Consumer Electronics
Marketing Taskforce
April ２５, 2012

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Areas for Today’s Discussion
 Consumer Electronics marketplace Opportunities for 4G/TDD-LTE enablement
 Key requirements for Consumer Electronic OEMs
 Consumer Electronics Marketing Taskforce – Plan for engaging with OEMcommunity

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Consumer Electronics Market
 This year, global Consumer Electronics sales are expected to top $1 trillion, increasing
by 5% over 2011’s figure of $993 billion
 Retail volume is estimated to be 3.5 – 4 billion units in 2012 Computer purchases make up the largest Consumer Electronics segment and on themobility side there is strong momentum behind Tablet PCs
 Trend towards “hypermobility”, where consumers are rapidly adopting mobiletechnologies and downloading apps that keep them connected anywhere, anytime Growth in cloud services, where consumers are increasingly reaching into the networkand modifying their behaviors, is accelerating this trend
 Only a small percentage of Consumer Electronic devices are 3G and 4G-enabled,largely due to high service plans, service contracts, chipset costs, and network speeds
 The build-out of higher capacity 4G networks, like TDD-LTE, offers cost efficiencies
and higher throughput that will address customer requirements

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Consumer Electronic LandscapeBased on Industry Research taken from a Global SampleoooComputers have the highest household penetration, but isforecasted to have flat to negative growth. Notebooks
expected to modestly offset drop in desktop PCs
While Tablet PCs/eReaders are in their infancy, thesegment grew 50% last year
Connected services driving mobile computing demandooConsumers are reaching into the network for services andcontent
As consumers are reaching into the cloud, a majority(56%) are changing the choices they make and how they
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Consumer Electronics Market
Computing devices are the “low hanging fruit” for TD-LTE focus
122

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1Primary Focus• Based on consumer trends andneed for mobile access,Notebooks/Netbooks andTablets/eReaders appear to be
best suited for near-term LTEenablement
2Secondary Focus• GPS segment – As it relates toin-vehicle and telematics

111• Portable Gaming and Portable
Music Players – Key
requirement will be low-costchipset (i.e. iPod Touch, SonyPSP, etc)

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Notebook & Tablet Opportunity
The Notebooks and Tablet device segments were the early adopters in
embedded 3G and 4G
1Worldwide Sales
Percentage Growth

Notebooks & Netbooks

1

Tablets & eReaders

20122015

2012

2015

250M

400M

70M

200M

60%

185%

Source: IDCand2011,
Morgan Stanley
Research
Confidential
Proprietary.
For Clearwire
internal use only. Do not distribute without written permission from Clearwire.

Example: WWAN Enablement in US
 Embedded 3G Notebook market in the US has been geared to nichesegments – mobile business professionals and high-end consumers
 Approximately 5%-10% of Notebooks sold have embedded modules
 Impediments to embedded 3G has been:oooo

Chipset pricing
Service plans and contract pricing
Long certification and testing cycle
Throughput performance Tablets are still a relatively new device category and has initially relied oncarrier distribution channels
 While the iPad initially saw higher demand for embedded 3G, estimated sales
had dropped from 50% of sales to 30% (prior to launch of new iPad)

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Example: WWAN Enablement in USooo

Latitude line geared to Business and Mobile
Professionals
Build-to-order Dell Latitude E5520
Base price for configuration is $659
Configuration over Dell.com

oo$125 cost adder for Gobi 3000 (HSPA/EVDO)
Across AT&T, Sprint, and Verizon

oService pricing options $50 (5 GB) and $80(10 GB)
Activation fee up to $35$10 overage per GB
Promotional Instant Rebate sometimes
offered for contract commitment

oLatitude E5520

ooo

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Example: Cleawire 4G Learnings
 Clearwire has seen initial success with embedded 4G in Notebooks
 Chipset partner showed strength in pricing and technical support
o Pricing to OEMs was about half compared to 3G module
o Reference design development and technical support
 Embedded 4G in consumer-oriented and lower-priced Notebooks, across Intel Core i3,i5, and i7 platforms
 Higher throughput and unlimited data plans priced at $34.99 (1.5 Mbps DL and 0.5Mbps UL) and $49.99 (3-6 Mbps DL and 1.5 Mbps UL)
 Support from 8 leading PC OEMs (Dell, HP, Lenovo, Toshiba, Acer, Asus, Sony, andSamsung), representing over 50 models
 Retail distribution at 3 national retailers (including Best Buy) with associatedmarketing in circulars, buying guides, and promotional materials

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Example: Clearwire 4G Learnings
1

Newspaper Advertising

2

Circular Advertising3

In-Store Marketing & Promotions

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Initial Focus of the Taskforce
Goal
Goal isis forfor OEM
OEM considering
considering LTE
LTE toto procure
procure TD-LTE
TD-LTE capable
capable modules
modules
In Addition to SmartPhone/MiFi OEM/ODMs, Suggested
Primary Focus for Marketing Working Group1

Notebook OEM
Target List

1

Tablet/eReader
OEM Target List

Secondary Focus
2

Examples of
Other Opportunities

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11Plans for Engaging with OEMs
Tactics for the Marketing Working Taskforce
 Develop a target list of OEMs/ODMs, which represents strong market share in desired devicemarkets
 Assign Marketing Taskforce team members to OEM global and region-specific teams to ensure
discussions are scheduled and appropriate follow-up is achieved
 Educate OEMs/ODMs with necessary information to propel investigation and deliver of TDD-LTE
device – including market opportunity, carrier support, chipset providers, technical considerations
and technical/certification process Build “documentation hub” for Consumer Electronic OEMs to service provider business plans andtechnical information
 Leverage channels, like GTI web-site, PR and industry analysts to communicate to the market andecosystem Develop robust IOT support for chipset providers, which will enable a healthy and price competitivemarketplace Work with MM-MB Taskforce to track vendors and pricing for single antennas that support multimode and multi-bands
 Share important learnings from the OEMs/ODMs back to GTI Business & Services Working Groupfor consideration
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