1. Industry Classification Computer Hardware and Related Software iMac MacBooks Mac Pro Desktops Mac Displays Time Capsule Xserve/ Mac Pro Servers Mac Mini Server Mac OS X Final Cut Studio Logic Studio iLife Aperture iWorks Apple Remote Desktop Media and Communication Devices iPhone iPod Apple TV iPad iOS Operating System Digital Media Content Music Movies E-books App Store

2. Computer Hardware Industry Overview A highly competitive industry A mature industry Market is characterized by frequent product introductions A few well-established companies, such as: HP (Global leader with 17.4% market share) Dell Acer Apple (Seventh in global market share (4.3%) Toshiba Lenovo Three main operating systems for personal computers: Microsoft Windows(used in 85-90% of PCs worldwide) Mac OS X Different flavors of Linux Intel Corp.’s processors are used in approximately 80%of PCs 79.2 % of US Market Share

3. Porter Five Force Analysis of Computer Hardware Industry Level of Threat in the Industry: Moderate to High Threat of New Entrants: Low Threat of Buyers: Low Threat of Suppliers: Moderate Threat of Substitutes: Moderate Threat of Rivalry: High

4. Threat of New Entrants Threat of new entrants is low in this industry; it stems from the following factors: Economies of Scale Product Differentiation Cost Advantages Independent of Scale Proprietary Technology Know How Favorable Access to Raw Material Learning-Curve Cost Advantages Customer-Switching costs Access to distribution

5. Threat of Rivalry The threat of rivalry is high,it is characterized by the following: Intense price competition Standardization of primary components such MS Windows as operating system and Intel as microprocessor Continuous Product Introductions

6. Threat of Substitutes The biggest substitute for PCs are the mobile computing platforms such as smartphones. As processing power and capabilities of smartphones is increasing; its appeal to the masses can not be under- estimated. There are at least 10 billion mobile units all over the world, which also allows internet access beside other functionalities. Thus, mobile platforms such as smartphones and tablets are a definite threat to PC market in the coming decade.

7. Threat of Suppliers

8. Threat of Buyers

9. Industry Trends

10. Mobile and Communication Device Industry Overview

11. Porter Five Forces for Mobile and Communication Device Industry

12. Threat of New Entrants

13. Threats of Rivalry

14. Threat of Substitutes

15. Threat of Suppliers

16. Threat of Buyers

17. Trends for Mobile and Communication Device Industry

18. Digital Media Content Industry Overview

19. Porter Five Forces

20. Threat of New Entrants

21. Threat of Rivalry

22. Threat of Substitutes

23. Threat of Suppliers

24. Threat of Buyers

25. Industry Trends