OFFER VALID ONLY FOR THE FOLLOWING PRODUCTS:

DecemberConsumer Offers:

How to Participate:

Offer Valid in the Following Countries:

Offer Duration:

January 2017

Receive three free months of Apple Music. An additional retail value of a $29.97 USD (or local equivalent)/ ~$30 USD (or local equivalent) iTunes store credit.

Purchase an eligible wireless Beats product and register your Beats at beatsbydre.com/register to receive an Apple Music promotional card for three free months of Apple Music.

Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Spain, Sweden, Switzerland, UAE, UK, US(Coming 2017) China & Singapore

Ongoing promotion for the life of the applicable products, unless otherwise communicated.

OFFER DETAILS

Beats wireless products will have a promotional card added in the box, beginning December 2016. Consumers register their new Beats and receive Apple Music FREE FOR THREE MONTHS.

BEATSXALL COLORS

POWERBEATS3 WIRELESSALL COLORS

SOLO3 WIRELESSALL COLORS

BEATS STUDIO WIRELESSALL COLORS

BEATS PILL+ALL COLORS

COMMUNICATION TIMELINEPresent upcoming promotion to accounts in advance of public announcement. A keynote file will be sent from sales leaders for account executives to share with accounts.

Country registration sites went live starting December 9th, with redemption paths so consumers can immediately begin taking advantage of the promotion. Cards will begin showing up in box as early as December week 3, as current inventory sold through availability will increase.

Channel marketing assets will be made available for partners to begin utilizing. Above the line marketing plan is in discussion for Q2 introduction.

SAMPLE IN BOX PROMOTIONAL CARD

Translated terms and condit ions for each el igible countr y wi l l be located on the back of the card

FRONT BACK

This material is for the use of Apple Inc. and its employees and contractors. All content is for training and sales purposes only. Not for display in stores. Any unauthorized reproduction or distribution of this material is strictly prohibited. Not for consumer distribution.

OFFER FAQs

Beats wireless products will have a promotional card added in the box, beginning December 2016. Consumers register their new Beats and receive Apple Music FREE FOR THREE MONTHS.

What about consumers who purchase current eligible inventory without a card:All consumers who meet the eligibility requirements and can participate in the promotion even if they did not receive a card in the box by contacting their local Apple Care. A support page will also be made available on Beats by Dre later this month to assist consumer with this process.

What happens to consumers who have already signed up to Apple Music as part of a carrier offer:At this time there is no way for a consumer to utilize the promotion toward an Apple Music subscription. However they will still be able to redeem the card for its equivalent value in the iTunes Store.Can consumer redeem multiple cards:Yes

Is this in addition to the three months everyone gets:Yes, the offer stacks or extends the three month trial offer if you are a new consumer.

What if a consumer receives product with a card in a country where the offer is not currently applicable?All eligible products listed above will come with promotional card included in box, no matter the country. Consumers in unsupported countries (any country not listed above) can retain the cards to redeem at a later date when/if the promotion launches in their country. We expect this scenario to occur in less then 13% of consumers, with this figure reducing to less than 5% after the introduction of China market in 2017.

Will the product SKU or MPN numbers be effected by this in box addition?No this is a running change to the product no, changes will be made to the SKU or MPN. Consumers should continue to order the product as they are today, they can expect to see cards show up in NPI product soonest.

Will there be any call-outs of the cards on the outside packaging? Any distinctions?No, not at this time.

Will the cards, registration site and marketing materials (later half of Q2) be localized?The cards have any required legal copy translated where ever legally required, the local registration sites and later marketing materials will be localized.

When should we start to officially communicate this promotion? Will this be communicated to resellers and consumers?You can begin communicating this promotion internally and to your resellers immediately. Consumer facing communications materials will be made available in Q2 FY17.

How long is the promotion running?This promotion will run until terminated by Apple, currently there are no plans to end this on-going program.

What if a consumer brought a product prior to December 1st, and tries to call Apple Care to redeem the free three months?Apple Care has been trained to handle a diverse set of consumer scenarios and will work to validate eligibility

Any color restrictions on the listed productsNo not at this time, as long as product is purchased on or after December, 1st, 2016

How will returned products be handled?Accounts should accept returns as normal from consumers. At this time we are not asking to validate that the promotion was not utilized.

This material is for the use of Apple Inc. and its employees and contractors. All content is for training and sales purposes only. Not for display in stores. Any unauthorized reproduction or distribution of this material is strictly prohibited. Not for consumer distribution.