Apple seen in 'pole position' to control mobile Internet computing

Posted:
in iPhone edited January 2014
The platform of the iPhone, iPod touch and iTunes has seen the fastest rate of adoption of any new technology in history, a new study has concluded.



In its first nine quarters on the market, the iPhone and iPod touch significantly outpaced Netscape, AOL and NTT's DoCoMo. Mary Meeker and a team of analysts at Morgan Stanley believe this shows Apple has a lead of two or three years over its competitors in the mobile Internet space.



The figures and predictions were the highlight of a presentation this week from Morgan Stanley called "The Mobile Internet." Philip Elmer-DeWitt of Fortune Brainstorm Tech summarized the seminar, which focused on the rapid rate of adoption seen by the iPhone and iPod touch platform.



After 9 quarters, the iPhone and iPod touch have reached an install base of 57 million users. By that same point, DoCoMo had achieved 25 million users, Netscape 11 million, and AOL just 7 million. Apple's platform has also outpaced the debuts of game consoles like the Nintendo Wii, Nintendo DS and Sony PSP.



The presentation included a number of incredible statistics: Though the iPhone and iPod touch represents just 17 percent of global smartphones, the two devices are responsible for 65 percent of handheld Web browsing, according to Net Applications, and half of all mobile app usage, according to AdMob. Compare that to Nokia's Symbian platform, which has 45 percent of all mobile devices, but just 7 percent of the Web share.







The Morgan Stanley presentation goes on to define the future of the mobile Internet as the overlap between social networking and mobile devices. More specifically it is the "sweet spot," as Elmer-DeWitt called it, where the 430 million Facebook users (and their 350,000 applications) overlap with the 57 million iPhone users (and their 100,000 applications).



It demonstrates a trend shown with Mixi, Japan's leading social network, which has seen its monthly page views become dominated by mobile devices. As of the third quarter of 2009, 72 percent of Mixi visitors accessed the site via a handheld device.



The 2000s are predicted to mean for the start of mobile computing what the 1990s were for the Internet age. With so many devices in people's pockets and 200 million iTunes subscribers ready to buy applications and media content, Apple is in the "pole position" to lead the mobile computing race, the report concluded.







While the iPhone gets most attention, the iPod touch has become a significant portion of the mobile Internet market, and an integral part of Apple's iPhone OS strategy. Earlier this month, one report found that the iPod touch has been gaining in share of mobile device usage, at the expense of the iPhone. It is estimated that about 40 percent of iPhone OS users are on the iPod touch.



As iPod touch users are also likely to have an iTunes account to buy applications and media, the youth who use the mobile device are seen as likely to eventually migrate to Apple's "premium" iPhone as they get older. This further ties them into the Apple ecosystem, and would fuel the company's growth in the mobile Internet space.
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Comments

  • Reply 1 of 70
    So what else is new?
  • Reply 2 of 70
    ajitmdajitmd Posts: 365member
    Can Apple control the mobile web space $$$ within its devices? In other words, will Apple be to get the advertising dollars from its apps and mobile web... or will Google be able to freeload and suck the ad dollars? What about e-commerce dollars?
  • Reply 3 of 70
    Apple is positioned nicely. "One Year Later. Light years ahead"



    Me
  • Reply 4 of 70
    ajitmdajitmd Posts: 365member
    It makes sense for Apple to develop some kind of search engine for the iPhone and the Touch as well as its own mobile apps. The big problem is that Google got a lot of content now, like books, etc plus maps.



    Apple will have to end up making MobileMe free and support with advertising and add other features like Google.
  • Reply 5 of 70
    "As iPod touch users are also likely to have an iTunes account to buy applications and media, the youth who use the mobile device are seen as likely to eventually migrate to Apple's "premium" iPhone as they get older. This further ties them into the Apple ecosystem, and would fuel the company's growth in the mobile Internet space."



    Debatable. As an "older" person, I have a Touch and a cell phone. I have no interest in being tied to a monthly plan, locked phones and ATT. The Touch is the answer to the mess in US cellular (standards, coverage, subsidized plans at egregious rates and crap providers).



    There's no shortage of money within our circle of friends or family. Yet, the only iPhone users are two of my sons. Eight of us use a Touch (of which 7 are "older" persons).



    So much for Wall Street analysts and the ad industry.
  • Reply 6 of 70
    Quote:
    Originally Posted by MobileMe View Post


    Apple is positioned nicely. "One Year Later. Light years ahead"



    Me



    It is pretty amazing how far Apple has come, isn't it? A little over two years and Apple is defining the whole game and pushing everyone else ahead in the process.
  • Reply 7 of 70
    Quote:
    Originally Posted by Eye Forget View Post


    Debatable. As an "older" person, I have a Touch and a cell phone. I have no interest in being tied to a monthly plan, locked phones and ATT. The Touch is the answer to the mess in US cellular (standards, coverage, subsidized plans at egregious rates and crap providers).



    Not debatable.



    And like you I'm an "older" iPod touch user.



    However, this isn't about your particular situation. Statistics represent an aggregate view of the marketplace, not a given person's particular situation (like yours or mine).



    Other studies have shown that the average iPod touch is younger (16-24) than the average iPhone user (25-40). Just search the Web, the studies are available to view.



    I agree that the iPod touch does provide a lot of functionality without getting into the morass of egregious U.S. cellular rates. However, you are still burdened by standards, coverage, and crap providers, just like I am with my Pay-As-You-Go prepaid dumbphone on the T-Mobile network.
  • Reply 8 of 70
    tundraboytundraboy Posts: 1,617member
    This is why Microsoft is quaking in its boots. All along they thought search was the ebola-like threat looming on the horizon. More and more it looks like it's mobile computing.



    MS can totally fail in search and they will still sell millions upon millions of Windows licenses. Mobile computing however is the real threat because as mobile devices get more and more powerful, people will start to turn away from laptops and desktops and just rely on their Gen 6 iPhones.



    Don't people still want a computer to do large-screen stuff on? Sure. They'll go home, wirelessly connect their iPhone to the screen, keyboard, mouse, and printer in their home office and work away. No Windows in this equation.
  • Reply 9 of 70
    mark2005mark2005 Posts: 1,158member
    Quote:
    Originally Posted by Eye Forget View Post


    "As iPod touch users are also likely to have an iTunes account to buy applications and media, the youth who use the mobile device are seen as likely to eventually migrate to Apple's "premium" iPhone as they get older. This further ties them into the Apple ecosystem, and would fuel the company's growth in the mobile Internet space."



    Debatable. As an "older" person, I have a Touch and a cell phone. I have no interest in being tied to a monthly plan, locked phones and ATT. The Touch is the answer to the mess in US cellular (standards, coverage, subsidized plans at egregious rates and crap providers).



    There's no shortage of money within our circle of friends or family. Yet, the only iPhone users are two of my sons. Eight of us use a Touch (of which 7 are "older" persons).



    So much for Wall Street analysts and the ad industry.



    Today, the 8 of you are fine with accessing the Internet only when in range of a hotspot, and that's great.



    But the trend is toward apps/services that create a desire for access at any time, at any place. As that happens, the question is whether the cellular (including 4G) or wifi (outside of your home/work) or both will become the access medium for which you pay. And when you throw in that "at any place" could include on-the-move, which wifi can not yet handle ....



    There are hybrid solutions and other methods, such as the MiFi devices (which are really cellular), but they still involve plans at egregious rates.
  • Reply 10 of 70
    jroyjroy Posts: 27member
    Quote:
    Originally Posted by Eye Forget View Post


    "As iPod touch users are also likely to have an iTunes account to buy applications and media, the youth who use the mobile device are seen as likely to eventually migrate to Apple's "premium" iPhone as they get older. This further ties them into the Apple ecosystem, and would fuel the company's growth in the mobile Internet space."



    Debatable. As an "older" person, I have a Touch and a cell phone. I have no interest in being tied to a monthly plan, locked phones and ATT. The Touch is the answer to the mess in US cellular (standards, coverage, subsidized plans at egregious rates and crap providers).



    There's no shortage of money within our circle of friends or family. Yet, the only iPhone users are two of my sons. Eight of us use a Touch (of which 7 are "older" persons).



    So much for Wall Street analysts and the ad industry.



    What you say may be true for many people, but I believe that, for those who are willing to pay for the expensive cell phone plan associated with a smartphone, an iPhone will seem like the natural choice instead of a Blackberry, Symbian or Android phone. A smartphone is particularly useful as a way to use work email when away from the office. So I expect to see Blackberry as the long-term loser to the iPhone in the workplace.
  • Reply 11 of 70
    mark2005mark2005 Posts: 1,158member
    Quote:
    Originally Posted by tundraboy View Post


    Don't people still want a computer to do large-screen stuff on? Sure. They'll go home, wirelessly connect their iPhone to the screen, keyboard, mouse, and printer in their home office and work away. No Windows in this equation.



    Especially when their most used apps reside in the cloud...
  • Reply 12 of 70
    boogabooga Posts: 1,077member
    I could be wrong, but I thought that RIM and Blackberry used a proxy server for their web access that compressed all data going to the handheld?
  • Reply 13 of 70
    Quote:
    Originally Posted by Quadra 610 View Post


    It is pretty amazing how far Apple has come, isn't it? A little over two years and Apple is defining the whole game and pushing everyone else ahead in the process.



    Your right Quadra, and I hope the industry watches and takes note (not just photocopy ) that if you truly innovate or revolutionize, then your success will be ahead of what others have been trying to do for decades.



    Apple understands it's target audience and the success of all it's current offerings are proof of that.



    BMW had a sweet advertisement a few years back. "When you set the bar, you sometimes have to raise it"





    APPLE IS THE INDUSTRY STANDARD
  • Reply 14 of 70
    Quote:
    Originally Posted by MobileMe View Post


    Your right Quadra, and I hope the industry watches and takes note (not just photocopy ) that if you truly innovate or revolutionize, then your success will be ahead of what others have been trying to do for decades.



    Apple understands it's target audience and the success of all it's current offerings are proof of that.



    BMW had a sweet advertisement a few years back. "When you set the bar, you sometimes have to raise it"





    APPLE IS THE INDUSTRY STANDARD



    What have others been trying to do for years, attract social losers that have nothing better to do but stream music and check their facebook 3 million times a day? Thats about all this shows. There isn't anything in this article about innovation its about the surfing habits of the average iPhone/Touch user which we all know is obsessive.



    Maybe this article should read Apple in pole position of having the most losers checking their facebook at the same time while streaming Pandora and not getting any real work done.
  • Reply 15 of 70
    Quote:
    Originally Posted by extremeskater View Post


    What have others been trying to do for years, attract social losers that have nothing better to do but stream music and check their facebook 3 million times a day? Thats about all this shows. There isn't anything in this article about innovation its about the surfing habits of the average iPhone/Touch user which we all know is obsessive.



    Maybe this article should read Apple in pole position of having the most losers checking their facebook at the same time while streaming Pandora and not getting any real work done.



    Your Ban has been lifted and you still just don't get it. Welcome back.
  • Reply 16 of 70
    Quote:
    Originally Posted by MobileMe View Post


    Your Ban has been lifted and you still just don't get it. Welcome back.



    You think something like a three day ban is going to stop me from giving my opinion... I was just giving you a bit of a hard time. However I do see this as more about the habits of a certain demographic rather then it having anything to do with Apple itself.



    The iPhone/Touch is without a doubt the best mobile browsing device around I would say the Droid comes in second but certainly doesn't have the following the iPhone has at this point. May never have that following its too soon to tell how well its going to do.



    I think its a bit of a stretch that people will start docking their iPhone at home and using it as a home computer
  • Reply 17 of 70
    It's all about the usablilty. People use these devices more because they're a pleasure to use. It doesn't matter how many "features" the device has, if it's frustrating to use them. I have been a BlackBerry user for 4+ years and an iPhone user for about 1.5 years--my company supplies the BlackBerry, but I supply my own iPhone, and I usually leave the BB at home if I don't absolutely need it for something--it's just a pain to use. This is subjective to some degree, of course.



    I also know a few people who got an iPod Touch and then pretty quickly decided they needed the phone. It's a gateway drug.
  • Reply 18 of 70
    Just thought I'd add an update to what's going on here in Europe. The iPhone is a tremendous hit here in Germany (T-Mobile), and the halo effect around it is blinding. Within this year alone, I have only 2 people in my close circle of friends, that haven't bought an Apple device of one kind or another; MBP's, iPhones, iTouches, iMacs.



    A close friend just came by this afternoon to show his new iPhone... didn't even tell me he was gettin' one. This is a non-tech, "I-have-to-use-Windows-because of business" guy! Now he's "stating", (opposed to asking whether he should), that he's getting the 15-MBP right after Xmas.



    You also have to take into account that we don't have Apple Stores here (only 3: Hamburg, Berlin, Munich) and Apple doesn't do very much advertising. It really is marketing by word-of-mouth... or from within the traditional Apple strong-holds in print and design agencies.



    All in all, Apple is seriously rollin'... at least in Germany.



    PS: really is too bad about the AT&T relationship in America. After reading the whole debate surrounding AT&T, Verizon, etc., I can only conclude that America's entire telecom industry needs an overhaul and fast.
  • Reply 19 of 70
    MacProMacPro Posts: 18,292member
    What is amazing to me is the graphs lump all other smart phones together and they still get trounced by Apple.
  • Reply 20 of 70
    Quote:
    Originally Posted by extremeskater View Post


    You think something like a three day ban is going to stop me from giving my opinion... I was just giving you a bit of a hard time. However I do see this as more about the habits of a certain demographic rather then it having anything to do with Apple itself.



    The iPhone/Touch is without a doubt the best mobile browsing device around I would say the Droid comes in second but certainly doesn't have the following the iPhone has at this point. May never have that following its too soon to tell how well its going to do.



    I think its a bit of a stretch that people will start docking their iPhone at home and using it as a home computer



    I didn't take offense xTremeS. Your style of opinion is needed in forums, to give it spark at times, even Teckstuds style is childish at times, but he does make good points. Though like a child, he needs to be grounded when acting out of place



    I will agree that droid does come second, with a mobile browsing experience. Google just lacks the Lust factor (for lack of a better word) that Apple creates. Plus Apple always finds a way to give us features we didn't know we needed (i.e. compass app, trimming a video clip & and on the back end providing excellent API's for developers, I just read that Apple is working on the "PastryKit Framework" that will work to enhance iPhones Web App interactivity. Very exciting indeed. I can't wait for WWDC2010. If this new Framework gets released to the public then
    Quote:

    I think its a bit of a stretch that people will start docking their iPhone at home and using it as a home computer



    may actually not be a bit of a stretch after all . Stayed Tuned "The Best is yet to come"
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