The document analyzes iPhone usage patterns based on a survey of 1,400 domestic iPhone users. Key findings include: - 58% of users visit the App Store daily, with an average monthly budget of $12.8 for new apps in the first month and $5.4 after. The most popular apps are games, camera, and location-based services. - Users spend 63 minutes on average commuting, mainly by bus or subway, and location apps are most tried. - Google sees increased preference as the preferred portal due to optimized iPhone services like Gmail. - 83% of users have home Wi-Fi access points, increasing iPhone usage and demand for high-speed internet.

1. CEO Information IT service and phone usage patterns of iPhone users and its implications EXECUTIVE SUMMARY Research method Ⅰ.iPhone user profile Ⅱ. Application usage patterns Ⅲ. IT service usage patterns Ⅳ. Reasons for iPhone purchase & future iPhone users V. Others: iPhone Accessories

2. EXECUTIVE SUMMARY www.digieco.kr Google 58% Users who visit Appstore everyday Increased preference of portal when using iPhone 63min. 4.1 Game 83% $5.4 Screen protection cases Average commute time Most preferred purchase/ downloaded applications (Paid/free) Monthly planned budget for applications Most preferred accessories Users who have AP at home An iPhone user’s acquaintances who want to use iPhone

3. Research method www.digieco.kr Analysis of impact of iPhoneone month after its release by investigating IT service and phone usage patterns of iPhone users Purpose 1,400 domestic iPhone users (male: 87%, female: 13%) Object Online survey for a week from Jan. 6, 2010 to Jan. 13. Via DigiEco, the online intelligence portal of KT Business & Economics Research Period Are there any changes in the use of telecommunication/internet/PC due to iPhone? Why did you get an iPhone, and what kind of applications do you prefer? Plan to purchase/download applications? Past spending and future budget for the purchase? Question

4. Ⅰ. iPhone user profile: [1] product experience www.digieco.kr 46% of iPhone users experienced touch-screen phones. 27% of them experienced other smart phones. iPhone users experienced iPod and iPod Touch the most among Apple’s products. 28% of them have experience using Apple’s computer products. Smart phones 27% Apple’s products 59% Touch-screen phones 46% 20s 39% iPod (MP3) 39% Samsung phones 48% iPod (Touch) 30% LG phones 31% 30s 51% Laptop (Macbook) 16% Other phones 21% 40s 7%

5. Ⅰ. iPhone user profile: [2] means of transportation www.digieco.kr The average commute time for iPhone users was 63.2 minutes mainly by bus or subway. LBS applications were most frequently tried out, especially for public transportation and getting directions. Commute time 63 min. Most preferred transportation 10s 44 min. 10s Bus >Walk >Subway 20s 63 min. 20s Subway >Bus >Car 30s 65 min. 30s Car >Subway >Bus Most frequently used applications Trial applications No 1. Game No 1. LBS No 2. Camera No 2. Game No 3. LBS No 3. Camera

6. Ⅱ. Application use patterns: [1] most frequently used applications www.digieco.kr There is difference between the main reasons to buy iPhone and most frequently used applications by age. Game and camera applications, which are not the main reason to buy iPhone, are most frequently used. Surprisingly, users in their 40s enjoy games. <Main reasons to buy iPhone> Main reason for purchase 10s~20s: iPod 30s~40s: E-mail/SNS Most frequently used apps Game/Camera/LBS apps <Most frequently used applications>

7. Ⅱ. Application use patterns: [2] application consumption patterns www.digieco.kr iPhoneusers are willing to pay for games, productivity and LBS. Willingness to pay is highest for game applications to 10s~20s age group and productivity to 30s~40s age group. People in 40s tend to download free games while paying for productivity/LBS applications. <Preferred free applications> Free applications Game/camera/SNS apps Paid applications Game/LBS/productivity apps <Preferred paid applications>

8. Ⅱ.Application use patterns: [3] application use patterns & budget for applications 97.6% of iPhone users have visited the Appstore. 58% of them visit almost every day. Estimated monthly budget is $12.8 for the first month, and plan to spend $5.4 for months after. <Budget for purchsing applications> <Frequency of Appstorevisit> Less than once a week 2.4% $12.8 for the first month Once a week 4.5% $4.25 $9.2 10s 10s Twice or 3 times a week 17.2% UP UP $11.9 $5.3 20s 20s 15.4% 4 or 5 times a week 30s 30s $5.7 $13.9 58.1% Almost every day $17.5 $6.5 40s 40s More than twice a week 91% 97.6% At least once ever $5.4 for months after “I visit Appstore almost every day!” 10s 65% 10s 60% 54% 20s 20s 46% 30s 64% 40s 38%

9. Ⅲ. IT service use patterns: [1] wire-wireless portal www.digieco.kr Google, with optimized service for iPhone, has highest increasing preference – expecting a shift of power in the internet portal industry. The preference increases once iPhoneusers experience the convenience of G-mail. <Portal preferred by PC users> <Difference> <Portal preferred by iPhone users> PC -> iPhone Change of preferred portal <Portal preferred by iPhone users> Preferred portal change caused by G-mail <Portal preferred by PC users>

10. Ⅲ. IT service use patterns: [2] AP & High speed internet www.digieco.kr Most iPhone users have Wi-Fi AP at home and at work, but AP accessibility is low in other places. While PC usage time at home has decreased, iPhone usage time and need for high-speed internet accessibility has increased. <Accessibility to AP in other places > AP at home 83% AP accessibility is guaranteed at home and at work. Not easily accessible to AP in other places. AP at work 71% NESPOT AP 66% Low Medium High Do you think you need high speed internet for iPhone? The PC usage time at home has decreased due to the use of iPhone! The need for high speed internet to use Wi-Fi has increased! PC usage time at home iPhone usage time at home

11. Ⅳ.Reasons for iPhone purchase & future iPhone users www.digieco.kr The main reason to buy iPhone is ‘iPod Touch’ for teenager users, ‘friend’s recommendation’ for users in their 20s, and ‘blogs’ for users in their 30s. An iPhone user makes 4.1 friends and colleagues to think about buying iPhone. 2.7 people 10s 4.1 people 20s 4.3 people 30s 3.7 people 40s An iPhone user makes nearly 4.1 people think about buying iPhone.

12. 11 V. Others: iPhoneaccessories www.digieco.kr Many iPhone users buy screen protection films and cases with the iPhone. iPhoneusers have high willingness to buy audio systems for iphone, which means they are not limiting iPhoneas a personal mobile device but plan to expand it as the center of multimedia activities at home. <Accessories users already have> <Accessories users want to have>