Analysys Mason: 3G iPhone set to make significant impact on mobile TV market

With the imminent launch of its 3G iPhone, Apple has a window of opportunity to have a significant impact on the mobile TV market, according to the latest report from Analysys Mason, advisers on telecoms, IT and digital media.

There is considerable speculation about what next to expect from Apple’s iPhone ahead of CEO Steve Jobs’ keynote at the annual Worldwide Developers Conference (WWDC) in San Francisco on Monday.

“The iPhone could become the mobile video delivery device of choice for many consumers, by providing a compelling mobile TV and video proposition before mobile broadcasting networks, such as DVB-H become widely available,” says Mark Heath, co-author of the new Analysys Mason report iPhone Shows the Way for Mobile TV, in the press release.

Many operators are offering mobile TV services, using 3G streaming, but these are constrained by lack of coverage, relatively poor quality of service and 3G capacity limitations (as 3G networks may only support relatively low penetrations of mobile TV users).

Market research shows that many iPhone owners have accessed TV and video content, with greater frequency than subscribers using other types of mobile handsets. With added 3G capability, the iPhone will bring the following highly attractive attributes to the mobile TV market.

– Video-friendly specifications, including high-quality widescreen display, substantial internal memory and low battery consumption.
– Access to a rapidly increasing range of TV and video content provided by Apple or specifically optimised for the iPhone. By May 2008, the iTunes Store had a catalogue of 600 TV programmes and over 1500 films and, by April 2008, Apple iTunes had sold 125 million TV programmes.
– The ability to support multiple methods of delivering TV and video content, including sideloading, indoor WLAN and high-speed 3G cellular data access. Sideloading and indoor WLAN minimises the amount of TV and video traffic that needs to be carried on 3G networks, allowing 3G operators to support high rates of mobile TV penetration.

While iPhone take-up has been relatively modest, with cumulative sales of about 5.4 million units by the end of March 2008, this is due to Apple’s initial strategies of constraining worldwide availability and launching exclusively with a single operator in each market. As Apple moves away from these restrictive distribution strategies, there could be substantial growth in the number of iPhones sold.

“If the iPhone is able to achieve significant worldwide market share, it will be well-positioned to have a significant impact on the way mobile subscribers purchase and watch mobile TV and video content,” adds Dr Alastair Brydon, co-author of the report.

The report, “iPhone Shows the Way for Mobile TV” is available to purchase online at http://store.analysys.com, priced at GBP1700 (approximately EUR2165) plus VAT.

Source: Analysys Mason

14 Comments

  1. 5.8 million units shipped by march?

    Frak me sideways. with iphone 2.0 due out apple will hit 12 million units shipped by christmas with ease.

    Apple is going to piss off all those analysts who said apple couldn’t ship 10 million units. Some how I have a feeling apple is going to be damn close 15 million by the ed of 2008.

  2. peragrin:

    Steve Jobs promised 1% of the smart phone world market. As long as Apple keeps shooting for the low number success is always guaranteed.

    I’d rather hear Jobs project 15%, but I suppose that would be unrealistic. Still, this coming monday maybe Jobs will boldly share his confident vision of 2.1% by Q1 2010.

  3. A guy who I work with went into an AT&T;store, specifically to buy the iPhone ( I don’t know why he did this so close to the iPhone 2.0 releasing – maybe he didn’t know ) but the Sales guy had an iphone one him – he said all the employees were supposed to, but he said ‘you can buy an iPhone if you want, but you should really take a look at this LG VU’ and, well, he bought the LG. Now, he showed me the LG, and it is really really cool. It has live TV on it, and a really nice display. The iPhone doesn’t have the live TV on it ( yet ) but it’d be really sweet if it does come Monday. I am hoping for that, cause I am going to buy it, and show the guy I work with what he missed out on!

  4. I am already paying a monthly fee for phone and data service.
    I am already paying a monthly fee for internet service at my house.
    I already pay for TV service monthly for my home.

    Why do I want to pay another monthly fee for mobile TV and receive 5 channels I do not want to watch?

    I would much rather download content a la carte, content I actually want to watch.

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