The Mobile Internet Report Key Themes*

Wi-Fi Enabled Devices to Grow at ~20% CAGR to 2013E –
Smartphones Drive Growth as Wi-Fi Becomes Standard Feature
864MM Wi-Fi Enabled Devices in Use in 2008, Likely to Reach 2B+ by 2013E – We forecast
Wi-Fi enabled device shipments (excluding routers / access points) will grow at a 19% CAGR to
747MM in 2013E, up from 319MM in 2008E, benefitting companies like Broadcom / Atheros…
Pocketable / Mobile Internet Devices Driving Growth – Among all Wi-Fi enabled devices, we
expect particularly strong growth to come from Internet tablets (+82% CAGR to 20MM units in
2013E), Wi-Fi enabled smartphones (+44% CAGR to 350MM units in 2013E), netbooks (+25%
CAGR to 37MM units in 2013E) and emerging categories such as embedded consumer
electronic devices (cameras, video cameras…).
Wi-Fi to become standard on smartphones – By 2013E, we estimate 80% of total smartphone
shipments may have Wi-Fi, up from 40% of smartphones sold globally in 2008.
Auto-authentication improves handoff between Wi-Fi 3G network – AT&T supports autoauthentication
on the iPhone (introduced CQ2:09, with iPhone OS 3.0), a software upgrade
allowing users to seamlessly switch between 3G and Wi-Fi networks without being prompted –
enables broadband coverage on whichever network is more reliable in a given location.
High speed + wide availability improves mobile device user experience – 74% of people who
had Wi-Fi on their mobile phone used it / 77% of Wi-Fi enabled mobile phones users were
completely / very satisfied with their devices - a higher rate of satisfaction than reported by
users of mobile phones without Wi-Fi, per ABI Research, 3/09.
Source: ABI Research, Informa, Morgan Stanley Research.
454