Browsing as the killer app: Explaining the rapid success of Apple's iPhone

Since the mid-1990s, the mobile phone industry has sought widespread adoption of mobile data services, envisioning a new mobile internet with its own complex value network delivered through smartphone terminals. With its iPhone, Apple rapidly gained smartphone market share while spurring widespread adoption of mobile data services in the United States. Here it is argued that the success of the iPhone was based on Apple's conception of the mobile Internet as being another modality of the existing wired Internet, and its leveraging of existing systems competencies. It is demonstrated how a promise to deliver the real internet was a core part of Apple's original strategy, and that iPhone users quickly showed an interest in web browsing disproportionate to any other mobile phone in the US or Europe. From this, implications for the development of the mobile Internet in other countries are identified, as well as for future value creation and capture in mobile phone value networks. (C) 2010 Elsevier Ltd. All rights reserved.