1. TBRs Computing Business QuarterlySMResearch Highlights and OutlookTechnology Business Research (TBR) Quarterly Webinar SeriesJan. 30, 2013TBR T E C H N O L O G Y B U S I N E S S R ES E AR C H , I N C .

2. Computing Business Quarterly Research Highlights and Outlook: Webinar Presenters TBR Ken Hyers Senior Analyst Smartphones Tablets Mobile Content Email: ken.hyers@tbri.com Twitter: @kenhyers2TBR Quarterly Webinar Series | 1.30.13 | www.tbri.com | 2013 Technology Business Research Inc. 3. Agenda:TBR Introduction Computing Devices Platform Overview Computing Devices Benchmark 3Q12 and 2013 Outlook PC Key Trends and Outlook Tablet Key Trends and Outlook Smartphone Key Trends and Outlook Conclusions3TBR Quarterly Webinar Series | 1.30.13 | www.tbri.com | 2013 Technology Business Research Inc. 4. Computing Device Platform OverviewTBREach platform has a unique culture and approach which shapes howvendors approach specific markets Apple will grow its base, but lose share as competition grows Amazon will build upward Apple from its entry in low-priceiOSMicrosoft hastabletsa strong core Amazonand a Microsoft?business- Windowscentric view,but is Googlechallenged byAndroidlimited reach Google is rapidly expanding at the low-end of market. Though vulnerable to competition, it will continue to benefit from competitors platforms.4TBR Quarterly Webinar Series | 1.30.13 | www.tbri.com | 2013 Technology Business Research Inc. 5. CBQ 3Q12 Research Highlights and 2013 OutlookTBRChinese PC and smartphone vendors are winning growing market andrevenue share in emerging markets, creating a new competitive landscapeComputing Devices Vendor Trends for 2013 Huawei, Lenovo and ZTE are aggressively targeting BRIC markets. Emerging markets are springboards to developed markets. IMAGE SOURCE: ETFTRENDS.COM Demand is rising in BRIC markets for computing and mobile devices. China is the worlds largest mobile device and PC market.IMAGE SOURCE: WIKIPEDIA Developed markets promise greater profits, but there are high barriers to entry. Selling feature-rich devices for less is an established and successful strategy. IMAGE SOURCE: WALLPAPER1105 TBR Quarterly Webinar Series | 1.30.13 | www.tbri.com | 2013 Technology Business Research Inc. 6. CBQ 3Q12 Research Highlights: Key TrendsTBRDemand in emerging markets helped support growth for low-priced PCvendors, while Apple maintained its lead in premium consumer PCsWindows 8 adoption in 2013 will be slow as businesses take a cautious approach6TBR Quarterly Webinar Series | 1.30.13 | www.tbri.com | 2013 Technology Business Research Inc. 7. CBQ 3Q12 Research Highlights and 2013 Outlook TBRWindows 8 PC makers offer customers a variety of choices, but strongsales will not come until later in 2013PC Vendor Trends for 2013 Windows 8 gives PC vendors new paths to reach customers, but most purchases will be deferred until later in 2013. IMAGE SOURCE: COMPUTERWORLDUK Consumers will slowly embrace Windows 8 throughout the year, while businesses will remain cautious in 2013. Touchscreen notebooks will be a big draw for consumers.IMAGE SOURCE: MICROSOFT Windows 8 bridges the gap between tablets and PCs. Business users now have a viable offering that combines the advantages of the tablet and the PC. IMAGE SOURCE: DELL 7 TBR Quarterly Webinar Series | 1.30.13 | www.tbri.com | 2013 Technology Business Research Inc. 8. CBQ 2013 Research Outlook: Key Vendors TBRLeading vendors will increase market share and penetrate newgeographies with targeted products and careful pricing strategiesAppleApple will leverage a robust portfolio to drive globalrevenue and increase market share at the expense ofmargin growth in 2013. It will sustain growthmomentum and capture global PC and mobile deviceshare by sacrificing between 200 and 400 basispoints on its margin in 2013.LenovoEarning a dominant share of the global PC market is astepping stone for Lenovo as it seeks to become amajor player in mobile devices. In 2013 its focus willbe to market aggressively priced Androidsmartphones in emerging markets before eventuallylooking to developed markets for future growth.HPTBR believes PC revenue for HP declined as tabletseroded traditional PC market share and competitionfrom low-priced rivals such as Lenovo increased.8TBR Quarterly Webinar Series | 1.30.13 | www.tbri.com | 2013 Technology Business Research Inc. 9. CBQ 3Q12 Research Highlights: Key TrendsTBRWhile Apple continues to dominate the premium consumer tablet space,low-price Android tablets and commercial tablets will threaten its shareAndroid OEMs lowered prices to drive higher unit volumes9TBR Quarterly Webinar Series | 1.30.13 | www.tbri.com | 2013 Technology Business Research Inc. 10. CBQ 3Q12 Research Highlights and 2013 Outlook TBRInnovation in tablet design is giving customers more choices ascompetitors offer lower-cost alternatives to Apples iPadTablet Vendor Trends for 2013 Tablet vendors are targeting higher-volume sales with sub-$200offerings. Amazon is continuing to sacrifice device profitability in favor oflong-term content revenue streams. IMAGE SOURCES: DAILYTECH, PCMAG.COM Vendors are looking beyond the iPad for new tablet designs. Innovative designs target large but discrete market segments. IMAGE SOURCE: TECHRADAR.TABLETS Samsungs Note points to a new direction in tablet design. Huawei and others are following suit with hybrid smartphone-tablets. IMAGE SOURCE: SAMSUNG10TBR Quarterly Webinar Series | 1.30.13 | www.tbri.com | 2013 Technology Business Research Inc. 11. CBQ 3Q13 Research Outlook: Key VendorsTBRTablet vendors are encountering competitive pressures, leading some tomake aggressive portfolio investments in Windows 8 devicesWindows 8 offers vendors a way to differentiate from Apple on features, not priceAppleApple introduced the 7.9-inch iPad mini and thefourth generation iPad in November, which helpedboost tablet growth in 4Q12 amid rising competitionfrom lower-cost competing tablets, such as the sub-$200 Nexus 7 and Kindle Fire.HPDespite a refreshed portfolio that includes Windows8 tablets (which, on paper, compete with ApplesiPad), HP will struggle to compete with mobile-centric vendors such as Apple and Lenovo. Aninability to compete in the tablet market will hinderHPs growth in the consumer segment, where its PCsand printing solutions are consistently losing marketshare.AcerAcer, with only a single tablet, will focus on the high-end market to support higher tablet margins. Theexpanded features of Acers tablet compared toWindows RT, iOS and Android tablets will limit directcompetition with sales to business customers,allowing Acer to succeed despite a higher price.11 TBR Quarterly Webinar Series | 1.30.13 | www.tbri.com | 2013 Technology Business Research Inc. 12. CBQ 3Q13 Research Highlights: Key Trends TBRChinese vendors are climbing the smartphone market ladder and posethreats to smaller Android and Windows Phone OEMsWhile Chinese vendors are not yet threats to Apple and Samsung, their influence inemerging markets is growing12 TBR Quarterly Webinar Series | 1.30.13 | www.tbri.com | 2013 Technology Business Research Inc. 13. CBQ 3Q12 Research Highlights and 2013 Outlook TBRAndroid meets price-sensitive customers needs, driving market sharegains in emerging marketsSamsungs overall dominance in Android sales and Chinese vendors strengths onthe low end leave little room for other vendors in emerging markets Android vendors are targeting emerging markets to drive salesgrowth. By 2015 three-quarters of all smartphones sold in emerging IMAGE SOURCE: TEQNO- LOGICAL.COMmarkets will be Android OS devices. Samsung sells 40% of its smartphones, mostly Android devices,in emerging markets. The $100 Galaxy Pocket appeals to customers upgrading fromless-capable feature phones.IMAGE SOURCES: PHONEARENA.COM Price-sensitive emerging market customers look to Huawei,Lenovo and ZTE, leaving little opportunity for other vendors. HTC, Nokia and RIM are vulnerable. IMAGE SOURCE: FORBES13 TBR Quarterly Webinar Series | 1.30.13 | www.tbri.com | 2013 Technology Business Research Inc. 14. CBQ 3Q13 Research Outlook: Key Vendors TBRApple protected its customer base with the iPhone 5 as Samsungs diverseproduct mix at many price levels fueled capture of additional market shareLenovo has emerged as a leading smartphone vendor in Chinas marketAppleRetail expansion is helping Apple tap into customersoutside the U.S. The launch of the iPhone 5 in Indiaand China in 4Q12 will help it to capture market andmindshare. Apple will continue to focus on retailexpansion and new channel partnerships in regions Report such as China and Europe to capture additional Image 2mindshare among local customers. Lenovo Earning a dominant share of the global PC market is a stepping stone for Lenovo as it seeks to become a major player in mobile devices. In 2013 its focus will be to market aggressively priced Android smartphones in emerging markets, before eventually looking to developed markets for future growth. Samsung Samsung will extend its dominance of the global smartphone market in 2013 as it invests in localized content to grow demand for its services in emerging markets in Africa, Latin America and Asia.14 TBR Quarterly Webinar Series | 1.30.13 | www.tbri.com | 2013 Technology Business Research Inc. 15. CBQ Practice Research Outlook: 4Q12 Research Highlights TBRWindows 8 will continue to impact the PC and tablet space in 2013 bycreating growth opportunities for vendorsQuarterly Focus AreasTBR Focuses Uncover how PC vendors are leveraging Windows 8 to gain traction in theThe Impact of consumer and commercial space. Windows 8 Discuss how Windows 8 will counter the consumerization trend. Explore how poorly curated app stores create opportunities for PC and tabletPC and Tablet Vendorvendors. Ecosystems Examine how cloud services and content sharing is impacting vendor revenuestreams and brand loyalty. Analyze vendors approaches to the low-cost tablet space and what it means tobroader tablet sales strategies.Tablet Price Wars Uncover how the iPad mini will reshape the tablet market and impact low-costAndroid tablet vendors. Determine how Windows RT and x86-based Windows 8 tablets can succeed. Reveal how vendors are using M&A as a lever for rapid share growth and brandpenetration.Partners and M&A Uncover the underlying partner strategies that vendors are using to drivetechnology improvements and patent apprehension. Reveal how Windows 8 tablets will target specific verticals, such as educationVertical-specific and financial institutions. Differentiation Determine the impact content will have on vendors effectively tapping into newvertical markets.15TBR Quarterly Webinar Series | 1.30.13 | www.tbri.com | 2013 Technology Business Research Inc. 16. CBQ Practice Research Outlook: 4Q12 Research Highlights TBRVendors that leverage software to provide a consistent look and feelacross devices will climb the ranks of mobile device makers Quarterly Focus AreasTBR Focuses Discover the strategies mobile device vendors are implementing to enter or expand their presence in emerging markets. Emerging market strategies Explore the approaches vendors based in emerging markets are utilizing to enter into developed markets. Evaluate whether phone-tablet hybrids will cannibalize tablets or aid Rise of large-screensmartphone vendors in extending their reach into new customer segments. smartphones Determine how mobile device vendors will adapt their strategies as devices with screens 5-inches or larger become the new standard. Learn how vendors are positioning their devices versus Apples iPad devices to capture larger shares of the mini-tablet marketplace. Enterprise tablet strategies Analyze the strategies consumer-oriented tablet vendors are using to target enterprise customer bases. Understand the consumer and vendor impacts and pitfalls of developing Mobile OS securitymore secure enterprise solutions for Android smartphones. strategies Uncover the degrees to which the major mobile operating systems are vulnerable to malware and virus threats. Examine how the Android OEMs and Apple plan to expand their software capabilities to earn new customers and retain existing users. Going beyond the device Analyze the influence a curated ecosystem of mobile apps has on spurring additional revenue from sales of notebook PCs and Smart TV displays.16TBR Quarterly Webinar Series | 1.30.13 | www.tbri.com | 2013 Technology Business Research Inc. 17. CBQ 3Q12 Research Highlights and 2013 OutlookTBR Questions?17 TBR Quarterly Webinar Series | 1.30.13 | www.tbri.com | 2013 Technology Business Research Inc. 18. TBR Ken Hyers Senior Analyst Email: ken.hyers@tbri.com Twitter: @kenhyers @TBRInc www.slideshare.net/tbr_market_insight http://www.youtube.com/user/TBRIChannel www.linkedin.com/company/technology-business-research For additional information, please contact: John SpoonerJames McIlroy Director, Computing PracticeVice President, Sales john.spooner@tbri.com mcilroy@tbri.com18 TBR Quarterly Webinar Series | 1.30.13 | www.tbri.com | 2013 Technology Business Research Inc. 19. About TBR Contact Us Technology Business Research (TBR) is a leading independent technology1.603.929.1166 market research and consulting firm specializing in the business and financial analyses of hardware, software, networking equipment, wireless, portal and info@tbri.com professional services vendors.www.tbri.com 11 Merrill Drive Serving a global clientele, TBR provides timely and accurate market researchHampton, NH 03842 and business intelligence in formats that are tailored to clients needs. 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