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Charts (Sort of) Prove What We Already Knew: iPhone Pwns!

Microsoft’s (s msft) Windows 7 is released yesterday, and the boys and girls at Redmond are probably feeling very pleased with the news that pre-orders on Amazon (s amzn) for its latest OS have broken records. Windows 7 is now the biggest pre-order product in Amazon’s history.

Not to be outdone, Apple is busy breaking records too. At the Web 2.0 Summit this week, Morgan Stanley’s Managing Director Mary Meeker revealed that the iPhone/iPod touch is the fastest growing consumer electronics platform in history. And she had some charts to prove it. TechCrunch’s Erick Schonfeld picked through her 60+ page presentation to focus on three iPhone-relevant slides.

Mary Meeker - iPhone Platform Adoption

Catchy title, no? But impressive. The iPhone/iPod touch has seen far steeper user adoption than that of other popular consumer electronics platforms, including other iPods.

However, Gizmodo’s Dan Nosowitz very wisely points out:

Comparing one gadget to another in a different category is messy and inconclusive. iPhone adoption is different than, say, Wii adoption for lots of reasons: The iPhone is a phone, a gadget which pretty much everybody has and needs, and it combined the capabilities of a phone with that of an established hit, the iPod. In contrast, the Wii is a videogame system, a category with a totally different demographic, requiring different kinds of software and accessories. They’re just not the same (and I only mentioned a couple reasons), and comparing unit shipments doesn’t necessarily prove anything.

Mary Meeker Mobile Internet Adoption

A slightly busier one, this illustrates how, in the two year period following its launch, the iPhone/iPod touch’s mobile internet user base has enjoyed a faster, higher adoption rate (57 million) than NTT Docomo’s mobile internet platform imode (25 million) and even desktop Internet legend AOL (7 million).

Of course, it’s important to remember that Apple benefits (at least a little) from the changing times. Both AOL and imode enjoyed their super-growth in the mid to late 1990’s — the Internet’s Stone Age. While the iPhone platform is undoubtedly sophisticated, it takes advantage of extraordinary advances in hardware and software engineering that, a decade ago, were merely the stuff of geek dreams. Also, let’s not forget that — relative to the Internet’s ubiquity and sophistication today — the mobile and desktop Internet of the 90’s was far more expensive, harder to use and much less rewarding of an experience. Still, these are impressive numbers nonetheless. It’s just helpful to put them into perspective.

Mary Meeker ATT Data Traffic

If you want a chart that demonstrates just exactly why AT&T’s (s att) network is trembling at the knees beneath the strain of millions of data-hungry iPhones, look no further. Schonfeld added two arrows to pinpoint the June 2007 and July 2008 launches of, respectively, the iPhone and iPhone 3G. If you’re an iPhone owner and you don’t spend more time using the thing for email and web browsing than, y’know, actually talking to people, you’re in the minority. iPhone owners love their unlimited data.

You can bet your bottom dollar Steve’s next keynote presentation will extrapolate some of this data (of course, his charts will contain no numbers but look way more sexy).

View or download the entire presentation from Scribd, and tell me in the comments how no one uses the word “Pwns” any more.

13 Responses to “Charts (Sort of) Prove What We Already Knew: iPhone Pwns!”

  1. J.M. Heinrichs

    The iPod touch is a dedicated MP3 player only to those who are ignorant of the device’s characteristics. Being ill-informed is odd but not unexpected. The touch a Pocketable Internet Device with MP3 capabilities. Mine have been ‘roaming’ since Sep 07. And the internal bits of the touch are often better than those of the iPhone.

    The touch is also useful for amusing young children with things such as ‘games’ and ‘puzzles’, and can run a variety of ‘productivity’ apps. None of which are generally associated with “dedicated MP3 players”.


    • See, this is where my confusion is. I tend to group products by their primary function. I don’t refer to a microwave as a clock, a zune as a mobile internet device, or a smartphone as an mp3 player. Apple sells the itouch as an mp3 player and the iphone as a phone, but yes they both have secondary functions many of which they excel at.

      My question is where to consumers draw the line when catagorizing devices and my concern is where do analysts draw the line? I am just concerned with analysts grouping primary function devices with secondary function devices. The issue not being with the overall results of this report, but rather concern for the slippery slope such a grouping creates.

  2. Well, I think it’s quite obvious why the iPhone and the iPod touch are grouped together, and the Wii, DS is not.

    They have the same formfactor, cpu and memory, and have the same OS, software and features (more or less).

    The Wii and DS, are not very alike and are marketed to two completely different segments (DS for kids, and Wii for teens and up).

    Which is also why iPods are in its own group (because its is nothing like the iPhone and iPod touch).

    But you guyz already knows all this, right? I think you just have a hard time facing the facts.

    • So a phone and an mp3 player are pretty much the exact same thing? Not even worth trying to argue that. My problem is they grouped them together when they didn’t group differing products made by other companies together. This in my mind shows severe negligence on the part of whoever put this together.

      I believe they could have not grouped the itouch with the iphone and received the same conclusion that the iphone is the fastest growing consumer electronic. It seems obvious that it is, so why group the itouch and iphone together?

    • Thanks Nashgul,

      Brett needs to go to an Apple Store. He is clueless on these two Apple devices.
      Again, the two are going after the same market “They have the same formfactor, cpu and memory, and have the same OS, software and features (more or less).” And most important, can run the same apps, except for the GPS 3G phone apps.

    • Please enlighten me then cc. Where does one draw a line between devices? What test would be used to place a phone and a dedicated mp3 player in the same market as you say they are. And if I recall the iphone and itouch have only recently recieved the same CPU, Memory, and form factor so for a vast majority of the data those criteria did not match. In that case they only had the same OS and some of the same features.

      Maybe I am just that odd consumer that sees a difference between a phone and a dedicated mp3 player. I am sure many consumers enter a store wanting a phone and walking out with a mp3 player and vice versa…

  3. you are right Brett.

    Nintendo could combine, and on the Nintendo logic…it would be more prudent to combine the iPod and the iPod Touch over the iPhone. With those categories the iPhone would be even farther below Nintendo.

  4. Did this presentation combine the sales of the iphone and itouch and treat them as one? Seems like that would really scew the results. Why didn’t she just combine the nintendo wii and ds results into one then nintendo would be on top. Maybe I am just looking at it wrong.