The Mobile Internet Report Key Themes*

Amazon.com – Online Shopping Experience / Logistics
Leadership Has Driven $58B in Wealth Creation Over 15 Years
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009E
Revenue ($MM) $16 $148 $610 $1,640 $2,762 $3,122 $3,933 $5,264 $6,921 $8,490 $10,711 $14,836 $19,166 $23,694
Y/Y Growth -- 839% 313% 169% 68% 13% 26% 34% 31% 23% 26% 39% 29% 24%
Media -- -- -- -- $2,176 $2,456 $3,099 $4,049 $5,102 $5,931 $7,066 $9,243 $11,083 $12,307
EGM -- -- -- -- $481 $594 $747 $1,103 $1,686 $2,329 $3,361 $5,209 $7,541 $10,748
Other -- -- -- -- $104 $73 $87 $112 $133 $230 $284 $384 $542 $639
Operating Income ($MM) -$6 -$32 -$61 -$352 -$317 -$45 $180 $361 $490 $559 $501 $849 $1,094 $1,495
Margin (%) -38% -22% -10% -21% -11% -1% 5% 7% 7% 7% 5% 6% 6% 6%
Active Customers (MM) -- -- -- 14 20 25 31 39 47 55 64 76 88 101
Revenue per Customer ($/yr) -- -- -- $116 $139 $126 $127 $133 $147 $154 $167 $195 $218 $234
Market Capitalization ($B) -- $1 $17 $26 $6 $4 $7 $21 $18 $20 $16 $39 $22 $58
Market Cap per User ($) -- -- -- $1,863 $281 $163 $236 $537 $386 $357 $255 $507 $249 $575
Note: Amazon.com became a publicly-listed company on 5/17/97. EGM is Electronics and other General Merchandises.
Market capitalization data are year-end values per FactSet, 2009E data as of 12/08/09. Source: Amazon.com, FactSet,
Morgan Stanley Research.
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