Académique Documents
Professionnel Documents
Culture Documents
December 2011
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
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.
Smartphones
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PASSPORT 2
STRATEGIC EVALUATION
COMPETITIVE POSITIONING
MARKET ASSESSMENT
CATEGORY OPPORTUNITIES
BRAND STRATEGY
OPERATIONS
RECOMMENDATIONS
STRATEGIC EVALUATION
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
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2009
2010
Net profit
US$ million
US$ million
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
2010
2009
2010 on 2009
% growth
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
Peripherals
1,814
1,475
13
Software
2,573
2,411
iPod
8,274
8,091
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PASSPORT 5
STRATEGIC EVALUATION
WEAKNESSES
Cross-industry presence
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.
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
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
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.
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
Million units
100
Smartphones
Portable Media Players
80
Peripherals
60
Tablets
Netbooks
40
Laptops
20
0
2008
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Desktops
2009
2010
PASSPORT 9
COMPETITIVE POSITIONING
100
80
60
40
20
0
Desktops
Laptops
Apple Inc
Acer Inc
Hewlett-Packard Development Co LP
Netbooks
Lenovo Group Ltd
Dell Inc
Tablets
North America
Western Europe
Japan
ROW
PASSPORT 10
COMPETITIVE POSITIONING
Million units
60
40
20
0
MP3 Players
Koninklijke Philips Electronics NV
Creative Technology Ltd
Apple Inc
Multimedia Players
Samsung Corp
Sony Corp
40
30
20
10
0
2007
2008
2009
2010
PASSPORT 11
COMPETITIVE POSITIONING
Euromonitor International
20,000
15,000
10,000
5,000
0
2007
Internet retailing
2008
2009
2010
Store-based retailing
PASSPORT 12
STRATEGIC EVALUATION
COMPETITIVE POSITIONING
MARKET ASSESSMENT
CATEGORY OPPORTUNITIES
BRAND STRATEGY
OPERATIONS
RECOMMENDATIONS
MARKET ASSESSMENT
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.
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PASSPORT 14
MARKET ASSESSMENT
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.
60
50
Western Europe
40
Asia Pacific
30
Australasia
20
North America
10
0
0
10
20
30
40
50
60
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PASSPORT 15
MARKET ASSESSMENT
1,000
800
Internet retailing
600
Specialist retailers
400
200
0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Total CE
CE
Internet
Retailing
0%
50%
Japan
100%
North America
0%
Western Europe
50%
100%
ROW
PASSPORT 16
STRATEGIC EVALUATION
COMPETITIVE POSITIONING
MARKET ASSESSMENT
CATEGORY OPPORTUNITIES
BRAND STRATEGY
OPERATIONS
RECOMMENDATIONS
CATEGORY OPPORTUNITIES
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
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Russia
Brazil
US
Monthly Contract
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
700
40
100
20
0
2010
2011
2012
Average unit price
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2013
2014
2015
Retail volume
PASSPORT 19
CATEGORY OPPORTUNITIES
600
500
400
300
200
100
0
2005
2006
ROW
Euromonitor International
2007
2008
US
2009
Brazil
2010
Russia
2011
Indonesia
2012
2013
India
2014
2015
China
PASSPORT 20
STRATEGIC EVALUATION
COMPETITIVE POSITIONING
MARKET ASSESSMENT
CATEGORY OPPORTUNITIES
BRAND STRATEGY
OPERATIONS
RECOMMENDATIONS
BRAND STRATEGY
Hardware
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Services
Content
Computers
Portable
Consumer
Electronics
PASSPORT 22
BRAND STRATEGY
Pros
Cons
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PASSPORT 23
BRAND STRATEGY
Services
Content
Euromonitor International
PASSPORT 24
STRATEGIC EVALUATION
COMPETITIVE POSITIONING
MARKET ASSESSMENT
CATEGORY OPPORTUNITIES
BRAND STRATEGY
OPERATIONS
RECOMMENDATIONS
OPERATIONS
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PASSPORT 26
STRATEGIC EVALUATION
COMPETITIVE POSITIONING
MARKET ASSESSMENT
CATEGORY OPPORTUNITIES
BRAND STRATEGY
OPERATIONS
RECOMMENDATIONS
RECOMMENDATIONS
Hardware diversification
Low-cost smartphones
Ultratablets
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PASSPORT 28
RECOMMENDATIONS
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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.
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PASSPORT 30
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PASSPORT 31