By: Angela Soric
According to a report conducted by Morgan Stanley, Apple is 2-3 years ahead of the competition. Even though the iPhone and iPod touch represent 17 percent of global Smartphones, these two devices are responsible for 65 percent of all mobile Internet usage.
“Apple has a two or three-year lead” according to analysts, thanks to an installed base of 57 million handsets, 100,000 apps and 200 million iTunes subscribers with credit card numbers on file.
In a span of 9 quarters, Apple has achieved an install base of 57 million; surpassing companies such as Netscape, AOL and DoCoMo.
Morgan Stanley analyst Katy Huberty, foresees the possibility of Apple’s stock reaching $325 to $435 in the next 12 months. However, she believes this can only be achieved if certain criteria are met. Huberty suggests the following:
- Broadening phone distribution to take 10 percent of global share and a third of the Smartphone market by FY2012.
- Adoption of cheaper hardware and subscription plans so that Apple could take 15 percent of cell phones and 50 percent of Smartphones during FY2012.
- Possible abandonment of carrier subsidies so Apple can rely on content and services for profit.
The pie chart below shows that the average American cell phone user spends 40 minutes a day on a mobile phone, making calls 70% of that time. The average iPhone user, by contrast, spends 60 minutes on the device but makes calls only 45% of the time. The rest of those 60 minutes are spent texting, e-mailing, listening to music, playing games and surfing the Web.
