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iPad-hungry Swedes make tablet sales double

Sales of Apple’s iPad and other tablet computers have more than doubled in the past year in Sweden, where tablets are now selling better than ordinary desktop computers.

Published: 22 March 2012 15:54 CET

iPad-hungry Swedes make tablet sales double

Swedes bought an estimated 34,000 tablet computers in January this year, up from around 15,000 during the same period a year ago, according to figures from market research company GFK.

And based on sales figures from 2,800 stores in Sweden, GFK estimates that Swedes will snap up 600,000 tablet computers in 2012.

“But that was before we learned that the iPad’s 4G technology doesn’t work in Sweden,” GFK analyst Allan Pedersen told the Dagens Nyheter (DN) newspaper.

Sales of tablet computers in Sweden totalled 1.4 billion kronor ($207 million) last year, while sales of desktops stalled at 1.2 billion kronor.

In Sweden, the tablet market is still dominated by Apple’s iPad, the latest version of which is set to hit store shelves in Sweden on Friday.

While the extent of the iPad’s market share in Sweden isn’t publicly available globally, Apple has seen its near total dominance of the market fall off in the last two years as more consumers choose tablets running Google’s Android software.

At a branch of the El-Giganten electronics store in Stockholm, however, there is little doubt about which product consumers prefer.

“Our customers almost only ask about the iPad,” computer products clerk Payem Fadaei told DN.

According to the paper, stores across Sweden are bracing for the bevy of iPad shoppers expected to be clamouring to buy the latest iPad by extending their opening hours, with some shops expecting lines to form on Thursday night in anticipation of Apple’s latest tablet.

The Local/dl

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Hundreds of German banks make Apple Pay service available for first time

Photo: DPA

It’s been a year since the launch of Apple Pay in Germany, and significantly more consumers are now able to use the mobile payment service than ever before.

READ ALSO: Apple Pay finally launches in cash-loving Germany

On Tuesday, 371 out of a a total of 379 Germans savings banks made the service available for a total of 50 million customers.

Commerzbank, Norisbank, and LBBW (Landesbank Baden-Württemberg) are among the banks now offering the use of the service to their clients.

Integration of popular girocard system still in the works

As is typical for German banks, only credit cards and debit cards issued by the banks themselves can be integrated into the service.

A system which uses the very popular girocard, previously known as the EC card, is still in the works. This interbank network and debit card service connects virtually all German ATMs and banks.

The logo of the popular girocard brand, formerly know as EC-Karte. Photo: DPA.

Jennifer Bailey, the head of Apple Pay, said that the service will be integrated into the girocard system in the coming year.

Extra security

Apple Pay allows customers to pay using the iPhone or Apple Watch as if they were using a contactless card. The payment method also applies for internet purchases.

Users are able to unlock and approve the transactions through face identification or fingerprint scanning technology. Bailey emphasized that this technology ensures that the fraud rate is virtually zero with Apple Pay.

Contactless payment at the cash register relies on the NFC chip technology. NFC stands for “near-field communication,” and works by allowing various devices equipped with the technology to exchange data. Apple's Jennifer Bailey gives a presentation about Apple Pay in Cupertino, CA earlier this year. Photo: DPA.

It is especially secure due to the fact that communication between devices is only possible within about 10 centimeters.

The banks can only access the NFC via use of Apple Pay, due to Apple’s possession of the special high-security chip within their devices called the “Secure Element.”

German regulation challenges Apple’s dominance

Germany passed a law in late November that requires platform operators such as Apple to provide financial services, such as banks who use their technology, full access to the infrastructure, such as the NFC, which makes the system work in exchange for a small fee.

The law ensures that Apple’s rivals in the mobile payment market would still have access to the technology that makes it work.

The regulation is just one part of recent actions in Germany to regulate US technology companies and their market dominance.

Commerzbank was one of the banks to adopt the Apple Pay service recently. Photo: DPA.

Apple criticized the law but feels confident overall about accommodating it from a legal perspective. The company emphasized that it already provides access to the NFC chip infrastructure to financial service providers, thus meeting the requirements of the law.

“When a card is added to the Apple Wallet, banks can decide whether to use it to trigger secure payments from their own apps via NFC. No new law is necessary for that,” the statement said.

Banks ‘voting with their actions’

“Banks are voting with their actions by working with us on Apple Pay,” Bailey said of the bill, in regards to the latest additions and the development of a girocard solution. Apple’s system is still the safest way to pay with the iPhone.

“The only way to the NFC chip today is via Apple Pay,” Bailey said, expressing concern that any other system would jeopardize user data and security.

Translated by Kate Brady.

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