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Subject: Back to School next year. =)
From: "Eddy Cue”
Received(Date): Fri, 15 Feb 2013 01:51:57 +0000
To: “Tim Cook” JN Phi Schiller”
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Date: Fri, 15 Feb 2013 01:51:57 +0000

T understand that we have tentatively decided for a discount of S100/S50/550 for
Mac/iPad/iPhone. Did we think that customers would buy significantly more if we gave them a
straight discount instead of an Tunes card? If this isn't a huge difference, think we are making a
mistake. We are discounting our product instead of adding value to them. Getting customers
using our stores (Tunes, App and iBookstore) is one of the best things we can do to get people
hooked to the ecosystem. The more people use our stores the more likely they are to buy
additional Apple products and upgrade to the latest versions. Who's going to buy a Samsung.
phone if they have apps, movies, etc already purchased? They now need to spend hundreds more:
0 get to where they are today.
On a related note, our apple stores (online and retail) are the only distributors around the world
that decreased year over year in iTunes card sales. We are starting to make progress again with
retail but it is always an uphill battle. Our teams just don't get the ecosystem. We (Val and team)
just heard from Jennifer that iTunes cards are not a priority for her. This is ridiculous. Who
Teaves Apple products once they've bought apps, music, movies, etc!
‘We don't allow 3rd party retailers to market our products with i Tunes cards as a discount. This is
fully funded by the retailer but need our approval for newspaper ads. In the meantime, Samsung
is discounting and giving crap away everywhere. An iTunes card has significant value to us and
should not be viewed as a straight discount.
‘Samsung is now pushing Google Play cards with placement right below the phones -
‘We haven't been putting our cards with our product displays (at 3rd parties) since the iPod. They
have to be at a different location. We should have gift cards on the tables like we do in Apple
retail. We should also consider having them pegged on all end cap of hardware.
Enough ranting... here is good news... the cards today in Walmart and Targert.
Also last month's sales -

+ January worldwide sales were S308M, +57% YO, well above forecast.

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