“To make their strategy work, Panasonic has spent a significant amount of time working directly with customers to assess their needs, and then translating.

“To make their strategy work, Panasonic has spent a significant amount of time working directly with customers to assess their needs, and then translating those needs into a set of products that are optimally configured to appeal to those customers. The approach works because Panasonic has remained focused ...”

Technology Business Research Q2 1999

INNOVATION - RELIABILITY - CONFIDENCE

Semiconductorby MEC

Li-ion batteryby MBI

LCR and PCBby MACO

LCDby LCDD

CD/DVDby MEC

PC cardby PCPD

Panasonic is one of the only the manufacturers today thatdirectly controls the process of design, manufacture and qualityassurance of its notebook PCs.

INNOVATION

INNOVATION - RELIABILITY - CONFIDENCERELIABILITY

Key Findings° Damage rates have risen 22.5% since 1999.

° Only 28% of damage cost comes from parts and labor.

° Each damage incident costs an organization on average $2,900.

° A “No Fault Warranty” does not cover the total costs

° 80% of damage involves screens, cases, keyboards and HDD’s.

° 75% of damage is from drops, falls and liquid spills.

Source Data: Technology Business Research, 2001

Surveyed 400+ IT Managers


Since 1999, the cost per incident has risen 107% TBR estimates cost per incident will escalate another 30%-50% in 3 years.

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

1999 2001


$1,4

00107%

Average Damage Incident Cost

$2,9

00


Only 28% of the total repair cost is direct parts & labor. A “no

fault” warranty is NOT a “no cost” warranty.

° $2,900 – total average damage incident cost

° $ 814 – direct parts and labor costs

° $ 462 – time user spent trying to fix unit or interfacing with IT

° $ 130 – cost to the company for depreciation, financing and admin

° $ 204 – time spent transferring data damaged system to loaner

° $ 791 – time spent by user to recover or redo lost work

° $ 487 – time IT spent interfacing with user and to effect repair

° $ 30 – average daily cost of replacement or substitute system

° The total cost minus direct parts and labor- $2,104



0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00%

Track/Mouse Pad, Point/Ball

CD Drive or DVD Drive

Modem

Latches

Hinges

System Board

Hard Disk Drive

Keyboard

Case, Outer Casing

Display Screen

Percent of Respondents

Four notebook components account for over 80% of all reported damage.


COMPONENTS DAMAGED


75% of all reported damage incidents involve dropping, spilling liquid and falling objects.

0% 5% 10% 15% 20% 25% 30% 35% 40%

Object left on keyboard when closed

Improper insertion of PC card

Mishandled in travel

Normal wear/overwear

Abused/misused

Extreme heat or cold exposure

Packed too tightly in briefcase/carrying case

Fell off desk/surface while in use

Object dropped on unit/crushed

Liquid spill

Dropped while carrying


CAUSES FOR DAMAGE


Solving the Problem

Vendor Selection Select more durable notebooks to cut this “hidden” cost by 50% or more.

Cap Costs Now is the time to make the switch – damage incidence costs have more than doubled in just 3 years– and as your notebook fleet continues to expand, costs will continue to rise. Cap costs now!

Choose Wisely Panasonic is focused on building more durable notebooks. With over 25 years in the business they set the industry durability standards that others try to emulate. The Toughbook, outlasts virtually all others.

RELIABILITY



Panasonic Toughbooks have passed stringent militaryenvironmental tests with flying colors.

TEST PASS FAILDrop

Vibration

Water Resistance

Dust Resistance

Altitude

High Temperature

Low Temperature

Temperature Shock

Humidity

RELIABILITY


35

20

6.094.741.19

4.88

3.314.422.423.53

6.455.05

0

5

10

15

20

25

30

35

TB37 TB45 TB47 TB48 TB71 TB72 TB27 TB28 TB34 Average GG low GG high

Months in 21 37 26 8 35 8 33 5 20 Production

4.67

Gartner Group


° Panasonic - a Matsushita Company· World’s 23th largest Company

° Worldwide Sales of $75B· $9.1B U.S. Sales

° 265,000 Worldwide Employees· 19,500 U.S. Based

° 14,000 Products and 161 Companies· 150 business locations and 23

manufacturing sites in the U.S.

° $3.8B R&D Expenditure

CONFIDENCE


° Building Mobile Solutions for 19 Years· Mobile computers since 1982

° ISO Certified Notebook Factory· Produced over 1.75M notebooks since 1987

· 500,000 rugged units (130,000 FY2000)

° Mobile Computer Component OEM· One of the top 10 computer

manufacturers – $3.2B sales

° 260 Engineers focused on Mobile Technologies

· Wireless/Integrated testers

· Wearable/Ruggedness

° High Production Capacity· 2,000 units per day on 10 lines

CONFIDENCE


° Unsurpassed Service and Support· 24 x 7 hotline support

· 3 year limited warranty

· Overnight shipping both ways- paid by Panasonic

· Priority Exchange - User replaceable parts

· 2-day average turnaround time for repairs

· Regional field service support

· U.S (HQ) Based engineering

· International Warranty

CONFIDENCE

OUR CUSTOMERS

OUR CUSTOMERS

WANT PROOF THAT YOU NEED A TOUGHBOOK?

º Make a company-wide risk assessment.

º Profile your mobile users.

º Talk to your Panasonic representative.

“To make their strategy work, Panasonic has spent a significant amount of time working directly with customers to assess their needs, and then translating.

Documents

innovation reliability

damage cost

damage slide

innovation slide

reliability source data

damage incident costs

cost warranty

hidden cost