Tablet Market: Investment Analysis

1

Ajay SinghMpahiseng NondoYong HeYu Liu

Tablet Market Investment Analysis

2© Copyright 2009 EMC Corporation. All rights reserved.Tablet Market Investment Analysis

INVEST IN GOOGLE– Android will continue to build momentum around mobile ecosystem– 500k daily activations in June 2011– Installed base on Android expected to grow to 1.3bn by 2014– Monetization Opportunities

Mobile search Click to call App royalties Longer term, perhaps a licensing model

Conclusion

We got late with our presentation13% Upside


Industry Analysis

Competitor Analysis

Key Success Factors

Recommendation

Q&A

Agenda

4© Copyright 2009 EMC Corporation. All rights reserved.

Industry Analysis

PC Industry PC Market Segmentation PC Market Share Tablet Market Share Tablet 5 Force Analysis


Industry Analysis

Personal Computer Industry

– Desktop PCs– Portable PCs

Laptops Netbooks Tablet

Expected to reach a value of $163.8 B by 2014

“post-PC” world ??


Market Segmentation

Global PC Market– Mobile PC: 54.3%– Desktop PC: 45.7%

Geographically– Americas: 42.3%– Europe: 30.8%– Asia-Pacific: 27%

35% of tablet sales will replace PC sales in 2011 (Goldman Sachs)

Expected 50-80 million tablet unit sales

Cannibalization of netbook segment


Market Share

Tablet Market Share– Apple dominates tablet

segment with 83.9% stake

– Google Android’s has only 14.2% stake

Gartner estimates for 2015

– Apple’s iOS: 47.1%– Google’s Android: 38.6%– RIM’s Playbook: 10%– HP’s WebOS: 3%

PC market share– Hewlett-Packard leads

the pack– Apple – Niche Player


Tablet Market: Shipment in 2011-2014


Rivalry

High Growth Opportunities

Competition is high

Buyer Power

Considerable product differentiation

HW specifications are being standardized

Moderate Buyer Power

New Entrant

Open source Android platform reduces barriers to entry

HP is looking to license its WebOS platform

Supplier Power

Communication and processor chip vendor hold reasonable power

Low switching cost for components

Moderate Supplier Power

Substitutes

Still evolving form factor

Intel introduced ultrabook

Substitute threat is high

Tablet Industry: Five Force Analysis


Competitor Analysis

iPad Apple Android Google Playbook RIM Windows 8 Microsoft WebOS HP


Tablet Platform Feature Comparison


Android

AdvantagesOpen-source project

Speedy innovation and time to market

Expected Mobile Advertising business of $1.3 B by 2012

Leader in the smartphone market with 40% stake

Technology StrategyDevelop a strong ecosystem

Drive adoption of mobile platform

Customer in focus: Software Developers

ChallengesSecurity and interoperability issues

No Common Android experience

Privacy concerns

Weak patent portfolio in communications

Core CompetenciesGreat brand name

Optimization of its search business

Value Added cloud services

Huge pool of R&D talents

Google


AdvantagesValue Chain and Ecosystem

Hardware Excellence

Customer Value and the User Experience

Go-to-Market Capabilities

Brand Value,

Retail channels.

Technology StrategyCapitalize on the convergence of the PC, digital consumer electronics and mobile communications

Leverages its unique ability to design its own operating system, hardware, application software, and services

Develop new products and solutions with superior ease-of-use, seamless integration, and innovative industrial design

ChallengesSecurity

Limited Enterprise Applications

High Total Cost of Ownership (TCO)

Core CompetenciesApple's Hardware + Software

iTunes & Digital Asset Management

Apple's Retail Stores

Apple

iPad


PlayBook

AdvantagesDominant player in the enterprise mobile market

Existing BlackBerry infrastructure to leverage

Long list of excellent features and hardware specs

Technology StrategyLeverage BB infrastructure: BES, Push email

Powerful QNX –multi-task, real-time, fluid UI

ChallengesSmaller eco system, less apps

Missing some key functionalities: native email client

Lack of effective marketing strategy

Core CompetenciesSecure and encrypted transmission

Existing BlackBerry infrastructure

Vast and loyal customer base

Strong R&D and engineering capability

RIM


Windows 8

AdvantagesSupport both PC and tablets seamlessly

Redesign UI, optimized for touch screen

Huge Windows eco system to leverage

Technology Strategy

New designed from scratch for gestures and touch.

Develop once, run on both PC and tablets

Run old Windows apps easily

DisadvantagesStruggling with tablets, failed previous products

Tablets <> PC

Too late to the market

Core CompetenciesDominant position in PC, Windows apps

Extensive marketing channels, big brand

Established partnership network

Excellent R&D and engineering capability

Microsoft


WebOS

AdvantagesWill supports both new and old products

Player in both enterprise and consumer markets

Can use the existing huge PCs customers as a stating base for their sales

Technology StrategyRun on both PCs and the Touchpad

Runs Windows and OS system

Will license OS to hardware manufacturers

DisadvantagesLess apps

HP is too late into a crowded market

Touchpad is based on a platform from a failed company

Core competencesdominant position in the global PC and printer hardware

Huge brand awareness

Strong R&D and engineering capability

HP


Platform Evaluation

Industry S-Curse Landscape of the Technology

Adoption Life-Cycle Uniqueness & Complementary

Assets over the Life Cycle Future development and Available

Apps Future Trends of Tablet


Industry S-Curve &Landscape of the Technology Adoption Life-Cycle


Uniqueness & Complementary Assets over the Life Cycle:

Ferment

Takeoff

Maturity

UniquenessComplementary

Assets


New Product Development

Breakthrough

Platform

Derivative

Support

New CoreValue

NewBenefits

ImprovedBenefits Variation

Radical

NextGeneration

Incremental

Base

En

abli

ng

Te

chn

olo

gy

Market Perception

Apple

Apple

Others

Others


Future Development and Available Applications


Technological Trends– Post PC era

Mobility + Portability

– Changed User Behaviors– Consumerization of technology drive

Tablet within the enterprise. Functionality and business process integration User factors System integration Application architecture Management and security

Business Trends– Business Challenges and Opportunities– Market Implications

Future Trends of Tablet Industry


Recommendation

Key Success Factors Recommendation


Key Success Factors

Key success Criteria Weighting iPad Andriod Playbook Windows 8 WebOSHardware (15%)

USB Port/SDCard 1% 0 5 4 4 2Batter Life 4% 5 4 4 3 3Weight 3% 4 3 5 3 3Sensor(Accelerometer /Gyroscope etc) 4% 5 5 3 4 4GPS/Compass 1% 5 5 5 5 5

Connecttivity (15%)Wifi/Bluetooth 3% 5 5 5 5 53G/4G 5% 3 4 3.5 2 2Security 7% 4 3 5 3 3


Key Success Factors

Key success Criteria Weighting iPad Andriod Playbook Windows 8 WebOSUser Interface (15%)

Screen (Quality and Size) 4% 5 5 4 4 4Front/Back Cameras 3% 3 5 5 4 3Multitouch 7% 5 4 4 4 4Handwriting Recognition Enabled 1% 0 3 0 3 0

Application and Management (26%)User Experience 10% 5 4 3.5 3.5 3Appliation Capability 2% 5 5 3 3 3Adobe Flash 2% 0 4 5 4 5Number of Application 8% 5 5 3 2 2Secure Access Client 2% 4 3 5 4 3Remote Manageablity 1% 4 4 5 4 3

Platform Eco-System (20%) 20% 3 5 2 3 2Value-added Service (12%)

Content (e-book, music etc) 6% 5 4 2 3 3Cloud service 6% 5 5 4 3 2


Recommendation

Long-TermAndroid ! But Patent

Short-TermiPad


Q&A


Thank You !