Google Nexus Upfront Analysis

Google Nexus One Upfront AnalysisAnkan JainJames WadePeter YouSatya Dash

1Slide 2 Competitive analysisPast years analysis of marketing elementsMarketing researchPerceptual mapsIndustry analysisLessons LearnedSWOT analysis1234567Brand positioning Statement82Communication industrySlide 3 3Wireless telecommunicationSlide 4

Advanced PCS - Wireless networking in homes, schools, offices, wireless hotspotsCellular services 1G, 2G, 3G and 4G $152bn4What is a smartphone?Slide 5 Two categories of mobile phonesFeature PhonesBasic phones with one or two advanced features like a camera or a basic web browserVery inexpensivePrimary uses are calling and textingSmartphonesAdvanced phones with multiple features including full web browsers, e-mail, music players, maps and 3rd party appsPrices from $100 to $500Consumers use multiple functions beyond calling and texting

5Market Structure - GeneralSlide 6 OS DevelopersHandset MakersCarriersRetailersConsumers3rd Party App Developers3rd Party Accessory MakersOne firm may be all 3 or any combinationApple, RIM, Google, MS, Palm, NokiaApple, RIM, HTC, Samsung, LG, Palm, Nokia, MotorolaVerizon, AT&T, T-Mobile, SprintCarrier Stores, Web sites, Best Buy, Wal-Mart6Slide 7 The players7Operating System PlayersSlide 8

8Smart phone handset makersSlide 9

Source: Razorfish, "FEED: Digital Brand Experience Study," November 10, 20099CarriersSlide 10

10Market Structure iPhone, Blackberry, DroidSlide 11 iPhoneBlackberryDroidNexus OneOS DeveloperAppleRIMGoogleGoogleHandset MakerAppleRIMMotorolaHTCCarrier(s)AT&TVerizon, AT&T, Sprint, T-MobileVerizonT-MobileRetailersApple, AT&T, Best BuyDozensVerizon, MotorolaGoogle11Slide 12 Industry Growth12Major market segmentationSlide 13

13Feature Phone Sales MaturingSlide 14 91% of US population has a cellphoneGrowth rate dropped to single digits in 2007 and is not expected to rise again

14Smartphone Sales ExplodingSlide 15

15Smartphone Industry TrendsSlide 16

Switch from feature phones to smartphonesSkyrocketing popularity of 3rd party appsShift from business to personal and mixed useFierce competition at all levels of industry

163rd Party Apps Take OverSlide 18 Since launch of iTunes App Store, 3rd party applications have skyrocketed in popularityCreates additional revenue stream for app developers and OS developersVoIP apps threaten to disrupt market structure by competing with carriers

18Top Five Mobile Content and ServicesSlide 19

19Slide 20 Industry Trends20Trend Shift from Business to Personal UseSlide 21 Smartphones were originally used mostly for business applications such as constant e-mail accessSince launch of iPhone and iTunes App Store, biggest growth has been in phones for personal useMany consumers use smartphones for both business and personal use

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Trend Ferocious Competition and InnovationSlide 22 Just since February 2010, handset and OS makers have announced the following new products:Palm Pre Plus and Pixi PlusCan create mini-hotspots to connect other WiFi devices to 3GMicrosoft Windows Phone 7 SeriesCompletely redeveloped OS from MicrosoftHTC Evo 4G4.3 screenWiMax 4G service8 MP camera

22Implications of Industry TrendsSlide 23

Rapid growth from new customers, not just churn of existing customersNetwork 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 (