The document analyzes the success of the iPhone and what it revealed about the future of mobile phones. It summarizes that the iPhone was very successful due to its large touchscreen, ease of use, and ability to access the full, uncensored internet experience like on a PC. This shifted users away from previous mobile internet experiences that were limited in bandwidth and customized portals, and towards viewing the mobile internet and the iPhone as a ubiquitous internet device.

4. Evolution of Mobile Phones

5. State-of-the-Art Terminal Radio & Television News, Feb. 1953, p. 32

6. Terminal Evolution N-series Smartphone AMPS subs. Set Car phone Model 500 Desk phone Terminal Phone calls Info manager SMS/E-mail Web browser MP3 player Makes calls Receive calls Makes calls Receive calls Functions Handset, LCD, 200 MHz ARM9, 0.06-4.0 gb RAM Handset, dial, 2 MHz Intel 8080 Handset, rotary dial, wire Bill of materials 2007 1978 1949-1969 Date Nokia AT&T West. Electric Firm

8. The Pre-iPhone “Mobile Internet”

11. Smartphones: then & now QWERTY : thumb, slideout or virtual Numeric (T-9) Keyboard 8 Gb 2 Mb RAM 480x320 color 160x160 B&W Screen HSDPA, EVDO: 1 mbps CDPD, i-mode: 5-10 kbps [GPRS: 50 kbps] Bandwidth 2008 1998

12. Reach vs. Richness (2001) Source: Jeffrey L. Funk, The Mobile Internet, 2001 Rich Media Wide Reach US, EU: full Internet, very expensive Japan: limited Internet, mass market

14. Mobile value chain (2002) Source: Hermant Sabat, Telecommunications Policy, Oct. 2002.

16. Apple’s iPhone Concept

18. iPod Ecosystem (2007) Fox, MGM, Universal, Disney … Music Video Hardware Performers Composers Sony BMG EMI Universal Warner “ Indies” Component Makers iTunes Store iPod Producers Complements Accessory Makers

19. iPhone Ecosystem (2008) iPhone 3G applications Video Music Software Hardware iPod content Component Makers iTunes Store iPod Complements Accessory Makers

20. Success of the iPhone

21. iPhone 1.0 and 2.0 70 App store, web apps UMTS, Wi-Fi iPhone 3G (7/2008) 4 Web only EDGE, Wi-Fi iPhone (6/2007) Countries Apps Network

23. Smartphone market share Platform 2006 2007 2008 Symbian 67% 63.5% 52.4% Windows 14% 12.2% 11.8% Blackberry 7% 9.6% 16.6% iPhone - 2.7% 8.2% Source: Canalys (2007), Gartner (2009)

26. The iPhone App Store

27. iPhone App Store 30,000 15,000 10,000 3,000 550 Available apps 0.1b Sept 2008 1.0b April 23 0.5b Jan 2009 0.3b Dec 2008 0 July 2008 App downloads

28. Top 40 apps As reported by Apple April 2009 (may be US only) 2 Web 2.0 2 Utilities 8 Internet services 6 2 Entertainment 14 8 Games Top 20 paid apps Top 20 free apps

31. Discussion

38. Thank you… Joel West http://www.JoelWest.org/blogs Michael Mace http: // mobileopportunity.blogspot.com