Internet Trends – Morgan Stanley
Mary Meeker of Morgan Stanley has been an analyst since at least 1995, covering both Netscape’s and Google’s initial public offerings (IPO). In April 2010, Meeker presented “Internet Trends,” a look at the future of the Internet through the eyes of Morgan Stanley. If you are into statistics and graphs — this is for you!
Some specifics from the presentation:
- The major point of the presentation is the “mobile will be bigger than desktop Internet in five years.” Then they go on to explain how they came to that conclusion . . . in detail.
- They propose that mobile Internet will pass desktop Internet usage sometime in 2013
- The advancement of mobile is due to the convergence of 5 trends:
- 3G – 3G penetration is expected to be 74% in North America as of 2014
- Social networking – globally, there are 859,000,000 unique users, growing 32% per year; 471,000,000 are on Facebook
- Video – as you might expect, video is driving the increase in mobile traffic; by 2014, video is predicted to be 69% of all global mobile traffic
- VoIP – if Skype were a carrier, they would be the largest carrier in the world
- Impressive mobile devices – specifically, the iPhone, iTouch, and the iTunes store. In addition, as of February 2010, the iPhone operating system (OS) had 44% of the smartphone OS market and Android had 42%.
- On worldwide networks, data is the predominant type of traffic — up to 90% on NTT docomo, the predominant mobile phone company in Japan, and up to 70% on Vodafone, the largest mobile telecommunications company.
- Mobile users are more willing to pay for instant access to services; 30% of desktop users vs 76% of mobile users. Why? Mobile commerce includes:
- Easy-to-use, secure payment systems available, e.g., iTunes
- Most content carry prices of under $5
- Much content is in proprietary system, thereby decreasing possibility of uploading pirated content
- Well-known store fronts, e.g., iTunes
This is a great read, but it takes times to understand the statistics.