Effects of Components on Ecosystem Value : The Case of the iPhone and Mobile Broadband

We examine how component changes affect network value. Theory indicates that increased component value can increase sales for network access. Using a panel of countries from 2003-2017, we test this by analyzing how the iPhone’s introduction in 2007 affected mobile broadband adoption. We find the iPhone and its imitators explain 60% of the average rise in mobile broadband’s growth rate. Per capita GDP mattered in developed, but not developing countries. The quality of government mattered in both types of countries, but regulation mattered more in developed countries, while rule of law mattered more in developing countries