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Sources tell 9to5Mac that the companies will begin offering wireless over-the-air updates to the iPhone following the release of iOS 5.
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Apple, Verizon to offer wireless updates to iPhone?
Sources tell 9to5Mac that the companies will begin offering wireless over-the-air updates to the iPhone following the release of iOS 5.
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Apple, Verizon to offer wireless updates to iPhone?
But yesterday, comScore finally put some numbers behind that latter argument, building off its earlier report regarding February data on smartphone usage to reveal that the overall iOS platform of iPhone, iPad, and iPod touch reaches 37.9 million users in the U.S., 59% greater than the reach of Android.
Initial research indicates that Apple’s iOS platform, which resides on iPhones, iPads and iPod Touches, has a combined platform reach of 37.9 million among all mobile phones, tablets and other such connected media devices, outreaching the Android platform by 59 percent.
Rather than simply counting device sales, comScore’s data tracks individual users, making that 37.9 million number reflective of users (some of whom have more than one iOS device) rather than devices directly.
As a result, Apple’s iOS reaches 16.2% of the 234 million mobile platform users in the United States, with Android registering at 10.2% with 23.8 million users.
But perhaps most notably, comScore finds that there is not a tremendous amount of overlap in users, with only 10.5% of iOS users accessing the system from multiple devices such as an iPhone and iPad or iPhone and iPod touch.
“These data clearly illustrate the Apple ecosystem extends far beyond the iPhone,” added [comScore senior vice president of mobile Mark] Donovan. “Though it’s frequently assumed that the Apple user base is composed of dedicated Apple ‘fanboys’, there’s not a tremendous amount of overlapping mobile device access among these users. This of course has significant implications for the developer community as they consider the market potential in developing applications for different mobile platforms.”
The survey also shows a broad appeal for the iPad, moving well beyond existing iPhone users to appeal to users of smartphones from a number of other companies. In particular, LG, Samsung, and Nokia smartphone users are overrepresented when it comes to iPad ownership, while users of Research in Motion and Motorola smartphones are somewhat underrepresented in iPad ownership. According to the survey, only 27.3% of iPad owners are also iPhone owners, while 17.5% are BlackBerry owners, 14.3% are Samsung owners, and 12.1% are LG owners.
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Digitimes reports that Apple has secured nearly 60% of the global touch panel capacity of 2011 in order to fulfill its internal goals of shipping 40 million iPads this year.
Sources from tablet PC makers also pointed out that the component shortage is causing their shipment volumes to be unable to catch up with their orders, especially for second-tier players. Touch panels are currently suffering the most serious shortage due to Apple holding control over the capacity of major touch panel makers such as Wintek and TPK, and with US-based RIM, Motorola and Hewlett-Packard (HP) also competing for related components, second-tier players are already out of the game, the sources noted.
So called “second tier” players are seemingly unable to obtain supply due to the high demand from Apple and other companies.
Apple had previously revealed that they had prepaied $3.9 billion to three companies in order to guarantee long term supply of a certain component, but stopped short of revealing which one. This news seems to further indicate that Apple spent its $3.9 billion investment towards securing LCD supply for its future products.
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Over the past few years, much has been made of Apple’s reserves of cash and securities, which are now up to approximately $60 billion and growing rapidly. Some observers have suggested the company initiate a stock buyback or issue dividends to reward investors with some of the profits, while others have preferred that the cash remain in Apple’s hands to enable the company to reinvest it into the business at some point in the future for greater returns. Apple CEO Steve Jobs noted during the company’s October 2010 earnings conference call that Apple is holding onto the cash in order to take advantage of “one or more unique strategic opportunities” that it believes may present itself.
But all of the money may not be available for immediate use, as Fortune reports that Apple is one of a number of U.S. companies with significant profits generated in international markets that continue to sit abroad as the companies prefer to not pay the 35% federal tax charged on such foreign earnings.
To address this situation, Apple and these other major players are reportedly stepping up lobbying efforts to try to get the federal government to offer a one-year “tax holiday” that would allow them to bring the profits back to the United States while only being subjected to 5% tax, with the rationale being that the money could be put to work in the U.S. to stimulate the economy rather than simply sitting in foreign bank accounts.
A group of tech, pharmaceutical and energy giants is readying a major lobbying blitz for a tax holiday that would allow them to bring home the estimated $1 trillion they’ve got parked overseas at a steeply discounted rate, Fortune has learned.
The campaign is still in its planning stages, but sources close to the effort say Oracle, Cisco, Apple, Duke Energy, and Pfizer are among the major players looking to bankroll a coordinated, sustained pitch to sell policymakers on the idea. Their aim is to win a one-year tax amnesty on their foreign earnings, allowing them to repatriate that money at a tax rate of about 5%, instead of the 35% they face now.
International markets have become increasingly important to Apple as iOS devices have proliferated around the world. In fact, Apple reported that during its most recent quarter, 62% of its revenue came from international sales. Consequently, billions of dollars in profit are being generated overseas each quarter, and Apple has been loathe to turn over 35% of those sums to the U.S. government.
On a possibly related note, Apple recently hired high-profile lobbying firm Fierce, Isakowitz and Blalock to assist with government dealings, an unusual move for the company that has typically refrained from significant lobbying in Washington, DC.
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Last week, we noted that Apple and Campbell’s had commissioned a study that demonstrated that Apple’s iAd mobile advertising platform offers advertisers more bang for their buck and greater brand recognition than traditional advertising channels such as television.
Apple may have felt it needed that data in order to entice advertisers to join the program, as a new report from TechCrunch suggests that fill rates for ad requests are dropping and the company’s staffers are struggling to get advertisers to sign on following the initial high-publicity push that accompanied the service’s launch last July.
Across the board, several developers I’ve spoken to confirm that “fill rates” for iAds dropped drastically after the New Year and have yet to recover. The fill rate – what percentage of the ad inventory is actually filled with an ad – for two separate developers plummeted from 18 percent to 6 percent. And in a few instances for some newer apps, none of the ad slots were getting filled, compared to nearly complete fill rates from other mobile ad networks. Others report better fill rates but as one developer says, “They have definitely come down.”
The report isn’t the first to note a significant drop in fill rates with the new year, and it is unclear whether the result is due to a decline in advertiser participation because of dissatisfaction with the program, expected seasonal variations in advertising spending, or simply Apple struggling to fill an increasing number of available slots buoyed by a burst of sales of iOS devices over the holidays.
But TechCrunch‘s report delves further into the situation, noting that the initial wave of advertisers were brought on board with Steve Jobs and other key executives personally meeting with CEOs of other companies to seal the deal, and now that that initial splash is over, the iAd program is becoming a harder sell.
After selling the initial campaigns, the relationships were dumped into the laps of junior account managers in Apple’s advertising business (which came out of Apple’s $275 million acquisition of Quattro Wireless last year). They are being tasked to get renewals this year from ad agencies and brands or equal or greater amounts. But the experiment is over (advertisers can now see how the ads perform) and these junior salesmen don’t have access to the CEOs. They need to talk to their counterparts at ad agencies and brands, who can’t spend $1 million on a mobile ad campaign so easily. One ad agency executive tells me that the iAd salespeople are suddenly calling a lot more and becoming very aggressive in pushing for renewals.
Other issues such as a lack of cross-platform compatibility and pricing structures have also been cited as reasons for advertisers being wary of coming on board, but together it appears that Apple may be having problems expanding the program rapidly enough to satisfy the growing number of apps and devices looking to tap into iAds.
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The iPhone on a new carrier network will be a headache for other companies.
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5 Losers of the Verizon iPhone
While plenty of details on Apple and Verizon’s upcoming relationship were released, there are still plenty of questions left unanswered. Here’s a look at what the companies didn’t say today.
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iPhone Meets Verizon: What We Still Don’t Know