1. THE ULTIMATE MOBILE ENTERTAINMENT EXPERIENCE THATS AFFORDABLE Subbu Subramaniam Satish Mandalika Rajeev Kalavar Praveen Kudithipudi Divyang Agrawal New Product Management

2. Agenda Market Overview Product and Value Proposition The Concept Marketing Strategy Tactics and Launch Plan Summary Overview Product Concept Strategy Launch Plan 3. Tablet Industry The iPad was announced on January 27, 2010 In Steve Jobs words - a magical device Initial reviews mixed - an oversized iPhone Most Analysts projected modest sales Apple released the iPad in April 2010 Sold 3 million of the devices in 80 days iPhone 1M, DVD player 350k In Q2 10, Apple sold 4.19 million iPads around the world Adoption Rate Fastest Ever, Passing DVD Player Foundation for an entirely new Industry & Eco-System Overview Product Concept Strategy Launch Plan 4. 75% 22% 3% iPad Android Others Overview Product Concept Strategy Launch Plan Tablet Market Share Jan 2011 Industry Growth 5. Tablet Competitive Landscape Overview Product Concept Strategy Launch Plan 6. Target Universe Households with Income > 50K Households with WLAN connections at home 110 MM Households 47% Households > $50k Total # HH > $50k => 47%*110MM = 51MM WLAN penetration 30% of all Households Total WLANs HH = 30% * 110MM = 33MM Others Non-overlapping % of 3G users, other consumer types = 15% of HH = 17MM Total Target Universe = 33 + 17 = 50MM Overview Product Concept Strategy Launch Plan 7. Customers Overview Product Concept Strategy Launch Plan 8. Samsung Business Objectives Brand Leadership Consumer Electronics Leadership Sustained Profitability $$$$ Ubiquitous Computing ProductOverview Concept Strategy Launch Plan 9. ProductOverview Concept Strategy Launch Plan Large 10.1 HD widescreen Display Dual-Core 1GHz CPU Android 3.0 Designed for Tablets 2MP WebCam 8MP Camera 1080p Video Capture & Playback HALO 10. ProductOverview Concept Strategy Launch Plan http://www.youtube.com/watch?v=M- 80QD5Zjyc&playnext=1&list=PLE7FACA97F 433720B Introducing Android 3.0 11. Value Proposition - I Cinematic Hi-def Experience with HDMI ProductOverview Concept Strategy Launch Plan 12. Front and Rear Facing 2MP/8MP Camera ProductOverview Concept Strategy Launch Plan Value Proposition - II 13. Universal Web Browsing with Adobe Flash Player ProductOverview Concept Strategy Launch Plan Value Proposition - III 14. Higher Productivity with Seamless Integration to the Cloud ProductOverview Concept Strategy Launch Plan Value Proposition - IV 15. Bridging the gap with traditional PCs ProductOverview Concept Strategy Launch Plan Value Proposition - V 16. Concept ConceptOverview Product Strategy Launch Plan 17. Purchase Intent from Concept 20.0% 42.0% 24.0% 10.0% 4.0% Definitely would buy Probably would buy Might/might not buy Probably would not buy Definitely would not buy 17.0% 29.0% 30.0% 15.0% 9.0% Measure consumer interest, motivation and preference. Help validate that the defined need can be met through the proposed concept. ConceptOverview Product Strategy Launch Plan 18. Adjustment for Need and Timing Overstatement Adjustment Adjustments Concept Testing Results Product 1 Sample Size (N) 305 Price $450 Overstatement elasticity 1.00 % Need 49.0% Timing of purchase 59.0% Purchase Intent PI (%) Conv. Rate Weighted PI Adjusted PI Definitely would buy 20.0% 28.7% 5.73% 1.66% Probably would buy 42.0% 16.9% 7.10% 2.05% Might/might not buy 24.0% 7.5% 1.79% 0.52% Probably would not buy 10.0% 5.9% 0.59% 0.17% Definitely would not buy 4.0% 4.4% 0.18% 0.05% Total Weighted PI 15.4% Concept Testing Results Product 2 Sample Size (N) 310 Price $550 Overstatement elasticity 1.05 % Need 40.0% Timing of purchase 50.0% Purchase Intent PI (%) Conv. Rate Weighted PI Adjusted PI Definitely would buy 17.0% 27.3% 4.6% 0.93% Probably would buy 29.0% 16.1% 4.7% 0.93% Might/might not buy 30.0% 7.1% 2.1% 0.43% Probably would not buy 15.0% 5.6% 0.8% 0.17% Definitely would not buy 9.0% 4.2% 0.4% 0.08% Total Weighted PI 12.7% ConceptOverview Product Strategy Launch Plan 19. Product Category Comparison