The Mobile Internet Report Key Themes*

Users / Developers / Apple =
Likely to Benefit from iPhone App Ecosystem’s Network Effects
Network Effect is a positive change in the benefit, or surplus, that a user derives
from a good or service when the number of other users consuming the same
kind of good or service increases.
Better Economics
Attract More Developers
to the iPhone Platform,
Creating More Apps .
.
Rising Number of
Available Apps (65K+)
Increases Consumer
Choice
More Downloads
Leads to Higher
Profitability for
Developers
.
.
More Apps Drive More
Consumers To Purchase
iPhones (26MM+) and
Download iPhone Apps
(1.5B+)
Note: Network Effect may also be referred to as “positive network externalities.” Source: Morgan Stanley Research.
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