The Mobile Internet Report Key Themes*

Ramp in High-Speed* Wireless Internet-Enabled Devices –
Global Shipments Expected to Remain Strong
(All metrics in millions, except growth rates) 2006E 2007E 2008E 2009E 2010E 2011E 2012E 2013E 08-13E CAGR
Total Internet Enabled Wireless Devices**
291 434 592 686 893 1,114 1,309 1,503 20%
Y/Y Growth 40% 49% 36% 16% 30% 25% 17% 15%
Total 3G-Enabled Devices 135 219 319 385 548 708 843 990 25%
Y/Y Growth 89% 62% 45% 21% 42% 29% 19% 17%
Total Wi-Fi Enabled Devices 171 252 328 387 486 633 817 1,039 26%
Y/Y Growth 21% 47% 31% 18% 26% 30% 29% 27%
Wireless Stationary Internet Terminals (SIT) (1) 34 51 60 57 67 66 64 62 1%
Y/Y Growth -81% 52% 18% -6% 17% -1% -3% -3%
Gaming Consoles 29 47 56 51 58 54 48 42 -5%
Y/Y Growth -4% 60% 18% -9% 14% -7% -11% -12%
Home Appliances 4 4 5 6 9 12 16 20 33%
Y/Y Growth 10% -2% 12% 30% 42% 40% 30% 25%
Portable Internet Devices (PID) 81 109 146 171 207 265 325 376 21%
Y/Y Growth -- -- 34% 18% 21% 28% 23% 15%
Notebook PCs 81 108 127 131 152 183 218 247 14%
Y/Y Growth 28% 34% 18% 3% 16% 20% 20% 13%
Netbooks -- 0 16 34 40 49 58 63 32%
Y/Y Growth -- -- 5067% 118% 20% 20% 20% 8%
Internet Tablets (2) -- -- 1 2 8 24 36 49 117%
Y/Y Growth -- -- -- 100% 300% 200% 50% 35%
Embedded / Other Devices (3) -- 1 2 4 7 10 13 17 53%
Y/Y Growth -- -- 100% 100% 65% 45% 35% 30%
Wireless Pocketable Devices (WPD) (4) 177 274 386 457 619 783 920 1,065 23%
Y/Y Growth 60% 55% 41% 19% 35% 27% 17% 16%
3G-Enabled Smartphones (5) 32 61 92 131 205 316 491 656 48%
Y/Y Growth 99% 91% 51% 42% 56% 54% 55% 34%
Wi-Fi Enabled Smartphones 15 37 56 87 141 226 351 526 57%
Y/Y Growth 200% 150% 52% 55% 63% 60% 55% 50%
% of Total Smartphones 18 30 36 46 55 64 72 80
Wireless Multimedia Players (6) 42 54 66 72 71 76 77 75 2%
Y/Y Growth 8% 30% 22% 8% -1% 6% 2% -2%
3G-Enabled Feature / Basic Phones 103 158 227 255 343 392 352 334 8%
Y/Y Growth 86% 54% 43% 12% 35% 14% -10% -5%
Note: * High-speed = download speed of 512Kbit/s or above, generally includes all 3G / Wi-Fi devices, excludes GPRS / CDMA1x / EDGE devices. ** Total 3G and Wi-Fi enabled devices do not add up
to total Internet enabled wireless devices as many smartphones contain both Wi-Fi and 3G chips. 1) Include wirelessly connected game consoles and home appliances such as TV, Roku, VUDU,
phones, refrigerators, etc.; 2) Internet tablets include 8-10 inch devices such as the eBook readers, large screen media players and Apple tablets; 3) Embedded / other devices include wireless personal
navigation devices, standalone cameras / video cameras; 4) Include all connected devices that fit into your pockets and that were intended to be carried around at all times; 5) We define smartphone as
a) runs on an operating system; b) has Internet / email access; c) supports advanced functions like music, video, gaming, pictures, browsing, and messaging (some support navigation + mobile TV) and
d) provides a standardized interface and platform for application developers. 6) Include Wi-Fi enabled small screen media players like the iTouch, handheld gaming devices such as the Nintendo DS /
Sony PSP; Source: Morgan Stanley Research global estimates.
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