Apple compete: MRD & image definition

1. Apple compete:MRD & image definition Scott Menscher Software Product Marketing Updated 2/17/11

2. Table of contents • MRD • Summary • Opportunity • MacBook Switchers • Students • Key Focus Experiences • MacBook vs. Pavilion dm4 • Image Definition • Backup

3. MRD

4. Summary • Goal • Collaborate with MSFT to create products that can compete favorably head-to-head with Apple’s 13” MacBook/Pro • Compete with the Apple user experience while providing a better value • Address the end-to-end value chain, including GTM • Target Market • Students purchasing a notebook for college in the 2c11 timeframe • Solution • Launch: 2c11 • Platforms: Zidane 2.0 (dm4) • Channel: Retail • Localizations: ALL • Focus is on US, Canada, UK, France, & Germany • Bundles: Investigating adding other HP HW to complete the student exp.

5. Summary • HP’s opportunity • Improve the Windows experience with the help of MSFT • Stop Apple Considerers from switching to Macs • Improvements can then be leveraged by all HP notebooks • Be competitive in higher price bands • Help uplift ASPs/ build brand value • Help fix GTM efforts • Defining Success • Gain assortment of Apple Compete product in retail • Sell 100k volume of Apple Compete product • Retailer anecdotal info of customers purchasing product over MacBooks • Market and create buzz/awareness of Apple Compete product

6. Landscape • The Market Today • Apple is winning in the premium PC space ($800+) • HP has lost premium share YoY while Apple makes gains • Apple share = roughly 25%; HP share = roughly 10% • In US, Apple owns near 100% in $1000+ price band • Apple switching risk is high across markets • About 7.7M premium PC units ($800+) are at risk in FY11 • Apple is making dramatic gains with students

7. Macbook Switchers • Why Did They Switch? (in order) • 1) Apple/Mac offered the features they wanted • 2) Appearance of the computer • 3) Apple/Mac was recommended over Windows PC • 4) iLife suite • 5) Experiences with iPod/iPhone and iTunes • “Why not another Windows PC?” (in order) • 1) Apple/Mac is more secure • 2) Apple/Mac is more reliable • 3) Frustration using Windows OS • 4) Apple/Mac OS is better • 5) Frustration with using devices on Windows PC • 6) Apple/Mac runs faster

8. Macbook Switchers • Experiences Considered Better on a Mac versus PC • PC’s main better experience among this group was GAMING

9. Students • What Students Value (in order) • 1) Power/Performance 5) Feature Package • 2) Price 6) Design • 3) Battery Life 7) Brand • 4) Weight • Top PC Activities (over 50%) • Email • Work (productivity) • Downloading music or videos • Watching DVDs locally • Watching TV shows, movies, or general videos on the Internet • Chat (IM or webcam) • Burn, backup, and storing of music, photos, or videos • Gaming

10. KEY FOCUS EXPERIENCEs Windows Taskbar improvements Wireless Display MS Office 2010

11. Macbook versus pavilion DM4 • Students’ Top PC Activities Compared (Pre-install) • Pavilion DM4 Experience Advantages • WiDi • MS Office (pre-install and upgrade pricing) • Cloud Storage

12. Macbook versus PAVILION DM4 • Pavilion dm4 HW Advantages (based on current MacBook) • HP Pavilion dm4 • Bigger screen • Faster CPU & video card • More RAM • Bigger HDD • WiDi support + better BT • HD webcam • More USB + HDMI & VGA ports • Fingerprint reader • Weight

13. Macbook versus PAVILION DM4 • Attacking Apple Switchers’ Perceptions 1) Frustration using Windows OS, as well as devices on Windows • Mitigation: • Message Windows 7 benefits more effectively to consumers • Big leap in UX over Vista, including better “plug and play” support • Windows 7 gets great reviews 2) Apple/Mac is more secure and more reliable • Mitigation: • Ship with 1-year NIS 2011 and upgraded 2-year warranty 3) Apple/Mac runs faster and is better • Mitigation: • SKU has better specs and uses the latest & greatest technology • Best in class velocity scores • De-clutter the image • Message the power of the Windows ecosystem more effectively • More software, more accessories, more customization, more choice

14. Macbook versus PAVILION DM4

15. Image definition

16. 2c11 vs. 3c11 changes • 2c11 Changes: • OOBE: Removal of HP portion & 10-day delay of registration • Applications: Removal of SW (mostly BtB); add MS Math & NIS 1-year • Desktop: Removal of all DT icons except Recycle Bin (and later NIS) • Notification Area: Move some icons to Control Panel (5 icons will remain) • Start Menu: New MFU items; small clean-up of “All Programs” • IE Favorites: Add MS Live@edu links • Other: Removal of HP logo at POST; new Energy Star changes • 3c11 Incremental Changes: • Notification Area: Move more icons to Control Panel (3 icons will remain) • Start Menu: Finish clean-up of “All Programs” • Other: AutoPlay default changes; auto-update of Adobe items and Sun Java (?); will push for other OPK changes

17. 2c11 changes

18. 2c11: oobe • OOBE Changes: • Remove complete HP OOBE section • Will rely on Microsoft OOBE instead • Schedule HP Registration screen to display 10 days after OOBE • NIS 2011 EULA no longer in OOBE • User can agree to NIS EULA when splash screen is initially shown

19. 2C11: Applications • Windows Live 2011 Essentials • HP Movie Store • CyberLinkYoucamBE • OmnifoneMusic Station • HP Games • Adobe Flash Player • Adobe Shockwave Player • Symantec NIS 2011 (60-day trial for US; 180-day trial for Costco, 1-year subscription for rest of the world) • HP SimplePass ID Protection 2011 • HP ProtectSmart • HP Power Manager • LoJackStart Menu Tweak • HP CoolSense • Dolby Home Theater • MS Math 4.0 (for single language images only) • Adobe Photoshop Elements 9 (for LA & Canada only) • Adobe Premiere Elements 9 (for LA & Canada only) • Base Zidane 2.0 app list • MS Windows 7 Home Premium SP1 • Internet Explorer 9 • Blio • HP Setup Manager • eBay • Bing Bar • HP Support Assistant • User Guides • Adobe Reader • Recovery Manager • MS Silverlight • Evernote • HP Connection Manager 4.0 (pre-load only) • Skype • Sun Java • EasyBits (Magic Desktop) • Intel Wireless Display • MS Office 2010 (Starter) • Quicken Financial Center

20. 2C11: APPLICATIONS

21. MS Math 4.0: language support • Preinstall MS Math ONLY on single language images • See above for full localization list

22. 2c11: Desktop (La & canada) • Clean desktop (NO icons except Recycle Bin) • NIS 2011 will put an icon on DT after user agrees to EULA and registers product Adobe Photoshop Elements 9 Evernote Adobe Premiere Elements 9 Battery Microsoft IE9 Windows Explorer Windows MP NIS 2011 1:15 PM

23. 2c11: Desktop (REST OF WORLD) • Clean desktop (NO icons except Recycle Bin) • NIS 2011 will put an icon on DT after user agrees to EULA and registers product Skype (For Nordics: HP Setup Manager) CyberLinkYouCam BE Evernote Battery Microsoft IE9 Windows Explorer Windows MP NIS 2011 1:15 PM

24. 2c11: DEFAULT Desktop WALLPAPER • Change default wallpaper from “City Wires” to “Grow” Current Wallpaper NEW Wallpaper “Grow” “City Wires”

25. 2c11: Notification area Notification Area Hidden Icons: • Remove: • Touchpad • IDT Audio Battery NIS 2011 1:15 PM • Keep: • MS Action Center (show only notifications) • Bluetooth • HP CoolSense • Intel Rapid Storage • Intel My WiFi • Intel Graphics • AMD Graphics

26. 2C11: NOTIFICATION AREA After Before

27. 2c11: hw Enabling touch points

28. 2c11: Start Menu: mfu ITEMS (v3) Getting Started HP Setup Manager Xxxxxxxxxxx Getting Started Jerry Computer Network Connect To Control Panel Default Programs Help and Support Xxxxxxxxxxx Xxxxxxxxxxx Xxxxxxxxxxx HP Support Ass. WL Mail WL Photo Gallery WL Movie Maker WL Messenger Xxxxxxxxxxx Fab Welcome Xxxxxxxxxxx Xxxxxxxxxxx Xxxxxxxxxxx Xxxxxxxxxxx Xxxxxxxxxxx All Programs All Programs Start Search 1:15 PM

29. 2C11: START MENU: BEFORE & AFTER (v3) Before After

30. 2C11: START MENU: ALL PROGRAMS (v3)  “Windows Live”  “Windows Live”  “Music & Media (Keep as is) (Keep as is) (Keep as is) (Keep as is) (Keep as is) Deleted (Keep as is) Deleted  “Online Services” Deleted (Keep as is) (Keep as is) (Keep as is) Deleted (Keep as is)  “Microsoft Office 2010” See next few slides  “Online Services”  “Online Services” (Keep as is) (Keep as is) (Keep as is)  “Windows Live”  “Windows Live”

31. 2C11: START MENU: ALL PROGRAMS (v3) No changes to existing Microsoft items

32. 2C11: START MENU: ALL PROGRAMS (v3) Deleted (whole folder) *note: not on image* Deleted Deleted (preload only, not preinstall) Move to Control Panel – Hardware & Sound  “Music & Media” (whole folder) Deleted Move to Control Panel – Hardware & Sound Deleted Deleted  “Productivity” (whole folder) Deleted Move to Control Panel – Hardware & Sound Deleted Deleted Move to Control Panel – Hardware & Sound Move to Control Panel – Hardware & Sound Deleted Deleted Deleted Deleted Move to Control Panel – Hardware & Sound

33. 2C11: START MENU: ALL PROGRAMS (v3) Already moved to “HP” folder Deleted Deleted Move to Control Panel – Hardware & Sound Deleted Deleted (not on image) Deleted Deleted (just the link, not the app) Deleted Deleted (just the link, not the app) • “Security” (whole folder) Deleted Deleted

34. 2C11: NEW ENERGY STAR CHANGE Before • Changes: • Remove “Energy Star” and “Power Saving” items from Start Menu (in MFUs and in “All Programs”) • Move HP Power Manager to Control Panel (Hardware and Sound) & change icon to Energy Star logo • Add HP Power Manager (and Energy Star logo) to context menu when right-clicking Battery icon in Notification Area Start Menu: MFUs Start Menu: All Programs After Battery icon context menu Control Panel (HW & Sound)

35. 2c11: IE9 Favorites • Favorites • HP Store (US only) • HP Download Store (US only) • PC Security (US only) • PC Learning Center (US only) • Support: Software and Driver Downloads • HP Photo Center Powered by Snapfish • HP Games Powered by Wild Tangent • eBay • MS Live@edu

36. 2c11: Acceler., Web slices, search • Accelerators • Windows Live • Bing Maps • Skype • eBay • Web Slices • HP Attach • eBay • HP Games • Amazon • Search • Bing (Default) • Yahoo • Ask.com • eBay • Wikipedia • Amazon

37. 2c11: Other Changes • Other changes: • Boot-Up/OOBE time optimizations • Targets: • Boot up: < 30 seconds (BIOS POST: 5 seconds) • S3 sleep: < 2 second • S3 resume: < 1 second • Shut down: < 5 seconds • Remove HP logo from showing at boot

38. Zidane 2.0: Volumes & Localizations • Zidane 2.0 Volumes • 2c11 Forecast:442k • NA: 342,400 • EU: 59.400 • LA: 40,000 • APJ: 0

39. 3c11 incremental changes(Not locked yet)

40. TASKBAR “NIRVANA” APP LAUNCHER • “Nirvana” (official name TBD – may be “HP QuickStart”) • Application launcher • User mouses over and clicks on icons in preview window to launch apps • Runs at startup • User can edit items in each container through “Settings” app (discoverable in Jump List) • Limited to applications only • Limited to 3 total Nirvana containers and a max of 9 items per container

41. 3c11: Notification area

42. 3c11: Start Menu: mfu ITEMS Getting Started • Investigating with MSFT the possibility of ONE Windows Live MFU that has a flyout list of all Live apps • If this occurs, then the MFU list to the left will change HP Setup Manager Xxxxxxxxxxx Getting Started Jerry Computer Network Connect To Control Panel Default Programs Help and Support Xxxxxxxxxxx Xxxxxxxxxxx Xxxxxxxxxxx HP Support Ass. WL Mail WL Photo Gallery WL Messenger HP Documentation Xxxxxxxxxxx Fab Welcome Xxxxxxxxxxx Xxxxxxxxxxx Xxxxxxxxxxx Xxxxxxxxxxx Xxxxxxxxxxx All Programs All Programs Start Search 1:15 PM

43. 3C11: START MENU: BEFORE & AFTER Before After TBD

44. 3C11: AUTOPLAY (USB KEY) Before After

45. 3C11: AUTOPLAY (BLANK CD/DVD) Before After Essentially, “Burn files to disc” should be the default and this dialogue box should not be displayed.

46. 3c11: Other Changes • Other changes: • Boot-Up/OOBE time optimizations • Targets: • Boot up: < 30 seconds (BIOS POST: 5 seconds) • S3 sleep: < 2 second • S3 resume: < 1 second • Shut down: < 5 seconds • Adobe: stop adding a DT icon for Reader after every update • Java: enable auto update capability

47. Backup

48. 2C11: APPLICATIONS

49. 2C11: APPLICATIONS

50. ZIDANE 1.0 MSFT SIG. IMAGE: START MENU