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Google Nexus One Upfront Analysis Ankan Jain James Wade Peter You Satya Dash

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Slide 2 Competitive analysis Past years analysis of marketing elements Marketing research Perceptual maps Industry analysis Lessons Learned SWOT analysis 1 1 2 2 3 3 4 4 5 5 6 6 7 7 Brand positioning Statement 8 8

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Communication industry Slide 3 Communication Wired Television Internet Phone Wireless PagingCellular Wireless phoneSkype wireless Tablet PCs/eReader iPad Kindle Advanced PCS Home School Hotel

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Wireless telecommunication Slide 4 Advanced PCS - Wireless networking in homes, schools, offices, wireless hotspots Cellular services 1G, 2G, 3G and 4G $152bn

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What is a smartphone? Slide 5 Two categories of mobile phones Feature Phones Basic phones with one or two advanced features like a camera or a basic web browser Very inexpensive Primary uses are calling and texting Smartphones Advanced phones with multiple features including full web browsers, e-mail, music players, maps and 3 rd party apps Prices from $100 to $500 Consumers use multiple functions beyond calling and texting

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Market Structure - General Slide 6 OS Developers Handset Makers Carriers Retailers Consumers 3 rd Party App Developers 3 rd Party Accessory Makers One firm may be all 3 or any combination Apple, RIM, Google, MS, Palm, Nokia Apple, RIM, HTC, Samsung, LG, Palm, Nokia, Motorola Verizon, AT&T, T-Mobile, Sprint Carrier Stores, Web sites, Best Buy, Wal-Mart

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Slide 7 The players

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Operating System Players Slide 8

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Smart phone handset makers Slide 9 Source: Razorfish, "FEED: Digital Brand Experience Study," November 10, 2009

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Carriers Slide 10

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Market Structure iPhone, Blackberry, Droid Slide 11 iPhoneBlackberryDroidNexus One OS DeveloperAppleRIMGoogle Handset MakerAppleRIMMotorolaHTC Carrier(s)AT&TVerizon, AT&T, Sprint, T- Mobile VerizonT-Mobile RetailersApple, AT&T, Best Buy DozensVerizon, Motorola Google

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Slide 12 Industry Growth

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Major market segmentation Slide 13

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Feature Phone Sales Maturing Slide 14 91% of US population has a cellphone Growth rate dropped to single digits in 2007 and is not expected to rise again

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Smartphone Sales Exploding Slide 15

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Smartphone Industry Trends Slide 16 Switch from feature phones to smartphones Skyrocketing popularity of 3 rd party apps Shift from business to personal and mixed use Fierce competition at all levels of industry

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Trend Switch from Feature Phones to Smartphones Slide 17 Since launch of iPhone in 2007, consumers are increasingly moving from feature phones to smartphones Shipments of smartphones are projected to exceed feature phones in 2012

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3 rd Party Apps Take Over Slide 18 Since launch of iTunes App Store, 3 rd party applications have skyrocketed in popularity Creates additional revenue stream for app developers and OS developers VoIP apps threaten to disrupt market structure by competing with carriers

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Top Five Mobile Content and Services Slide 19

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Slide 20 Industry Trends

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Trend Shift from Business to Personal Use Slide 21 Smartphones were originally used mostly for business applications such as constant e-mail access Since launch of iPhone and iTunes App Store, biggest growth has been in phones for personal use Many consumers use smartphones for both business and personal use

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Trend Ferocious Competition and Innovation Slide 22 Just since February 2010, handset and OS makers have announced the following new products: Palm Pre Plus and Pixi Plus Can create mini-hotspots to connect other WiFi devices to 3G Microsoft Windows Phone 7 Series Completely redeveloped OS from Microsoft HTC Evo 4G 4.3 screen WiMax 4G service 8 MP camera

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Implications of Industry Trends Slide 23 Rapid growth from new customers, not just churn of existing customers Network effects will drive app availability. Power of carriers decreases as consumers pay less attention to calling. Consumers call the shots, not corporate IT departments. Feature advantages are not sustainable, even in the short term (