Released on = April 19, 2006, 3:25 am

Press Release Author = Visiongain

Industry = Telecommunications

Press Release Summary = Visiongain believes that the years 2006 and 2007 will see
Apple's product offerings accelerate as it focuses on convergence technologies. This
is one of the findings of visiongain's latest report, "Apple in Wireless: Strategic
options in a converged marketplace."

Press Release Body = San Francisco, CA and London, UK; 18 April 2006: Visiongain
believes that the years 2006 and 2007 will see Apple's product offerings accelerate
as it focuses on convergence technologies. This is one of the findings of
visiongain's latest report, "Apple in Wireless: Strategic options in a converged
marketplace."

Apple shipped over 14 million iPods during fiscal Q1 2006 ended December 2005,
representing 207% growth over the year-ago quarter, and visiongain estimates total
shipments of over 40 million iPods. Thanks to close synergies and integration with
the iPod, meanwhile, over one billion tracks have been downloaded from the iTunes
Music Store since it launched on Windows in October 2003.

Apple acknowledges the threat mobile handsets pose to portable MP3 players in the
long term. As such, it has begun to make a mobile play - initially, via the failed
Motorola partnership that resulted in the poorly received ROKR handset, a lowest
common denominator product that compromised all of Apple's strengths.

However, Apple will embrace mobile more fully and pose a greater threat to the
mobile phone industry itself - as an MVNO challenging carriers and a cellphone brand
challenging handset makers. Upcoming US MVNO Helio presents a good entry strategy
for Apple's iPhone, an own-brand Apple mobile phone that is likely to be launched by
the company. Indeed, the release of which is both logical and inevitable, argues
visiongain.

The move towards digital entertainment and entertainment convergence has created a
powerful opportunity for companies such as Apple. In 2006, visiongain expects over
40% of all cars sold in the US in 2006 to offer iPod connectivity - not MP3 player
connectivity, but iPod only.

"The iPod capitalised on and redefined the emerging digital content market that has
thus far proven elusive to other industries and iPod competitors," says visiongain
analyst and the report's lead author, Pam Duffey.

"iPod\'s story, however counter-intuitive it may appear, does prove innovation is key
to seizing the lion\'s share of the market. The incredibly simplistic user interface
encourages greater usage, and has been Apple\'s greatest gift to the computing
masses," adds Duffey.

"Beyond solid pricing strategy, Apple is expanding its distribution methods and
network to grab and maintain leading market share," concludes Duffey.

This report analyses Apple's core products and competencies, the company's strengths
and weaknesses, the opportunities that exist for its entry into mobile wireless - on
the handset and service sides, and the impact of this move on Apple and the cellular
industry. It also discusses the possibility of the iPod getting VoIP functionality
and what the implications would be.

ENDS

Notes for Editors
If you are interested in a more detailed overview of this report, including the
Executive Summary, charts and images, please send an email to
sara.peerun@visiongain.com or phone Sara on +44 (0) 20 8767 6711.

About visiongain


Visiongain is a specialist Business Information Company, focussed on providing
cutting edge products and services across the Telecommunications, Defence,
Pharmaceutical and Finance sectors. The company produces a host of management
reports, offers a consultancy service, as well as producing business conferences,
newsletters, and e-zines.

The company has firmly established itself as the first port-of-call for the business
professional, who needs timely and independent, high quality, original material to
rely on.

Visiongain has a global client base with offices in London and San Francisco.

For more information on visiongain, please visit the website:
www.visiongainintelligence.com


Web Site = http://www.visiongain.com

Contact Details = Visiongain
40 Tooting High Street
SW17 ORG
Tel +44 (0)20 87676711
Fax +44 (0)20 87675001