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1 Wireless Innova-on Pla/orm Bug Labs’ Blueprint for 2010 Thursday, February 11, 2010

Bug Labs - Gadget Development Program

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Bug Labs introduces Gadget Development Program to help companies and individuals with wireless hardware development.

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Page 1: Bug Labs - Gadget Development Program

1

Wireless  Innova-on  Pla/ormBug  Labs’  Blueprint  for  2010

Thursday, February 11, 2010

Page 2: Bug Labs - Gadget Development Program

What if...

...wireless hardware development were as easy

as application development?

Thursday, February 11, 2010

Page 3: Bug Labs - Gadget Development Program

What if......you could extend what Apple® has done for application development...

© 2010 Apple Inc.

Thursday, February 11, 2010

Page 4: Bug Labs - Gadget Development Program

Opportunity

Gadget Developer ProgramThe  fastest  path  from  prototype  to  market.

1. PrototypeDevelop your device using the pre-certified prototyping toolset and the wealth of technical resources in the Gadget Development Center

2. Produce 3. DistributeQuickly move to pilot and full production using integrated Gadget Development and Deployment Platform.

Distribute your new gadget using retail and online stores and quickly reach your audience quickly and economically.

...and apply it to hardware?

Thursday, February 11, 2010

Page 5: Bug Labs - Gadget Development Program

Revolution

You’d unlock an explosion of innovation in hardware.

Thursday, February 11, 2010

Page 6: Bug Labs - Gadget Development Program

Long Tail of Electronics

Today's Approach – a few devices for the millions - Cellphones - GPS- Digital Video- Smartphones

New Markets – millions of devices for the few - Vertical markets - Personalized, networked devices

$171B $171B +

Thursday, February 11, 2010

Page 7: Bug Labs - Gadget Development Program

HealthCare Auto CRM

ERPSCM

Home M2M Hundreds more...

TelemedicineDisease ManagementDrug complianceWellness/Prevention

EnergySecurityMedia

TelemetryEnergyMedia Utilities

Retail/CPGLogisticsIndustrial

Long Tail of Electronics

Thursday, February 11, 2010

Page 8: Bug Labs - Gadget Development Program

Confidential

Wireless Innovation Platform• Pre-certified BUG product development system• Network/Cloud services

– Bundled air-time, off-the-shelf wholesale packages– API access programs + BUG web apps– Security - authentication, encryption services

• Support Services– Billing, reporting, call center

• Distribution– Retail, online– Direct, channel

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Thursday, February 11, 2010

Page 9: Bug Labs - Gadget Development Program

How It Works

1. Prototype 2. Produce 3. Distribute

Three Phases

Thursday, February 11, 2010

Page 10: Bug Labs - Gadget Development Program

Prototype• Prototype new device with BUG hardware• Develop apps with integrated BUG SDK• Take advantage of BUG cloud services/apps• Use certified access to wireless network

– Seamless connection - turn it on and youʼre on– Incorporate exclusive network APIs into app

• Rapidly iterate, get feedback, iterate again• When itʼs right, proceed to step 2...

Thursday, February 11, 2010

Page 11: Bug Labs - Gadget Development Program

Qua

ntity

Degree of Integration

100s

1000s

100k

1M+

ODMLow-friction path to mass markets

BUG Prototype BUG Semi-customLimited Deployment BUG Full Custom 3rd Party

Full Custom

Quantity1 - 50

Quantity100+

Quantity1k - 10k

Quantity>100k

Est. Cost>$500/unit

Est. Cost*<$500/unit

Est. Cost*< $300/unit

Est. Cost*<$100/unit

Bug Labs

* Per unit cost, not including Non-Recurring Expenses (NRE)

Produce

Thursday, February 11, 2010

Page 12: Bug Labs - Gadget Development Program

Distribute

• Distribute online via BUG Gadget Store• Distribute via Bug Labs Partnersʼ

– Retail outlets– Online stores

• Take advantage of Bug Labs Partnersʼ– Support services

• Billing and reporting• Call center• Security - authentication, encryption

Thursday, February 11, 2010

Page 13: Bug Labs - Gadget Development Program

Confidential

Benefits

• Fastest, most economical way to develop and bring to market new wireless devices

• Open source IP decreases transaction costs• Certified hardware and pre-negotiated air

time plans removes administrative hurdles• Enables the Long Tail of Electronics!

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Thursday, February 11, 2010

Page 14: Bug Labs - Gadget Development Program

Confidential

Thank You!

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Thursday, February 11, 2010