© 2008 Hitachi Global Storage Technologies

NetbookNetbook

Mar 12th, 2009Steven Liu

© 2008 Hitachi Global Storage Technologies 2

Agenda

Industry OutlineIndustry Outline. Netbook Era. Industry Business Highlights

NetbookNetbook GrowthGrowth. Net book Growth Rate. Move up Notebook rankings. PC Netbook. Mobile Phone Companies’ Join . Operators’ Join

NetbookNetbook OutlookOutlook. Netbook Component – Wintel . Netbook Component - Panel. Netbook Component - Storage

© 2008 Hitachi Global Storage Technologies 3

Industry OutlineIndustry Outline. Netbook Era. Industry business highlights

Netbook Growth. Growth Rate. Move up Notebook rankings . PC Netbook’s Join. Mobile Phone Companies’ Join. Operators’ Join

Netbook Outlook. Netbook Component - Wintel. Netbook Component - Panel. Netbook Component - Storage

© 2008 Hitachi Global Storage Technologies 4

2007 Apr Jun Sep - Dec Mar

20092008

Everex HP

ECSGigabyteMSIMitac

HP MSIDell SamsungLenovo SonyFujitsu BenQToshiba NEC

Asus

Acer

NokiaTaiwan MobileVodafoneLGChina MobileTIM/ Italy

Netbook Era

Source: DigiTimes, Jan, 2009

- 2007 2H Asus introduce the first generation Netbook “Eee PC” as Asus sub brand- 2008 2H Acer successfully enter the market with 5M shipment in 2008 2H- 2008 2H more PC companies launch their first generation Netbook into the market- 2009 1H mobile phone & operator companies start to join the market- 2009 1H China Whitebox Netbook start booming

© 2008 Hitachi Global Storage Technologies 5

Industry Business highlights

Outlook

New notebook design starts & become a monster in PC industry during financial crisis. Erode original Notebook market’s ASP, and also replace low cost desktop market.

Highlights

* Netbook growth rate 132% from 2008 to 2009.

* Netbook sales target 30M in 2009, 50M in 2010.

* Acer & Asus has over 90% Netbook share in 2008

. * SSD adopt rate falls less than 10% in 2009

* Netbook sales moves in Notebook ranking

© 2008 Hitachi Global Storage Technologies 6

Industry Outline. Netbook Era. Industry Business Highlights

NetbookNetbook GrowthGrowth. Net book Growth Rate. Move up Notebook rankings. Mobile Phone Companies’ Join. Operators’ Join . PC Netbook Specs

Netbook Outlook. Netbook Component - Wintel. Netbook Compoent - Panel. Netbook Component - Storage

© 2008 Hitachi Global Storage Technologies 7

Netbook Growth Rate

0%

100%

31% 30%

100%

200%

18% 20%

0%

40%

80%

120%

160%

2007 2008 2009 2010

M un its

Notebook Netbook Tota l

Netbook YTY growth rate in 2009 are expected to 200%, contribute total Notebook by 18% growth rate. Notebook is only 5% growth

Source: MIC, 2009

© 2008 Hitachi Global Storage Technologies 8

Netbook Move Up in Notebook

1%

9%

19%

25%

0

40

80

120

160

200

2007 2008 2009 2010

M un its

0%

10%

20%

30%

40%

Notebook Netbook Netbook Share on Notebook

Netbook shipment are expected to be 30M units, which contribute make 19% of the overall Notebook market in 2009

Source: MIC, TW

© 2008 Hitachi Global Storage Technologies 9

PC Netbooks with Specs

Model Aspire One Aspire One Eee PC 901 Eee PC 1000 Eee PC 904HD 2133 2140

Weight (KG) 0.99 1.26 0.99 1.45 1.4 1.27 1.27

Display Size 8.9" 10.2" 8.9" 10.2" 8.9" 8.9" 8.9"

Processor Atom Atom Atom Atom Celeron-M Atom Atom

Storage Type SSD/HDD SSD/HDD SSD SSD/HDD HDD SSD/HDD HDD

Storage Size (GB) 8,16 / 120, 160 8,16 / 120, 160 12, 20 40, 80/120, 160 80 4 / 120, 160 120, 160

RAM (GB) 0.5 - 1 1 - 2 1 1 - 2 1 0.5 - 2 0.5 - 2

Battary (Cell) 3, 6 3, 6 4 6 6 6 6

OS System Windows XP Windows XP Linux, XP Home XP Home XP Home Vista, XP/Linux Vista, XP/Linux

Market Schedule Jun, 2008 Feb, 2009 Jun, 2008 Jun, 2008 Sep, 2009 May, 2008 Dec, 2008

NetbookComparison

HP Mini NoteAcer Aspire One Asus Eee PC

© 2008 Hitachi Global Storage Technologies 10

PC Netbook Specs ( cont )

Lenovo Idea Pad

Model Mini 9 Mini 12 Mini 10 NB100 NB105 S10 U100 U120

Weight (KG) 1.06 1.24 1.05 1 1 1.2 1.18 1.1

Display Size 8.9" 12.1" 10.2" 8.9" 8.9" 10.2" 10.2" 10.2"

Processor Atom Atom Atom Atom Atom Atom Atom Atom

Storage Type SSD HDD HDD HDD HDD HDD HDD HDD

Storage Size (GB) 4, 8, 16, 32 80/120/160 120/160 80/120/160 120 80/160 80/120/160 20, 40/120

RAM (GB) 0.5 - 1 1 1 0.5 - 1 1 0.5 - 1 0.5 - 1 0.5 - 1

Battary (Cell) 4 6 6 4 6 3 6 6

OS System XP/ Linux Vista Home/Linux Vista Home/LinuxVista Home/Linux Vista Home Windows XP Vista Home/Linux Vista Home/Linux

Market Schedule Sep, 2008 Sep, 2008 Mar, 2009 Sep, 2008 Dec, 2008 Oct. 2008 Jun, 2008 Dec, 2008

MSI Wind

NetbookComparison

Dell Inspiron Toshiba

© 2008 Hitachi Global Storage Technologies 11

Mobile Phone Companies’ join

Outlook

Mobile phone company decides to leverage their banding to defend PC companies’ aggressively package deal with operator

Highlights

* Nokia CEO announce in WMC ( Android Platform )

* Samsung & LG launch in US/EMEA market

. * Sony Ericsson ( leverage VIAO series )

* Motorola ?

© 2008 Hitachi Global Storage Technologies 12

Operators’ join

Outlook

Operators start to consider to extend their package from free phones to free Netbooks. Especially Netbook cost is close to current smart phones.

Taiwan Mobile just launched

Italy T Mobile ready to launch

UK Vodafone ?

US AT&T, Packard Bell ?

China Telecom & China Mobile ?

Japan NYY DoCoMo ?

© 2008 Hitachi Global Storage Technologies 13

Netbook Growth. Growth Rate. Move up Notebook rankings . Business Outlook

NetbookNetbook OutlookOutlook. Netbook Component – Wintel . Netbook Component - Panel. Netbook Component - Storage

Netbook Growth. Growth Rate. Move up Notebook rankings . PC Netbook’s Join. Mobile Phone Companies’ Join. Operators’ Join

Industry Outline. Netbook Era. Industry Business Highlights

© 2008 Hitachi Global Storage Technologies 14

Netbook Component - Wintel Architecture

CPU: Intel vs VIA, ARM, ( AMD no interest ? )

OS: Microsoft XP vs Microsoft 7.0

Microsoft XP vs Linux (Google Android )

Revenue & Profit ?

© 2008 Hitachi Global Storage Technologies 15

Netbook Component - Panel

Source: IDC, 2008

Panel size moves from 7” to 10.2” now, next moves will be 11.1” by 2010

© 2008 Hitachi Global Storage Technologies 16

Netbook Component - Storage

- SSD adopt rate falls under 10% in 2009, big shift to 2.5” HDD- 160G t 250G ?

160GB

120GB

80GB

40GB

32GB

20GB

16GB

12GB

8GB

HDD SSD

Acer

Acer

Asus

Asus

Asus

Dell

Dell

Dell

Dell

Dell

Dell

Lenovo

Lenovo

Toshiba

Toshiba

Toshiba

MSI

MSI

Asu

Asus

Acer

Asu

Asus

HP

HP

MSI

MSI

MSI

© 2008 Hitachi Global Storage Technologies 17

Thank You