RUSS ERNSTVice President, Product ManagementBlancco Technology Group

HOW FAR SMARTPHONE PERFORMANCE HAS COME

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Smartphone OS Market Share, Q1 2016

Android vs. iOS Device Performance, Q1 2016

European Device Performance Issues, Failures & NTF Returns, Q1 2016

Device Optimization Tips

05Combatting the NTF Return & Customer Churn Problem

What We’ll Cover

SMARTPHONE OS MARKET SHARE,Q1 2016

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Android Dominates OS Market Share inQ1 2016

75.6%

Android

Windows

4.9% 18.9%

iOS

Source: Kantar Worldpanel Comtech, Q1 2016 Smartphone OS Market Share

7.1%EU5

YoY Increase

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Android Sees Strongest Growth in EU5 Region

Source: Kantar Worldpanel Comtech, Q1 2016 Smartphone OS Market Share

In EU5 region, Android’s growth is attributed to a drop in Windows device sales from 9.9% to a mere 4.9%, while iOS market share in the region dropped from 20.2% to 18.9%.

Germany

Great Britain

France Spain Italy

Android: 76.1%

iOS: 17.8%

Windows: 4.9%

Blackberry: 0.9%

Other: 0.3 %

Android: 58.8%

iOS: 34.8%

Windows: 6.2%

Blackberry: 0.1%

Other: 0.1%

Android: 74.3%

iOS: 20.0%

Windows: 5.0%

Blackberry: 0.3%

Other: 0.4%

Android: 92.9%

iOS: 6.4%

Windows: 0.6%

Blackberry: 0.0%

Other: 0.0%

Android: 78.3%

iOS: 14.8%

Windows: 6.3%

Blackberry: 0.5%

Other: 0.1%

ANDROID VS. IOS DEVICE PERFORMANCE, Q1 2016

Android Devices Fail Almost Twice as Much as iOS

Android Device Performance, Q1 2016

vs.

iOS Device Performance, Q1 2016

Why Is Android Performance Lagging Behind iOS?

74% of Android Apps

Crashed in Q1 2016

Top 10 Android Crashing Apps by Category, Q1 2016

Top 10 Android Crashing Apps by Name, Q1 2016

44% of Android Devices had

Open/Cached Apps

Android Popularity Doesn’t Match Performance

Despite popularity, functionality is often subpar to iOS

Historical pattern of hardware and software problems (i.e. random reboots, crashing apps)

OS development flaws and bugs (i.e. Android System Webview update, April 2015)

Could Poor Performance Hinder Future Market Share?

Improper diagnostics testing persistent performance issues & increased failures

Increased performance issues Android users switching to iOS, Windows and other OS platforms

Less customer loyalty drop in device sales and market share

EUROPEAN DEVICE PERFORMANCE ISSUES, FAILURES & ‘NTF’ RETURNS, Q1 2016

Top 5 Performance Issues in Europe, Q1 2016

Carrier Signal: 35%

SD Card: 29%

Carrier Signal-Dual

SIM: 15%

Dual SIM: 15%

Auto Focus: 6%

Understanding ‘What’ & ‘Why’ of Key Performance Issues

What: Signal strength is weak on smartphone Why: Carrier network outage or damaged SIM card slot

SD Card

What: Unable to read SD cardWhy: Damaged SD card slot or extension

What: Weak signal strength on dual-SIM smartphoneWhy: Pulling from two networks eats into battery power and overall device performance

TouchWhat: Unresponsive touch screenWhy: ‘Dead’ spot on screen or hardware problem

Camera

What: Unable to take photos/videosWhy: Insufficient storage space (due to excessive photo/video files) or hardware problem

Carrier

Signal

Dual SIM

What’s Behind Increase in Device Failure Rates in Europe?

Q4 2015 Q1 2016

29%

35% Use of older smartphone models

Increased popularity of dual SIM smartphones

Slower network speeds (2G, 3G)

User behavior (i.e. keeping multiple apps open, increased frequency of app use, turning location data on, overcharging battery)

Insufficient memory/storage space

Hardware defect or damage (i.e. dropped)

What’s Behind Decrease in NTF Return Rates in Europe?

71% 65%

Q4 2015 Q1 2016

Users more aware of impact of behavior on device performance –> self-correcting for longer device lifecycle

More savvy users DIY fixers

Better skilled & trained mobile customer service/repair staff equipped with diagnostics tools quicker handling time & less unwarranted returns

Manufacturers building more sophisticated, stable smartphones

DEVICE OPTIMIZATION TIPS

Keep Smartphones Running Smoothly

Optimize App Functionality.

Improve Camera Functionality.

Resolve Auto-Focus Failures.

Troubleshoot Carrier Signal Issues.

Resolve SD Card Issues.

Resolve Unresponsive Touch Screen.

Fix: Regularly clear the app cache on your device.

Fix: Free up storage and move photos/videos to the cloud.

Fix: Remove third party photography apps like Instagram.

Fix: Check if subscriber’s account is active and that the SIM card slot is working properly.

Fix: Determine if the SD card slot is damaged or if the SD card format can be read by your device.

Fix: Clear out temporary Internet files, cookies and browsing history.

Keep Smartphones Running Smoothly

Improve Battery Shelf Life.

Improve Storage & Battery Life.

Refresh Operating System & Optimize Performance.

Be less wasteful with Wi-Fi.

Improve Battery Shelf Life & Reduce Data Usage.

Optimize Device Resources.

Fix: Stop overcharging your battery. Only charge your device if the battery is less than 25 percent.

Fix: Don’t install multiple anti-virus apps. It won’t make your device more secure, but will deplete your device’s storage & battery.

Fix: Reserve two days a week to shut down your device completely.

Fix: Turn off the Wi-Fi when the device is not in use or near a Wi-Fi connection point. This saves battery power.

Fix: Turn off the “cellular” feature for apps

Fix: Tidy up open/cached apps by closing down apps open in the background as often as possible.

COMBATTING THE NTF RETURN & CUSTOMER CHURN PROBLEM

Scale of Mobility Challenges

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Device/Subscription Plan Price Wars Customer/Employee Experience Challenges

High Customer Churn Costly NTF Returns/ProductionInefficiencies

A Need for Quick, Accurate & Reliable Diagnostics

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Crashing Apps Were Major Problem on Android Devices

Users Seek Help to Diagnose/Repair Issues

Within 3 DaysFaulty Mobile Functionality Is

the Norm

Users Switch to Different Carrier/OEM Due to Device

Issues & Poor Customer Care

31%

64%

49%

74%

Source: Blancco Technology Group “It’s Complicated, Mobile Frustrations & Churn,” August 2015

Source: Blancco Technology Group “Q1 2016 State of Mobile Device Performance & Health,” May 2016

NTF Returns cost the mobile industry $4.5 billion each year.

Improper Diagnostics Drives NTF Returns

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INCREASED PERFORMANCE ISSUES, FAILURES & NTF RETURNSWhen device issues are improperly and inaccurately diagnosed, this leads to an increase in performance issues, failures and NTF returns.

LESS CUSTOMER LOYALTYWhen performance issues, failures and NTF returns increase, this causes frustrations among mobile users – leading them to switch to a competing carrier/OEM.

DROP IN SALES & MARKET SHARE As customers switch to competitors and become less loyal, this leads to a drop in

sales and overall market share.

How Can You Combat the NTF Return Problem?

Source: Booz Allen Hamilton, “Mobile Device Returns and Repairs: Reshaping the Reverse Supply Chain”

Quick, Accurate & Reliable DiagnosisGet to the bottom of what’s really causing performance issues, thereby improving the customer experience post-sale.

Reduced Customer Churn & Increased NPSEnsure devices may run smoothly and have longer lifecycles, thereby keeping mobile users more satisfied, engaged and loyal.

Less NTF Returns & Production InefficienciesCombat the persistent problem of NTF returns and DOA shipments, while improving production and repair process efficiencies .

Cost SavingsSave carriers and OEMs millions of dollars in handling unnecessary customer service complaints/repairs.

SmartChk Diagnostics: The Advantages

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Content You May Find Useful:“The State of Mobile Device Performance & Health: Q1, 2016” Trend Report – http://www2.blancco.com/en/research-study/state-of-mobile-device-performance-and-health-trend-report-q1-2016

“The State of Mobile Device Performance & Health: Q4, 2015” Trend Report – http://www2.blancco.com/en/research-study/state-of-mobile-device-performance-and-health-trend-report-q4-2015

“Mobile Diagnostics: It’s Complicated: Mobile Frustrations & Churn” Research Report – http://www2.blancco.com/mobile-diagnostics-research?_ga=1.233987802.575384340.1427112562

Mobile Network Operators Case Study - http://www.blancco.com/sites/default/files/customer_success/files/case-study-smartchk.pdf