The rugged mobile market followed up a strong 2010 with another strong performance in 2011. Demand was especially strong for rugged handheld and tablet form factors. For handhelds the key themes in 2011 was strong demand from the transportation/logistics sector as well as the EMEA regional market. Conversely, demand in North America slowed in the second half of the year, due, in part, to weakening retail opportunities. Our handheld market outlook for the nearterm is for vendor revenues to grow in the mid to high single digits. The rugged tablet market showed resilience in the face of continued attention directed towards consumer media pads and more specifically Apple’s iPad. Demand for tablets was concentrated around traditional inspection, delivery, healthcare and military markets. Several vendors launched or are in the process of releasing rugged Android powered tablets. While demand is beginning to percolate for these devices, we are seeing pent up opportunities for Microsoft’s pending Windows 8 platform. The rugged notebook market has performed less predictably over the course of 2011 as government budgets – both national/federal and state/local – contract. As a result shipments to the commercial sector as a percent of overall shipments increased substantially during the second half of 2011. During this QuickCast, VDC's David Krebs give an overview of the rugged mobile market, focusing on some of the key trends we believe will be driving change moving forward.

1. Mobile & Wireless Practice
David Krebs – Vice President
Eric Klein – Senior Analyst
Balca Korkut – Analyst
Britt Libby – Research Associate
QuickCast
Rugged Mobile Outlook
March 2012
© 2012 VDC Research QuickCast
Mobile & Wireless
vdcresearch.com

2. Recording Available
A full audio recording is available for download at:
http://vdcresearch.com/market_research/mobile_wireless/freeresearch.aspx
© 2012 VDC Research QuickCast
Mobile & Wireless
vdcresearch.com

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© 2012 VDC Research QuickCast
Mobile & Wireless
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Mobile & Wireless
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© 2012 VDC Research QuickCast
Mobile & Wireless
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6. Today’s Speaker
David Krebs
Vice President, Mobile & Wireless
David has more than ten years experience covering the markets for enterprise and
government mobility solutions, wireless data communication technologies and automatic
data-capture research and consulting. David focuses on identifying the key drivers and
enablers in the adoption of mobile and wireless solutions among mobile workers in the
extended enterprise. David’s consulting and strategic advisory experience is far reaching
and includes technology and market opportunity assessments, technology penetration
and adoption enablers, partner profiling and development, new product development and
M&A due diligence support. David has extensive primary market research management
and execution experience to support market sizing and forecasting, total cost of
ownership (TCO), comparative product performance evaluation, competitive
benchmarking and end user requirements analysis. David is a graduate of Boston
University (BSBA).
For complimentary insights and marketing data:
http://blog.vdcresearch.com/mobile_and_wireless/
© 2012 VDC Research QuickCast
Mobile & Wireless
vdcresearch.com

7. Today’s Agenda
Rugged Mobile Computing – 2011
Performance & 2012 Outlook
Regional Performance & Industry
Opportunities
Consumer Technology Impact
© 2012 VDC Research QuickCast
Mobile & Wireless
vdcresearch.com vdcresearch.com

8. Global Rugged Mobile Market
Strong 2011 performance for rugged handheld solutions with slightly upward trending rugged notebooks
and tablets
Rugged Handheld Shipments Strong revenue growth in rugged handheld devices
1000 $800
908.3
851.4
799.5
850.7 in 2011 – higher than originally projected by VDC
727.2 
$707.4
800 Global: 14.5%
Unit Shipments (/000)
681.8 719.0
$678.6
$668.5
$600
$627.5

Hardware Shipments
604.8 Americas: 8.3%
$579.1
$570.5
(USD Millions)
600
$519.3
 EMEA: 23.8%
$487.3
$400
400  APAC: 10.3%
$200
200 Rugged notebook market showed pockets of
improvement in 2011 – moderate to robust outlook
0 $0 for 2012
Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11
 Global: 4.0%
Rugged Notebook & Tablet Shipments  Americas: -2.4%
210 198.8
188.1
$500  EMEA: 13.8%
169.3
180 149.6 139.5 153.7 159.1  APAC: 37.8%
$465.3
155.5
$427.1
Unit Shipments (‘000)
$375 Hardware Shipments
$427.2
150
(USD Millions) Strong rugged tablet market continued in 2011 –
$407.5
$400.0
$397.8
$351.4
$380.1
120 some media pad uplift. Rugged Android a theme
$250
90 for 2012
60  Global: 11.4%
$125
30  Americas: 5.9%
0 $0  EMEA: 12.6%
Q1 '10Q2 '10Q3 '10Q4 '10Q1 '11Q2 '11Q3 '11Q4 '11  APAC: 38.2%
© 2012 VDC Research QuickCast
Mobile & Wireless
vdcresearch.com

9. Impact of Tablets & Smartphones on Rugged Mobile Market
Customer facing applications are most vulnerable
Target Segment Key Value Propositions Size Characteristics Rugged Vulnerability
 Customer service
 Inventory management  2011 Rugged mobile: $300M  Retail investments around customer
Retail Shop Floor  Mobile POS/ Queue busting  Total units: 350K engagement
 Product evaluation  Annual growth: 9.8%  35% of near term opportunity at risk
 B2B and B2C platform integration
 Customer service
 2011 Rugged mobile: $50M  Consumer tablet (iPad) preferred device
Hospitality: Customer  Ticketing
 Total units: 65K for many solutions
Engagement  Check in/out
 Annual growth: 12.0%  100% of near term opportunity at risk
 Product and service presentation
 Majority of solutions asset facing and not
customer facing
 Customer service
 2011 Rugged mobile: $900M  Inclement environments common
 Maintenance/ repair
Field Service  Total units: 650K  Solid state memory and use of protective
 Dispatching
 Annual growth: 10.0% sheaths (Otterbox) driving consideration
 Customer and asset management
of non-rugged devices
 35% of near term opportunity at risk
 Traditional DSD processes are order taking
and deliver which continue to be primarily
 Order taking and sales  2011 Rugged mobile: $240M supported by rugged (handheld) solutions
Direct Store Delivery  Delivery  Total units: 250K  Emerging merchandising applications
 Merchandising  Annual growth: 9% (planograms; promotion management, etc.)
supported primarily by non-rugged solutions
 20% of near term opportunity at risk
© 2012 VDC Research QuickCast
Mobile & Wireless
vdcresearch.com

10. Tablet Investment Status & Drivers
Broad interest in tablets among enterprise and government organizations with 55% currently using or
evaluating / planning to deploy tablets
Tablet Investment Situation
(N=1374)
CURRENTLY USING TABLETS
CURRENTLY USING TABLETS AND PLANNING TO EVALUATE
AND/OR DEPLOY AN UPGRADE
CURRENTLY EVALUATING TABLETS
PLANNING TO EVALUATE AND/OR DEPLOY A NEW TABLET
SOLUTION
EVALUATED TABLETS BUT DID NOT DEPLOY
NO CURRENT PLANS TO EVALUATE OR DEPLOY A TABLET
SOLUTIONS IN NEXT 12 MONTHS
DON'T KNOW
0% 5% 10% 15% 20% 25% 30% 35%
Few organizations that evaluate tablets decide not to deploy. Balanced mix between current users and evaluators
with almost 30% of organizations with no current tablet initiatives.
© 2012 VDC Research QuickCast
Mobile & Wireless
vdcresearch.com

11. Q4 2011 Global Rugged Mobile Market
Strong performance in EMEA during Q4 2011 over Q4 2010 across all form factors
Large Form Factor Shipments Rugged Handheld Shipments
USD Millions USD Millions
$54.8 $125.8
Asia- $46.5 Asia-Pacific $130.3
Pacific
$125.4 $293.3
EMEA $111.9 EMEA
$263.1
$299.2 $288.3
Americas $304.1 Americas $285.1
Q4 '11
$0 $100 $200 $300 $400 Q4 '10 $0 $100 $200 $300
Even facing regional macro-economic pressures, demand for rugged solutions in EMEA remained very strong in Q4 2011.
Growth was strong across most sectors with transportation / logistics and distribution, utilities and manufacturing leading.
In North America, we are witnessing a modest recovery in the government sector (large form factor) while handheld
performance was closely tied to the transportation / logistics sector as retail demand softened.
© 2012 VDC Research QuickCast
Mobile & Wireless
vdcresearch.com

12. 2012 Research Agenda
Enterprise Mobility Hardware Solutions Market
 Track 1: Fast Forward: Insights for Leaders
 Track 2: Enterprise & Government Mobility Hardware
 Track 3: Enterprise Mobility Professional Services
 Track 4: Enterprise Mobility Software
 Track 5: Enterprise Mobility Industry & Application Markets
 Track 6: Enterprise Mobility Vertical Markets
 Track 7: Enterprise Mobility Total Cost of Ownership (TCO) & Return on Investment Models
© 2012 VDC Research QuickCast
Mobile & Wireless
vdcresearch.com

13. Thank You for Attending this VDC Webcast
For more information please contact:
Gerrell Smith – Account Director
gsmith@vdcresearch.com | 508.653.9000 x113
David Krebs – Vice President
davidk@vdcresearch.com
Eric Klein – Senior Analyst
eklein@vdcresearch.com
Balca Korkut – Analyst
bkorkut@vdcresearch.com
For complimentary insights and marketing data:
http://blog.vdcresearch.com/mobile_and_wireless/
© 2012 VDC Research QuickCast
Mobile & Wireless
vdcresearch.com