER ELECTRONICS: APPLE INC

0%
Western Europe

50%

100%

ROW

PASSPORT 16

STRATEGIC EVALUATION

COMPETITIVE POSITIONING
MARKET ASSESSMENT
CATEGORY OPPORTUNITIES

BRAND STRATEGY
OPERATIONS
RECOMMENDATIONS

CATEGORY OPPORTUNITIES

Sharp dip in prices projected within smartphones


Growth in smartphones is shifting toward developing markets and late adopters in developed ones. This
makes lower-cost smartphones instrumental for growth in 2012-2015. China, for example, will emerge as a
key market, but in 2010 just less than 1% of Chinese households had a disposable income exceeding
US$65,000 (compared to almost 50% of US households), although this is set to increase by almost 70% by
2014. It will still represent 5.7 million households, a market smaller than the Netherlands.
Lowering device costs is key to capitalising on growth in developing markets where phones are
predominantly purchased as part of a pre-paid plan, or phone-only. Low-cost smartphones are becoming
increasingly important in developed markets like the US, where an increasing number of consumers have
switched to pre-paid price plans faced with prolonged financial difficulties. Without moving into lower pricebands, Apple Inc will face an uphill battle for mainstream consumers in the biggest developing markets,
where competing smartphone brands have a wide product portfolio including low-cost handsets to
capitalise on the decline in the popularity of the Symbian OS.
Smartphones by OS 2010

Mobile Phones by Type of Contract US


2002-2010

100%
120

90%
80%

100

Symbian

60%

Android

50%
40%

BlackBerry

30%

iOS

20%

Million units

Other

70%

80
60
40
20
0

10%

2002

2003

2004

2005

2006

2007

2008

2009

2010

0%
China

India

Euromonitor International

Russia

Brazil

US

Monthly Contract

CONSUMER ELECTRONICS: APPLE INC

Pay As You Go

Phone Only

PASSPORT 18

CATEGORY OPPORTUNITIES

An Apple ultra-tablet?
The iPad was a big part of Apples financial success in 2010 and 2011, but its power as a revenue source
is fading fast as competitors enter the market and cut prices. In the long run, this price erosion will drive the
tablets market, which will largely replace the netbook as a low-cost computer. In laptops, computer
manufacturers will turn to ultrabooks: slim, low-voltage, clamshell computers that incorporate some
touchscreen capabilities.
Apple Inc has an opportunity to build a touch-centric ultrabook, largely a more powerful version of the iPad
with an optional keyboard to differentiate from other tablets and maintain margins. The key competitor in
these hybrid products will be Microsoft Corps Windows 8 OS. Due out in 2012 it is a platform that is touted
to be equally well-suited for touchscreen and traditional clamshell portable computers.
Global Tablets Market Volume Sales vs Price 2010-2015
200
180

600

160

500

140

400

120
100

300

80

200

60

Million units

US$, constant 2010 prices

700

40

100

20

0
2010

2011

2012
Average unit price

Euromonitor International

2013

2014

2015

Retail volume

CONSUMER ELECTRONICS: APPLE INC

PASSPORT 19

CATEGORY OPPORTUNITIES

Harnessing the health and wellness potential in media players


Apple Incs line of iPod portable media players played a crucial part in the companys growth over 20002010, but demand for portable media players is declining due primarily to competition from smartphones.
Spending on health and wellness products has been growing dynamically in food and non-alcoholic drinks
with related products also reaping the benefits. Garmin Incs in-car navigation business has also faced
declining demand with growing smartphone sales, but the companys Forerunner line of watch-sized, GPSenabled, personal fitness computers became increasingly popular in 2011.
Demand for health and wellness-related products is on the rise in the US, where much of the attention is
focused on combatting obesity, but the trend is quickly proliferating to some of the largest developing
markets. iPods remain very popular globally, and adding a line of rugged, fitness-orientated models with
integrated GPS and heart-rate monitors would be the best way to maintain margins and volume demand by
differentiating from smartphones.
Health and Wellness: Spending by Country 2005-2015
800
700
US$ billion

600

500
400
300

200
100
0
2005

2006
ROW

Euromonitor International

2007

2008
US

2009
Brazil

2010
Russia

2011
Indonesia

CONSUMER ELECTRONICS: APPLE INC

2012

2013
India

2014

2015

China

PASSPORT 20

STRATEGIC EVALUATION

COMPETITIVE POSITIONING
MARKET ASSESSMENT
CATEGORY OPPORTUNITIES

BRAND STRATEGY
OPERATIONS
RECOMMENDATIONS

BRAND STRATEGY

Building the Apple name


A key to the success of Apple Inc has been its unified approach to the consumer experience creating an
ecosystem around its core products consisting of:

Hardware

Euromonitor International

Services

Content

Computers

CONSUMER ELECTRONICS: APPLE INC

Portable
Consumer
Electronics

PASSPORT 22

BRAND STRATEGY

Apple Incs hardware


Apple Inc designs its hardware in a polished minimalist look. While usually not a record setter in terms of
hardware performance, the companys devices are slim, ergonomic, user-friendly and tend to command a
price premium over most competing products.

Pros

Cons

Euromonitor International

The companys products are among the most user-friendly,


emphasising simplicity in operation and a minimalist design,
along with key performance features like battery life.

Most criticism of the products stems from the sacrifice in


functionality for design. Notably the launch of the iPhone 4
was accompanied by allegations that the phones antenna
malfunctioned when the phone was held a certain way.

CONSUMER ELECTRONICS: APPLE INC

PASSPORT 23

BRAND STRATEGY

Apple Incs software


The iOS mobile operating system is centered around media consumption and third party applications. The
platform was a significant departure from smartphone platforms of 2007 when it was launched, as it focused
on user friendliness instead of native productivity applications and multitasking.

Services

Apple Incs primary content offerings are at the core of its


delivery platform. Films and music are primarily purchased
through iTunes, but an increasing number of on-demand
music services have been made available on iOS devices via
applications downloadable via the App Store.

Content

A key competitive advantage for iOS is the wide selection of


software. The company has a significant following in the
developer community with most applications being written for
iOS first, with subsequent releases for Android and Windows
Phone 7.

Euromonitor International

CONSUMER ELECTRONICS: APPLE INC

PASSPORT 24

STRATEGIC EVALUATION

COMPETITIVE POSITIONING
MARKET ASSESSMENT
CATEGORY OPPORTUNITIES

BRAND STRATEGY
OPERATIONS
RECOMMENDATIONS

OPERATIONS

Productions and sourcing strategies


All manufacturing operations outsourced to third parties
Apple outsources the manufacturing of all its products. The majority of the manufacturing is conducted by a
small circle of large suppliers including: Samsung Corp, Hon Hai Precision Industry Co Ltd and Quanta
Computer Inc.
Amid litigation over patent infringement with Samsung Corp and the bad press Hon Hai Precision Industry
Co Ltd received over a string of worker suicides, it is increasingly likely that Apple Inc will broaden its
supplier base with possible candidates including LG Corp and Taiwan Semiconductor Manufacturing
Company.
Final assembly conducted by Apple and selected outsourced partners
Apple owns a manufacturing facility in Cork, Ireland, which is used primarily for the final assembly of Apple
products such as iPods, iPhones, etc.
Other outsourced assembly operations are located in the US, China, the Czech Republic and South Korea.
Warehousing, distribution and other operations
Apple owns one warehousing facility in California, USA, and outsources warehousing operations in the rest
of the world.
Company headquarters are located in Cupertino, California, and there is also a data centre in Newark,
California, with a second data centre expected to be opened in North Carolina over the next few years.

Euromonitor International

CONSUMER ELECTRONICS: APPLE INC

PASSPORT 26

STRATEGIC EVALUATION

COMPETITIVE POSITIONING
MARKET ASSESSMENT
CATEGORY OPPORTUNITIES

BRAND STRATEGY
OPERATIONS
RECOMMENDATIONS

RECOMMENDATIONS

Hardware diversification
Low-cost smartphones

Fitness-orientated line of iPods

Ultratablets

The iPhone has performed well


since the device was initially
launched in 2007, but with the
emergence of a wide variety of
Android phones, Apple Inc risks
missing out on growth in
smartphone demand among
low-income consumers in
developed markets and
mainstream consumers in
developing countries.
Affordability will be key for
consumers especially in
markets where phones are
primarily bought outside of
service contracts. The absence
of low-cost mobile phones is the
main threat facing the company
over the foreseeable future as
smartphone growth is shifting to
developing markets.

With sales of portable media


players expected to continue
falling, Apple Inc along with its
major competitors shifted their
focus to smartphones and
tablets. This leaves an
opportunity to take advantage of
the growing health and wellness
trend with a line of media
players that incorporate GPS
and biometric sensors to track
and aid workouts. Apple Inc
remains the leader in portable
media players and has a
significant following among
young, urban consumers
making it more likely than not
that a line of Apple-branded,
fitness-orientated portable
media players would be
successful.

The iPad has been successful


in 2010 and managed to
maintain an edge on the
competition in 2011, but the
market is fast developing and
the emergence of low-voltage
touch-orientated clamshell
computers will likely present a
significant challenge forcing
tablet manufacturers to
concentrate more on facilitating
content creation and productivity
in tablets, rather than just
content consumption. This will
likely require a hybrid
laptop/tablet device that
incorporates the functionality of
a laptop and the battery
performance portability of a
tablet.

Euromonitor International

CONSUMER ELECTRONICS: APPLE INC

PASSPORT 28

RECOMMENDATIONS

Filling the gaps


Aside from diversifying its hardware line-up, Apple Inc needs to address two major shortfalls in its current
strategy to stay competitive in the long run. While Apple Inc has been successful in the consumer market, it
risks becoming complacent in the current business model and leave room for competing platforms by
leaving two key areas unaddressed:
iOS: Focus on security

Move into in-home

While the companys success in the consumer


market has driven revenues since the launch of the
iPhone, its sub-standard security credentials have
largely kept it out of securing major enterprise and
government contracts.

On the consumer side of the market, the iOS


ecosystem is missing a key component: in-home
content delivery. The company has released Apple
TV, but without support for 1080p video and a
limited content library the set-top box is far behind
competitors like Boxee and Roku.

BlackBerry-branded products are certified for


transmission of sensitive data by regulatory
agencies of most major governments and NGOs
like NATO. Apple Inc largely ceded the enterprise
and government market to Research in Motion Ltd,
as it focused on the consumer market, but rapid
comodisation of smartphones will continue
squeezing hardware margins making enterpriseorientated products and services increasingly
attractive.

Euromonitor International

The lack of a compelling in-home content delivery


system leaves room for Google Incs Android 4.0 to
enter the market and create a unified experience
with a single platform running on smartphones, settop boxes, internet-enabled TVs and tablets.

CONSUMER ELECTRONICS: APPLE INC

PASSPORT 29

REPORT DEFINITIONS

Definitions
Historic value data are given in US$ year-on-year exchange rates, unless otherwise stated.
Forecast value data are given in real (constant), US$ terms using fixed 2009 exchange rates, unless
otherwise stated.
Historic volume data are given in '000 units, unless otherwise stated.
Profile coverage:
Portable Computers
Laptops: Personal computers (PCs) meant for mobile use and must incorporate an external power
source, usually a rechargeable battery pack.
Other Portable Computers: includes mobile internet-enabled devices that do not fit the definitions for
laptops and netbooks capable of multimedia playback and running software applications.
Portable Consumer Electronics
Portable Media Players: portable players that support digital audio, video playback, text and images.
Portable Media Players includes: E-Book, Portable MP3 Players, Portable Multimedia Players, Other
Portable Media Players.
Smartphones: a device capable of voice communication over a cellular network that fulfills all three of
the below criteria:
Has an identifiable operating system (e.g., Android, BlackBerry OS, iOS, Symbian, Windows).
Allows installation of software applications.
Has a screen size of <5.

Euromonitor International

CONSUMER ELECTRONICS: APPLE INC

PASSPORT 30

Experience more...
This research from Euromonitor International is part of a global
strategic intelligence system which offers a complete picture of
the commercial environment. Also available from Euromonitor
International:
Global Briefings
Timely, relevant insight published every month on the state of the
market , emerging trends and pressing industry issues.
Interactive Statistical Database
Complete market analysis at a levels of detail beyond any other
source. Market sizes, market shares, distribution channels and
forecasts.
Strategy Briefings
Executive debate on the global trends changing the consumer markets
of the future.
Global Company Profiles
The competitive positioning and strategic direction of leading
companies including uniquely sector-specific sales and share data.
Country Market Insight Reports
The key drivers influencing the industry in each country;
comprehensive coverage of supply-side and demand trends and how
they shape the future outlook.
Euromonitor International

CONSUMER ELECTRONICS: APPLE INC

Learn More
To find out more about
Euromonitor International's
complete range of business
intelligence on industries,
countries and consumers please
visit www.euromonitor.com or
contact your local Euromonitor
International office:
London +44 (0)20 7251 8024

Chicago +1 312 922 1115


Singapore +65 6429 0590
Shanghai +86 21 6372 6288
Vilnius +370 5 243 1577
Dubai +971 4 372 4363
Cape Town +27 21 552 0037
Santiago +56 2 915 7200
Sydney +61 2 9275 8869
Tokyo +81 3 5403 4790
Bangalore +91 80 49040500

PASSPORT 31

Vous aimerez peut-être aussi