With the expected launch of Apple's iPhone 6 and iWatch just days away, Sophie Curtis examines how vital it is for the company to wow Britain's shoppers, who account for 10pc of the company's revenue
All eyes will be on San Francisco next Tuesday, when Apple unveils its latest
devices to the world, but aside from investors and shareholders, who will
the world's most valuable brand really need to impress?
Around 40 per cent of Apple's revenue comes from the United States, accounting
for £8.9 billion of the company's £22.9 billion in revenue during the last
quarter. Europe as a whole accounted for about 22 per cent, while China
accounted for 16 per cent.
Apple does not disclose sales figures for individual European countries, but
analysts estimate that 10 per cent of the company's global revenues come
from Britain, which would equate to £2.3 billion last quarter, and £10.5
billion in 2013.
While 10 per cent may sound relatively small, this represents a significant
chunk of Apple's customer base. The iPhone currently has a 28.6 per cent
share of the UK smartphone market, according to Kantar Worldpanel ComTech,
slightly down from 29.4 per cent last year.
Many iPhone users admit to having 'blind loyalty' to Apple, but Android still dominates in Britain, with smartphones from Sony, Samsung, Motorola and HTC chipping away at the company's market share. Apple's new devices will therefore need to be sufficiently alluring to prevent British customers from defecting to Android.
However, Apple's revenues rely not just on device sales, but on use of its wider digital platform, which incorporates iOS, Mac, iTunes, the App Store, and iCloud. Apps, in particular, provide a vital source of income.
Currently, Apple's iOS operating system forms the basis 497,000 jobs in Europe – around half of all 'app economy' jobs on the continent, according to a recent report by Vision Mobile.
Although more developers overall use Google's Android operating system, iOS is the preferred platform for professional developers, prioritised by 43 per cent of professional developers, compared to 35 per cent for Android.
The UK accounts for 18 per cent of app developers and 32 per cent of app revenues in Europe, and the UK app economy is expected to exceed £4 billion in 2014. Almost half of UK developers generate most of their revenues from sales outside Europe
It is therefore important for Apple to impress not only consumers but developers, so that they continue to focus their efforts on the iOS platform. The company's vast ecosystem of apps is, after all, one of the iPhone's core strengths.
Another important aspect, if Apple is indeed planning to launch an iWatch, is Britain's strong position in the watch market. While Swiss giants like Swatch have always dominated, British brands like Zeon, (which owns Vivienne Westwood, Ventura, Bench, Braun, and Paul's Boutique) and Breo have performed well in recent years.
Although the total UK watch market witnessed a sales volume decline of 7 percent last year, value grew 2.3 percent, and high-end luxury watches on the high street reported a 17 percent increase in value sales.
If Apple plans to pitch its iWatch as a fashion item as well as a tech accessory, the UK will be a testbed for whether the device can stand up to competition from traditional watchmakers.
If Britons decided to abandon Apple overnight, it would not bring the company to its knees, but it would make a significant dent in its revenues. It would also remove an important gateway for Apple to the rest of Europe.
Of course, the likelihood of Apple's British customers falling out of love with the iPhone is fairly slim, but Samsung’s share of the UK smartphone market has grown from 32 per cent to 36 per cent in the last year, and Android accounts for a healthy 59.5 per cent of the overall market.
Apple won't be worrying yet, but it better hope that its iPhone 6 and iWatch can reignite Britain's obsession with its products, and inspire developers to remain loyal to its platform.
Telegraph
Many iPhone users admit to having 'blind loyalty' to Apple, but Android still dominates in Britain, with smartphones from Sony, Samsung, Motorola and HTC chipping away at the company's market share. Apple's new devices will therefore need to be sufficiently alluring to prevent British customers from defecting to Android.
However, Apple's revenues rely not just on device sales, but on use of its wider digital platform, which incorporates iOS, Mac, iTunes, the App Store, and iCloud. Apps, in particular, provide a vital source of income.
Currently, Apple's iOS operating system forms the basis 497,000 jobs in Europe – around half of all 'app economy' jobs on the continent, according to a recent report by Vision Mobile.
Although more developers overall use Google's Android operating system, iOS is the preferred platform for professional developers, prioritised by 43 per cent of professional developers, compared to 35 per cent for Android.
The UK accounts for 18 per cent of app developers and 32 per cent of app revenues in Europe, and the UK app economy is expected to exceed £4 billion in 2014. Almost half of UK developers generate most of their revenues from sales outside Europe
It is therefore important for Apple to impress not only consumers but developers, so that they continue to focus their efforts on the iOS platform. The company's vast ecosystem of apps is, after all, one of the iPhone's core strengths.
Another important aspect, if Apple is indeed planning to launch an iWatch, is Britain's strong position in the watch market. While Swiss giants like Swatch have always dominated, British brands like Zeon, (which owns Vivienne Westwood, Ventura, Bench, Braun, and Paul's Boutique) and Breo have performed well in recent years.
Although the total UK watch market witnessed a sales volume decline of 7 percent last year, value grew 2.3 percent, and high-end luxury watches on the high street reported a 17 percent increase in value sales.
If Apple plans to pitch its iWatch as a fashion item as well as a tech accessory, the UK will be a testbed for whether the device can stand up to competition from traditional watchmakers.
If Britons decided to abandon Apple overnight, it would not bring the company to its knees, but it would make a significant dent in its revenues. It would also remove an important gateway for Apple to the rest of Europe.
Of course, the likelihood of Apple's British customers falling out of love with the iPhone is fairly slim, but Samsung’s share of the UK smartphone market has grown from 32 per cent to 36 per cent in the last year, and Android accounts for a healthy 59.5 per cent of the overall market.
Apple won't be worrying yet, but it better hope that its iPhone 6 and iWatch can reignite Britain's obsession with its products, and inspire developers to remain loyal to its platform.
Telegraph
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