May 9, 2001 2

USB 2.0 Opportunities in Retail

USB 2.0 Opportunities in Retail

Dan ClementsDan ClementsConsumer Products and Technology ManagerConsumer Products and Technology Manager

Circuit City Stores Inc.Circuit City Stores Inc.

May 9, 2001 3

The Extended PC The Extended PC

““The PC is a wonderful device for personal The PC is a wonderful device for personal productivity, for computing, for accessing productivity, for computing, for accessing information, but when you attach other information, but when you attach other devices, you give the end user more devices, you give the end user more excitement and capability, moreexcitement and capability, moreopportunity to do things.”opportunity to do things.”

— — Craig BarrettCraig BarrettCEO Intel CEO Intel 2001 CES Keynote 2001 CES Keynote 1/5/20011/5/2001

May 9, 2001 4

The Extended PC The Extended PC

Key Technologies for the Extended PCKey Technologies for the Extended PC– USB 2.0- Wired Connection for Performance PeripheralsUSB 2.0- Wired Connection for Performance Peripherals

and Upgradesand Upgrades– Windows XP- Ease of use, new features, enhanced performance Windows XP- Ease of use, new features, enhanced performance

and stability and stability – Ethernet and 802.11b - Wired and Wireless connectionEthernet and 802.11b - Wired and Wireless connection

of multiple PCs and devicesof multiple PCs and devices– Broadband - Always on, rapidly delivered rich contentBroadband - Always on, rapidly delivered rich content– IEEE-1394b for A/V clusters- Bringing the home entertainment IEEE-1394b for A/V clusters- Bringing the home entertainment

cluster and PC togethercluster and PC together– UPnP- Framework for device detection, discovery andUPnP- Framework for device detection, discovery and

usage across multiple networksusage across multiple networks

May 9, 2001 5

The Extended PC The Extended PC

USB 2.0 benefits to the Extended PCUSB 2.0 benefits to the Extended PC– Enables High Performance PC peripheralsEnables High Performance PC peripherals

Storage FunctionsStorage Functions BroadbandBroadband High Quality Video functionsHigh Quality Video functions

– Enables multiple high performance and low speed Enables multiple high performance and low speed device to comfortably share the bandwidth without device to comfortably share the bandwidth without degrading the consumer experience degrading the consumer experience

May 9, 2001 6

Consumers and USB Consumers and USB

Ease of UseEase of Use– Plug and Play- It Just Works!Plug and Play- It Just Works!– External Expansion- No screw driver, No circuit boardsExternal Expansion- No screw driver, No circuit boards– One Plug Fits All- More like plugging in an applianceOne Plug Fits All- More like plugging in an appliance

SpeedSpeed– Faster than legacy portsFaster than legacy ports

FlexibleFlexible– Simultaneous connection of multiple devicesSimultaneous connection of multiple devices– Devices can act as hubs for other devicesDevices can act as hubs for other devices

May 9, 2001 7

Retail Perspectives on USBRetail Perspectives on USB

Ease of UseEase of Use– Greater Sales OpportunitiesGreater Sales Opportunities– Lower ReturnsLower Returns– Lower Support CostsLower Support Costs

Standard InterfaceStandard Interface– Rational Product AssortmentsRational Product Assortments– Cross Platform UtilityCross Platform Utility

May 9, 2001 8

USB 1.1 in Current Products USB 1.1 in Current Products

Computers and Notebooks Computers and Notebooks – $9B US Retail Market- 100 % of Assortment$9B US Retail Market- 100 % of Assortment

PrintersPrinters– $2.2 B US Retail Market -97% of Assortment$2.2 B US Retail Market -97% of Assortment

Scanners Scanners – $572 M US Retail Market- 94% of Assortment$572 M US Retail Market- 94% of Assortment

Digital Cameras Digital Cameras – $1.9 B US Retail Market- 92% of assortment$1.9 B US Retail Market- 92% of assortment

PC Upgrades/Peripherals PC Upgrades/Peripherals – $3.4 B US Retail Market- 36% of assortment$3.4 B US Retail Market- 36% of assortment

May 9, 2001 9

USB 1.1 in CurrentProducts Printers USB 1.1 in CurrentProducts Printers

Retail Channel Printers by Connection Type

83.94

30.99 30.77

50.33

47.33

65.4953.73

37.244.81

77.3384.45 83.77 86.9887.6586.69

0

25

50

75

100

PARALLEL USB ONLY USB COMBO

Retail Channel Printers by Connection Type

83.94

30.99 30.77

50.33

47.33

65.4953.73

37.244.81

77.3384.45 83.77 86.9887.6586.69

0

25

50

75

100

PARALLEL USB ONLY USB COMBO NPD Intelect Data

May 9, 2001 10

USB 1.1 in CurrentProducts Scanners USB 1.1 in CurrentProducts Scanners

Retail Channel Scanners by Connection Type

43.94

67.7579.3277.58

71.5770.8273.48

55.05 52.4 48.88 53.91 52.9360.98

64.48 65.49

0

25

50

75

100

PARALLEL USB USB COMBO

Retail Channel Scanners by Connection Type

43.94

67.7579.3277.58

71.5770.8273.48

55.05 52.4 48.88 53.91 52.9360.98

64.48 65.49

0

25

50

75

100

PARALLEL USB USB COMBO NPD Intelect Data

May 9, 2001 11

USB 1.1 in CurrentProducts PC Cameras USB 1.1 in CurrentProducts PC Cameras

Retail Channel PC Cameras by Connection Type

98.56 97.32 98.03 98.14 98.48 98.5 99.06 99.24 99.37 99.04 99.47 99.22 98.51 98.92

98.83

0

25

50

75

100

125

PARALLEL USB Serial

Retail Channel PC Cameras by Connection Type

98.56 97.32 98.03 98.14 98.48 98.5 99.06 99.24 99.37 99.04 99.47 99.22 98.51 98.92

98.83

0

25

50

75

100

125

PARALLEL USB Serial NPD Intelect Data

May 9, 2001 12

The Reality of USB 1.1The Reality of USB 1.1

USB devices are returned by end users in USB devices are returned by end users in numbers comparable to legacy devices numbers comparable to legacy devices

Many PC’s still ship with PS/2 Mouse and KBMany PC’s still ship with PS/2 Mouse and KB Sales of IEEE-1284 printer cables continue to Sales of IEEE-1284 printer cables continue to

indicate that most printers are using legacy portsindicate that most printers are using legacy ports

May 9, 2001 13

Challenges with USB 1.1Challenges with USB 1.1

Order of Installation Issues- Consumer plugs Order of Installation Issues- Consumer plugs device into computer prior to loading proper device into computer prior to loading proper drivers and is unable to get the device to work.drivers and is unable to get the device to work.

Drop in the Box- Software bundled with the USB Drop in the Box- Software bundled with the USB device defaults to a different connection type, device defaults to a different connection type, items in the box that only tangentially relateitems in the box that only tangentially relate

System Tray / Performance- The computers System Tray / Performance- The computers overall stability/performance suffers when overall stability/performance suffers when multiple applications are loaded at boot upmultiple applications are loaded at boot up

May 9, 2001 14

Challenges with USB 1.1Challenges with USB 1.1

Hub Dynamics Hub Dynamics – Managing powered Hubs and host powered devices Managing powered Hubs and host powered devices – Devices that can support a USB port should provide Devices that can support a USB port should provide

one, particularly scanners and printer. one, particularly scanners and printer. – Connections through hubs and devices only becomes Connections through hubs and devices only becomes

more complicated with USB 2.0more complicated with USB 2.0

May 9, 2001 15

Ease of Use OpportunitiesEase of Use Opportunities

Ensure the consumer has an PositiveEnsure the consumer has an PositiveInitial ExperienceInitial Experience– Sweat the DetailsSweat the Details

Document Installation Document Installation Universal Logo’s, Labels, Color CodingUniversal Logo’s, Labels, Color Coding

– Limit Opportunity for FailureLimit Opportunity for Failure Solid Signed Drivers Solid Signed Drivers ““Every item in the box is the product” Every item in the box is the product” Software installs cleanly and is configured to use deviceSoftware installs cleanly and is configured to use device Use the O/S wizardsUse the O/S wizards

May 9, 2001 16

Retail USB 2.0 Wish List Retail USB 2.0 Wish List

USB 2.0 Logo ProgramUSB 2.0 Logo Program– Submit Products, Certify Products, Submit Products, Certify Products,

Participate in Plug-FestsParticipate in Plug-Fests– Consumer ConfidenceConsumer Confidence

Logo = QualityLogo = Quality Logo = CompatibleLogo = Compatible Logo = SolutionLogo = Solution

– Our Direction at the Store LevelOur Direction at the Store Level ““Look for the logo as an indicationLook for the logo as an indication

of a quality product that will workof a quality product that will workfor you” for you”

May 9, 2001 17

Retail USB 2.0 Wish List Retail USB 2.0 Wish List

USB 2.0 USB 2.0 – MarketingMarketing

Speed Sells- Make clear speed statements Speed Sells- Make clear speed statements 40x Performance is a spec made for retail40x Performance is a spec made for retail

– Differentiate New High Performance Product ! Differentiate New High Performance Product ! Packaging Packaging

Prior to OEM integration - Prior to OEM integration - Ship USB 2.0 cards with productsShip USB 2.0 cards with productsBundle OpportunitiesBundle Opportunities

DocumentationDocumentation Clearly indicate limitations on USB 1.1 hostClearly indicate limitations on USB 1.1 host

May 9, 2001 18

Retail USB 2.0 Wish List Retail USB 2.0 Wish List

USB 2.0 USB 2.0 – Document USB 2.0 Capable Product Document USB 2.0 Capable Product

Packaging Packaging Highlight backward and forward compatibilityHighlight backward and forward compatibility

DocumentationDocumentation Clearly indicate limitations on USB 1.1 hostClearly indicate limitations on USB 1.1 host

May 9, 2001 19

USB 2.0 and Windows XPUSB 2.0 and Windows XP

Windows XPWindows XP– We believe Windows XP represents a chance to We believe Windows XP represents a chance to

dramatically improve the customer experience with dramatically improve the customer experience with both new and existing productsboth new and existing products

– Ease of Use, New O/S Features and Stability can ignite Ease of Use, New O/S Features and Stability can ignite industry salesindustry sales

– Make your product part of the solution and make the Make your product part of the solution and make the transition smooth for the consumertransition smooth for the consumer

May 9, 2001 20

USB 2.0 and Windows XPUSB 2.0 and Windows XP

Windows XP Logo ProgramWindows XP Logo Program– Get your solutions Logo’d! (including allGet your solutions Logo’d! (including all

in-the-box technology)in-the-box technology) Helps Consumers identify a quality solutionHelps Consumers identify a quality solution Reduce product returnsReduce product returns Lower supportLower support

– ““When our customer make their buying decisions they When our customer make their buying decisions they will be looking for the logo and so will Circuit City.”will be looking for the logo and so will Circuit City.”

May 9, 2001 21

Calls to ActionCalls to Action

Bring New Performance Products to MarketBring New Performance Products to Market USB Certified Logo ProgramUSB Certified Logo Program Windows XP Logo ProgramWindows XP Logo Program EoU RoundtableEoU Roundtable

– Peripherals WhitepaperPeripherals Whitepaper– Upcoming Peripheral Initial Experience Tool Upcoming Peripheral Initial Experience Tool

www.eouroundtable.comwww.eouroundtable.com