Devices = Better / Faster / Cheaper Apple iPhone New Smartphone Shipments –ASP 2016 2017 $500 * al lob G $400 , SP A ‘Portrait’ Photos Face Tracking nt Water Resistant Full Device Display $300 me Wireless Charging Ship Google Android ne 2016 2017 $200 rtpho Sma $100 New Google Assistant ‘Lens’ Smart $0 Image Recognition ‘AI-Assisted’ 2007 2009 2011 2013 2015 2017 Photo Editing Always-On Display Source: Apple, Google, Katy Huberty @ Morgan Stanley, IDC. *ASP Based on Morgan Stanley’s new smartphone shipment breakdown by taking the midpoint of each $50 price band & assuming a $1,250 ASP for smartphones over $1,000. Note: Deloitte estimates that 15 120MM used smartphones were traded in 2016 and 80MM in 2015 which may further reduce smartphone costs to consumers as the ratio of used to new devices rises. Apple 2016 = iPhone 7 Plus, 2017 = iPhone X. Google 2016 = Pixel, 2017 = Pixel 2.