Tablet Market: Investment Analysis

1
Ajay Singh
Mpahiseng Nondo
Yong He
Yu 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

Industry Analysis
Competitor Analysis
Key Success Factors
Recommendation
Q&A
Agenda

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

5© Copyright 2009 EMC Corporation. All rights reserved.Tablet Market Investment 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
Advantages
Open-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 Strategy
Develop a strong ecosystem
Drive adoption of mobile platform
Customer in focus: Software Developers
Challenges
Security and interoperability issues
No Common Android experience
Privacy concerns
Weak patent portfolio in communications
Core Competencies
Great brand name
Optimization of its search business
Value Added cloud services
Huge pool of R&D talents
Google

Advantages
Value Chain and Ecosystem
Hardware Excellence
Customer Value and the User Experience
Go-to-Market Capabilities
Brand Value,
Retail channels.
Technology Strategy
Capitalize 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
Challenges
Security
Limited Enterprise Applications
High Total Cost of Ownership (TCO)
Core Competencies
Apple's Hardware + Software
iTunes & Digital Asset Management
Apple's Retail Stores
Apple
iPad

PlayBook
Advantages
Dominant player in the enterprise mobile
market
Existing BlackBerry infrastructure to
leverage
Long list of excellent features and
hardware specs
Technology Strategy
Leverage BB infrastructure: BES, Push
email
Powerful QNX –multi-task, real-time, fluid
UI
Challenges
Smaller eco system, less apps
Missing some key functionalities: native
email client
Lack of effective marketing strategy
Core Competencies
Secure and encrypted transmission
Existing BlackBerry infrastructure
Vast and loyal customer base
Strong R&D and engineering capability
RIM

Windows 8
Advantages
Support 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
Disadvantages
Struggling with tablets, failed previous
products
Tablets <> PC
Too late to the market
Core Competencies
Dominant position in PC, Windows apps
Extensive marketing channels, big brand
Established partnership network
Excellent R&D and engineering capability
Microsoft

WebOS
Advantages
Will 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 Strategy
Run on both PCs and the Touchpad
Runs Windows and OS system
Will license OS to hardware manufacturers
Disadvantages
Less apps
HP is too late into a crowded market
Touchpad is based on a platform from a
failed company
Core competences
dominant 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
Uniqueness
Complementary
Assets

New Product Development
Breakthrough
Platform
Derivative
Support
New Core
Value
New
Benefits
Improved
Benefits Variation
Radical
Next
Generation
Incremental
Base
EnablingTechnology
Market Perception

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 WebOS
Hardware (15%)
USB Port/SDCard 1% 0 5 4 4 2
Batter Life 4% 5 4 4 3 3
Weight 3% 4 3 5 3 3
Sensor(Accelerometer /Gyroscope
etc) 4% 5 5 3 4 4
GPS/Compass 1% 5 5 5 5 5
Connecttivity (15%)
Wifi/Bluetooth 3% 5 5 5 5 5
3G/4G 5% 3 4 3.5 2 2
Security 7% 4 3 5 3 3

Key Success Factors
Key success Criteria Weighting iPad Andriod Playbook Windows 8 WebOS
User Interface (15%)
Screen (Quality and Size) 4% 5 5 4 4 4
Front/Back Cameras 3% 3 5 5 4 3
Multitouch 7% 5 4 4 4 4
Handwriting Recognition Enabled 1% 0 3 0 3 0
Application and Management (26%)
User Experience 10% 5 4 3.5 3.5 3
Appliation Capability 2% 5 5 3 3 3
Adobe Flash 2% 0 4 5 4 5
Number of Application 8% 5 5 3 2 2
Secure Access Client 2% 4 3 5 4 3
Remote Manageablity 1% 4 4 5 4 3
Platform Eco-System (20%) 20% 3 5 2 3 2
Value-added Service (12%)
Content (e-book, music etc) 6% 5 4 2 3 3
Cloud service 6% 5 5 4 3 2

Recommendation
Long-Term
Android !
But Patent
Short-Term
iPad

Q&A

Thank You !

Tablet Market: Investment Analysis

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