As the revolutionary iPod celebrates its tenth anniversary and Apple announces a new iPhone, Compete looks back at how Apple has changed the game for consumer electronics … from product portfolio planning to online marketing, to channel and distribution strategies.

1. Think Different: The Decade of AppleHow Apple Changed the Rules of Consumer Electronics Marketing

2. Today’s Presenters Chris Collins, Director, Technology & Entertainment at Compete Alyssa Maine, Marketing Coordinator, Marketing at Compete

3. Webinar Logistics Today’s webinar will be recorded. You will be emailed a link to the deck and recording. Please enter your questions in the Questions box. We will answer as many as possible at the end. If you have technical difficulties, try loggingback in or use a different browser The Twitter hashtag for today’s webinar is #competetech

5. The leading provider of market research and competitive intelligence, based on billions of online, mobile and survey inputs from millions of consumers

7. The Decade of Apple

8. 2001 2003 2005 2007 2009 2011 $7.75 $10.36 $53.61 $153.47 $185.33 $412.14 Source: Yahoo Finance; average stock price for September of 2001-2009, closing price on September 14 2011 A Decade of Apple: Products & Profits

9. Brand Awareness

10. MythApple doesn’t spend a lot on marketing RealityApple spends a lot on marketing -over $3 billion in the last five years (They just spend it really well) Source: Apple 10-K Filings; Compete Estimates

11. Big Ad $ = Great Brand Awareness (Part 1) Website Traffic, By Unique Visitor January 2008 – August 2011

12. Big Ad $ = Great Brand Awareness (Part 2) Mobile Website Traffic, By Unique VisitorJune 2011 Source: Groundtruth

13. Brand Engagement

14. But Awareness ≠ Engagement $100+ millionAd Campaign 6+ millionUnique Visitors to DroidDoes.comin Q4 2009 ~2 million “Click & Bounce” Unique Visitors

15. Brand Engagement is Emotional

16. Emotional Engagement = 2M Shoppers / Month Website Traffic Demographics August 2011 Total Visitors 35.4 million @ 49% Female: 17.4 million @ 43% Female: 15.2 million Net “Unaddressed” Female Shoppers: 2.2 million 57% 51% 49% 43%

17. Product Consideration

18. Product Portfolio The collection of products and services that make up a company

19. Portfolio Rationalization -> Product Consideration Phone Interest (L - bar) and # of Models (R - dot), By Brand June 2008 and April 2011 April 2011 June 2008

20. Online & Offline Conversion

21. Apple Excels at Converting Product Consideration Online Purchase Funnel Fallout August 2011 iPhone (n= 288K Engaged Shoppers) Fascinate (n= 21K Engaged Shoppers)

23. Looking Ahead

24. Near Term: Strong Demand for Sprint iPhone 4S CellPhone Owners Waiting For Specific Device Q3 2010, Q4 2010, Q1 2011, Q2 2011 Q: Why is that you do not own a smartphone (a phone with advanced PC/email/Internet functionality)? Percentage answering “I am waiting for my wireless service provider to offer a specific smartphone”

26. Markets are still growing; Apple has small market share

27. Legacy of Steve Jobs

28. Law of large numbers

29. Fickle consumer tastes