Morgan Stanley: Apple in pole position in race to dominate mobile Internet computing

Apple Online Store“Apple’s iPhone was the hero of an hour-long conference-call seminar on ‘The Mobile Internet’ presented Tuesday by Morgan Stanley,” Philip Elmer-DeWitt reports for Fortune. “The report was intended to be a follow-up to Mary Meeker’s 1995 ‘The Internet Report,’ which became known as ‘the bible’ of the dot-com boom.”

Elmer-DeWitt reports, “Graphics like the one [below] charting the rapid growth of the iPhone/iPod touch/iTunes ecosystem — the fastest new-tech ramp up in history, according to Meeker’s team of 27 research analysts — dominated the 92-slide PowerPoint stack. This particular slide shows that the rate of adoption of the iPhone and iPod touch in their first nine quarters on the market outpaced NTT’s DoCoMo two-fold, Netscape five-fold and AOL eight-fold.”

“Based on past performance, according to Morgan Stanley, Apple is in the ‘pole position’ in the race to dominate mobile Internet computing, which is supposed to be for the 2000s what desktop Internet computing was for the 1990s, personal computing for the 1980s, mini computing for the 1970s, and mainframe computing for the 1960s,” Elmer-DeWitt reports. “‘Apple has a two or three-year lead’ according to Katy Huberty, thanks to an installed base of 57 million handsets, 100,000 apps and 200 million iTunes subscribers with credit card numbers on file.”

“Much of the presentation was spent showing, in slides culled from research over the past two and a half years, that the iPhone is not like previous mobile devices, and its owners not like ordinary cell phone users,” Elmer-DeWitt reports. “For example, although iPhone and iPod touch owners represent only 17% of the global smartphone installed base, they account for 65% of the world’s mobile Web browsing and 50% of its mobile app usage.”

Read more in the full article, which includes links to the 92 slides presented Tuesday by Morgan Stanley, a 659-slide key themes presentation, and the full 424-page Mobile Internet Report, here.

MacDailyNews Take: Bloodbath.


  1. @HMCIV, totally agree. The first chart looks impressive, and good on Apple for creating a killer device (I have an iPhone myself), but the chart is about as useful as Microsoft saying adoption of Windows 7 was much faster than adoption of Windows 95.

  2. @HMCIV Your are right about the internet being new to the public and limited. However it was exciting to do something with your computer other than business work. The fast adaption of the internet is what drove business in the 90’s. That is the point. What will be the new hot business of the next decade. Netscape and AOL made the masses want to use a existing technology, the iPhone is what has made people want to use mobile internet. Mobile internet will be the hot business of the twenty teens, hop on now. It is taking off faster than expected, that is the point for investors.

  3. @fandango,

    “”If I were running Apple, I would milk the Macintosh for all it’s worth — and get busy on the next great thing. The PC wars are over. Done. Microsoft won a long time ago.”
    — Fortune, Feb. 19, 1996″

    right and wrong… the iPhone and iPod are the next great thing,…. but notice how they work so well with the Mac……. Maybe PC WWI is over and the PC won…. but now its PCWWII. And the Mac is Back. With a vengence.

    Just a thought.

  4. check out the whole Morgan report. there is a lot of very interesting stuff in there. their conclusion that Apple holds a “pole position” is well put – the preliminary heats are over and Apple has an advantage, but the main event is just getting underway. nothing at all is certain.

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