1. Enhancing Apple’s Ecosystem Team 1 - Nir Hertz and Ronald Jordan

2. Apple’s Ecosystem & Beats Acquisition ●Brand Recognition/Customer loyalty ●Control over user experience ●Beats Electronics

3. Looking towards the future ●Health Application ●Patents

4. The Problem ●Health application requires manual entries ●Making the technology =Time+Money

5. Valencell, Apple, and Beats ●Ecosystem: Completed Cycle ●Fully integrate into earphones ●Health App - live data ●Device transferable o Apple watch o Earphones ●Beats Music

6. How It Will Work? ●Earphones - accurately track fitness biometrics ●iPhone - View live data ●Beats Music - audio feedback based on data

7. Valencell PerformTek Sensor ●So small, it fits in your ear ●Eliminates need for other devices ●Accelerometer + Optical Device

8. Wearable Computing Tech Wearable Technology Fitness Tracker=40%

9. Wearable Computing Tech Revenue Wearable Technology Fitness Revenue Forecast=$91.5M

10. Potential Costs Major Costs ●Licensing - charge $/device OR ●Acquisition - More efficient Minor Costs ●Integration/Manufacturing Costs ●Marketing Costs

11. Potential Benefits ●Patent/Licensing rights ●Increase in revenue ●Better customer loyalty ●Major competitor in more industries o Wearable Technology-$19B o Health and Fitness Applications-$26B o Internet Radio Streaming-$1.3B

12. Drawback/Solution #1 ●Users that don’t use Apple/Beats earphones o Wrist Band - Same Technology, But Different  Apple Watch

13. Drawback/Solution #2 ●Need data/WiFi for Beats Music o Beats Music can save a playlist to your iPhone

14. Enhancing Apple’s Ecosystem Team 1 - Nir Hertz and Ronald Jordan