One of the smartest people covering our industry is Mary Meeker, formerly of Morgan Stanley and currently with VC giant Kleiner Perkins. This week she gave a major presentation at the Web 2.0 summit and as usual, here material is stellar and significant.
Here is the link to the presentation itself and in this post I want to highlight a couple of her observations.
In slide 6 Mary points out that the top Internet properties by global monthly unique visitors are, Google with 1.1 billion, Microsoft with 850 million, Facebook, with 775 million and Yahoo with about 700 million. Interestingly by her account, Apple only gets about 300 million unique global users and China’s Baidu, the largest search engine in China, records just about 210 million per month.
From these charts you can see that the real power brokers are Google and Microsoft and along with Facebook and Yahoo they have the most influence through the Internet around the world. With this type of power, comes significant responsibility. These are huge numbers and you can see why the battle between Microsoft and Google is so fierce. Ultimately, these eyeballs translate into billions of dollars in quarterly earnings and keeping this type of momentum with consumers is critical for all of these companies growth. One really interesting note to this is what if Baidu buys Yahoo. Jack Ma, CEO of Baidu has stated he wants to buy Yahoo and merge it with Baidu. If that happened, could a Chinese company become the biggest Internet player influencing the Internet World? This is one to watch.
In slide 7, she points out that China added more Internet users than exist in the USA.
Another interesting data point is in slide 8 where she shows how many hours are spent on social networking sites per month in certain countries. Israel leads the pack with 11.1 hours, followed by Argentina with 10.8 hours, Turkey 10.3 hours and Chile at 10.2 hours. And the USA is last on her list at 6.8 hours per month.
On slide 13, she shows that smart phones have surpassed feature phone shipments in W. Europe. But in slide 14 she puts this into perspective by pointing out that there are 5.6 billion mobile phone subscribers WW and that only 835 million have smartphones. The upside in smart phone growth will be spectacular. In fact, in our research projections we believe that by the end of 2102, 65% of US cell phone users will have smartphones and by 2015, 65% of WW users will have smartphones.
In slide 17 she gives the numbers to show that at the moment the smartphone and tablet market is a two-horse race. To date, cumulatively, Apple has shipped 129 million iPhones while Google has shipped 152 million Android Phones. At the moment, Apple has shipped 29 million tablets to Androids 16m WW. Although with Apple’s numbers released yesterday on iPad sales for this last quarter, they are closer to a 39 million installed base now and we believe it will top 50 million installed base by the end of Q4 2011.
A most important slide is #20. This outlines the sharp growth in mobile advertising and highlights the fact that quarterly smartphone mobile ad impressions have grown from 37 billion impressions in Q 4 2010 to Q3 1011, which had 250 billion mobile ad impressions.
Mary ends her slides with these comments;
On the economy
“Often darkest before dawn. At least we know what the problems are. Now we need the resolve to fix them. Across-the board sacrifice in needed.
On the tech industry
Wow! Unprecedented times! If you can keep your head when all about you are losing theirs. * Rudyard Kipling- “if”
These are just some highlights of a deck of 66 slides and a rather thorough presentation. But if you follow the tech market, it is worth spending time perusing this presentation as it has a lot of good information to think about.