The Mobile Internet Report Key Themes*

Game-Changing Communications / Commerce Platforms
(Social Networking + Mobile) Emerging Very Rapidly
Change led by Facebook + Apple iPhone / iTouch – Rapid user / usage growth for Facebook
and Apple iPhone / iTouch, combined with relatively easy-to-use developer / distribution /
monetization platforms, has helped create two extraordinarily vibrant, and symbiotic ecosystems
with networking effect attributes.
Social networking platform evolutions driving consumer online usage / communication channel
changes – Web portals / ecosystems for personalized communication / infotainment provide
opportunities for advertisers / vendors to get in between user conversations on PCs + mobiles.
Facebook is clear market leader in terms of: 1) users (430MM, +137% Y/Y in 10/09 per
comScore global); 2) third party developers / partners (1MM+, +150% Y/Y in 7/09 and 3)
application vibrancy (350K apps, +10x Y/Y; 500MM+ cumulative downloads as of 9/09)
Mobile Internet platform evolutions driving consumer online / mobile usage changes – Mobile
ecosystems for all sorts of uses provide opportunities for advertisers / vendors to tap new
‘always on / always there’ communication / distribution channel. Apple is clear market leader in
terms of user engagement (57MM iPhone / iTouch users, +163% Y/Y in CQ3 ) and third party
developers (125K developers worldwide, 100K apps, 2B+ downloads).
Innovation + growth create a virtuous cycle – Services derived from these ecosystems will
continue to accelerate secular changes in communications + commerce, creating opportunities /
dislocations.
Note: * Facebook app downloads include top 100 app monthly active users; iPhone app downloads include upgrades; iPhone SDK
has been downloaded 250K+ times as of 6/08. Source: Facebook, Apple, AppData, 148Apps.biz, Morgan Stanley Research. 304