1. Industry analysis The goal of our industry analysis is to: – predict which industry is rising and which is declining, earlier than other investment professionals. – Sort out winners and losers for that industry

2. Smart Phone Industry Analysis

3. Application of Industry Analysis-Smart phone industry (the holy grail of high tech) The demand for converged pocket device: limited pocket size creates the demand for one device with multiple functions rather than multiple devices with one function each. – Family Doc vs. Specialist; – Wal-Mart vs. Toy US When separate functions actually help each other, a converged device is better than stand-alone devices – Camera +email ; organizer +phone ; GPS+search ; PSP+ internet connection=peer to peer game

4. Smart Phone Industry Functions – Phone – Entertainment Games, Music, Video – Internet/information Emails, Web, Stocks, weather – Location: GPS – Organizer Portable makes it more powerful that PC – To do list, iTV

5. Smart Phone Industry Supply: Technology advancement makes it possible to build such a device that excels in several functions as good as stand alone device The implication: stand-alone devices get killed gradually – PDA-- died – GPS--dying – MP3 Player-will die – Handheld game console

6. Smart Phone Industry

7. The Trend: – Smart phone will grow 3 times faster than cell phone industry – represent 25-30% of cell phone sales in 2013, and 40-50% in US Quick survey – Smart phone ownership Now 1 year ago Plan to buy in the future, why?

8. PC industry The drama and timeline of the industry – Micro processor and Intl – Display, keyboard and Apple – IBM – Operating system and Microsoft – GUI (graphic user interface) and Macintosh – Windows and PCs Current state of the industry – The players – The trend: cloud computing, mobile computing – Slow growth and longer upgrade circle

9. TV industry Content owner/provider (entertainment-diversified) Old Distribution channel – Cable TWC, Comcast – Satellite DTV, Dish New channels-Internet – Netflix, Apple, Google Tech support – Akamai

10. Content owner players: CBS, Time Warner, Disney Business model: Ad sponsored Ad spending is highly correlated with overall economy The trend – Declining view – New precise ad model