BNP Paribas - SMARTPHONE SPOTLIGHT

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					             U.S. EQUITIES RESEARCH

             SMARTPHONE SPOTLIGHT
             Q1’2012 EARNINGS TAKEAWAYS


All 35 US companies in our Smartphone value chain have reported CQ1’2012 earnings. Although longer-term
dynamics for the smartphone industry presented in our initial report (Smartphone Spotlight: Leveraging the
Value Chain) remain intact, there were some new trends that emerged from the recent earnings season. In this
note we update our view on the 4 US companies we discussed in our prior note.



US Companies highlighted:

Qualcomm Inc (QCOM, $58.14, Not Rated): CQ2’2012 MSM shipments and sales guidance were disappointing
due to 28nm supply constraints. Weakening momentum at HTC and continued supply constraints for 28nm
chips, potentially through the December quarter, in our view will continue to be headwinds.



Broadcom Corp (BRCM, $32.29, Not Rated): Although no new design wins were announced, company suggested
3G momentum is increasing in 2012, which may not be reflected in the current stock price. On balance we are
optimistic based on new product cycles in 3G baseband, 5G Wifi and NFC, despite BRCM’s lagging baseband
technology roadmap and a hyper-competitive China smartphone market.



RF Micro Devices (RFMD, $3.59, Not Rated): Consistent with earlier read-throughs, strengthening demand from
Chinese manufacturers removed key headwind and led to guidance of ~8% sequential quarterly sales growth in
CQ2’2012. Increasing complexity of LTE and greater exposure to Samsung are incremental positives that could
offset continued exposure to Nokia and 2G.



Skyworks Solutions Inc (SWKS, $26.11, Not Rated): Diversification across products and customers allays
concerns regarding a “product hole” that we highlighted in our earlier report, leaving the company well
positioned to benefit from longer-term industry growth trends. On balance we no longer have a conviction view
unless additional value chain read-throughs emerge.




All prices are as of close of business in May 23, 2012. The equity ratings for the Asian companies contained in
this report were issued by BNP Paribas Securities (Asia) Ltd., a non-US affiliate of BNP Paribas Securities Corp.
Such ratings reflect the global ratings adopted by the BNP Paribas group as described under “Stock Ratings” in
the Disclosures section beginning on page 34. The analysts responsible for such ratings are not registered /
qualified pursuant to NYSE and/or FINRA regulations.



                 Nitin Kumar
                 nitin.x.kumar@us.bnpparibas.com
                 +1 212 471 7963

BNP Paribas research is available on Thomson One , Bloomberg, The Markets.com and Factset.
For analyst certification and other important disclosures, refer to the Disclosures section beginning on page 34.


 PREPARED BY BNP PARIBAS SECURITIES CORP. (US)
 BNP Paribas does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that BNP Paribas may have
 a conflict of interest that could affect the objectivity of its research. Investors should consider this report as only a single factor in making an investment decision.   24 MAY 2012
Smartphone Spotlight                                                                                               Nitin Kumar




CONTENTS
Value Chain Indicator Framework: A Look Back __________________________________________________ 3
    Overall framework ______________________________________________________________________________________________ 3
    Qualcomm: Headwinds may persist ________________________________________________________________________________ 4
    Broadcom Inc: Early stages of new product cycles ____________________________________________________________________ 7
    RF Micro Devices: Catalysts being discounted_________________________________________________________________________ 9
    Skyworks Solutions: No conviction read-throughs ___________________________________________________________________ 11


Other Key Takeaways from Earnings ___________________________________________________________ 13
    Overall competitive landscape remains the same ____________________________________________________________________ 13
    28nm constraints: A bottleneck and an opportunity __________________________________________________________________ 14


Appendices _________________________________________________________________________________ 17
    Appendix 1: Value Chain Indicator Framework ______________________________________________________________________ 17
    Appendix 2: Smartphone Value Chain ______________________________________________________________________________ 19
    Appendix 3: Market Returns by Segment ___________________________________________________________________________ 20
    Appendix 4: Segment Comparisons ________________________________________________________________________________ 22
    Appendix 5: Trends by Key Smartphone Vendor Value Chains __________________________________________________________ 23
    Appendix 6: Price Performance and Analyst Estimates by Company _____________________________________________________ 25
    Appendix 7: Consensus Valuation Multiples by Company ______________________________________________________________ 27
    Appendix 8: Consensus Sales Trends by Company ____________________________________________________________________ 29
    Appendix 9: Gross Margin and Days of Inventory Trends by Company ____________________________________________________ 31
    Appendix 10: List of Asian Companies mentioned (BNPP Asia Tech coverage) ______________________________________________ 33




2                                                        BNP PARIBAS                                               24 MAY 2012
Smartphone Spotlight                                                                                               Nitin Kumar



Value Chain Indicator Framework: A Look Back
Overall framework

In our introductory Smartphone Spotlight report (Smartphone Spotlight: Leveraging the Value Chain), we
introduced our Value Chain Indicator framework -- a quantitative framework for identifying potential
market outliers and anomalies within the smartphone value chain. This system acts as a screening
mechanism that, when combined with read-through’s from the BNPP Asia Tech1 team and our
understanding of the industry drivers, can identify investment themes and ideas. An overview of the
framework is included in Appendix 1.

In Exhibit 1 below, we show the model results based on prices and consensus fundamental estimates as of
April 12, 2012 – the date we had used for our prior publication.

EXHIBIT 1: Value Chain Indicator Framework – April 12, 2012

                                                         3


                                                                                                   QCOM
                                                         2
                                                                                                  CRUS
                                                                                AVGO
                                                         1                    MOLX
                                                                                     MXIM
                                                                            SWKS                  BRCM
                                  Actual Price Z-score




                                                                            FLEX
                                                         0



                                                         -1


                                                                                RFMD
                                                         -2
                                                                                CY


                                                         -3
                                                              -3   -2      -1          0    1            2   3
                                                                        Estimated Price Z-score


Sources: BNP Paribas, Bloomberg




Overall the 35 US companies in the smartphone value chain have declined by 13.7% since our last note,
underperforming both the Philadelphia Semiconductor Index (SOX, -12.2%) and the S&P 500 Index (SPX, -
5.0%). The sole exception to the general declining trend of the smartphone value chain was Cirrus Logic
(CRUS, 27.74, Not Rated), which has gained ~16% since April 12.

Key headwinds such as supply constraints at 28nm, a longer-than-expected product transition at Apple
(AAPL, 570.56, Not Rated) and struggles at key vendors contributed to underperformance by smartphone
value chain companies. .

Exhibit 1 also shows the 8 outliers identified by our Value Chain Indicator framework on April 12, of which
we had highlighted 4 in our April report. In this note we discuss key takeaways from the recent earnings
season for these 4 companies.




1
 Our affiliate, BNP Paribas Securities (Asia) Ltd., provides extensive coverage of the TMT sector through a team
of 22 publishing analysts covering ~100 companies. In this report we refer to this team as BNPP Asia Tech.


3                                                                                          BNP PARIBAS             24 MAY 2012
Smartphone Spotlight                                                                                          Nitin Kumar



Qualcomm: Headwinds may persist
Summary of our pre-earnings view

We highlighted longer term challenges for Qualcomm Inc (QCOM, $58.14, Not Rated) in both high-end and
low-end devices in 2H 2012. For high-end devices, we focused on the short window of opportunity for key
customers like HTC (2498 TT, TWD 422.50, REDUCE) and LG (066570 KS, KRW 65,200, REDUCE) before the
launch of Samsung (005930 KS, KRW 1,221,000, BUY) and AAPL flagship devices. For low-end devices we
highlighted increased competition from Mediatek (2454 TT, TWD 253, BUY). We suggested that investors
monitor FQ3’2012 earnings guidance on April 18 for any early signs of momentum loss.

CQ1’2012 earnings summary

Despite delivering strong quarterly results for FQ2’2012 (March quarter), QCOM disappointed investors
with its June quarter guidance. FQ3’2012 sales guidance was $4.45bn to $4.85bn, ~3% below consensus
estimates prior to the announcement. The company guided to MSM chip shipments of 144-152mm vs.
FQ2’12 shipments of 152mm, blaming capacity constraints at TSMC (2330 TT, TWD 79.1, BUY) for the
reduced guidance. Despite some positives in the earnings release – particularly the higher guidance for
3G/4G device shipments and ASPs which drives revenues for the company’s QTL segment – the stock has
declined ~13% since the earnings release on April 18.

Thoughts post-earnings: Headwinds may persist

Despite its recent weakness, our view is that QCOM may continue to see headwinds for the rest of CY2012.
Several observations support our view:

1. Weakening momentum at HTC

In addition to the challenges described in our earlier note, we expect weakening momentum at HTC to be
a constraint for QCOM in CQ2’2012. As Laura CHEN highlights in her recent note2, on April 24 HTC guided
its 2Q 2012 sales to be TWD 105bn (up 55% qoq, down 16% yoy). April monthly sales (reported on May 9)
were TWD 31bn, ~20% lower yoy and weaker than the guided pace.

At their recent analyst day, HTC also said that they expect more upside in Asia, particularly China and
Japan, while admitting that growth in the US market will be more challenging. The company suggested
that the share of US sales would decline from ~50% to ~30%. Subsequently, there have been delays in the
US availability of the HTC One X and HTC EVO 4G LTE due to US customs review of shipments following an
ITC exclusion order in its patent dispute with Apple. The US is one of the primary markets for LTE devices,
and while HTC selected the Nvidia Tegra for its flagship One Series in other regions, it relies on QCOM’s
Snapdragon S4 for the US bound LTE version (One XL).

HTC represents approximately 13% of QCOM’s total revenue, and weakening momentum (especially in the
US) at the device maker may continue to pose challenges for QCOM through 2012.

2. Samsung diversifying LTE basebands

Samsung is another key customer for QCOM, representing approximately 13% of revenues. As we
highlighted in our April note, Samsung adopted its own Exynos AP for the new SIII replacing QCOM’s
combined chip for the LTE version of SII. Moreover, Peter YU from BNPP Asia Tech has suggests3 that
given the diversified design of Galaxy smartphones, Samsung may not rely entirely on Qualcomm’s LTE




2
    Laura CHEN, HTC Corp – Challenging outlook continues, April 25, 2012.
3
    Peter YU, SAMSUNG ELECTRONICS - Galaxial momentum, May 7, 2012.


4                                                               BNP PARIBAS                                   24 MAY 2012
Smartphone Spotlight                                                                                        Nitin Kumar



basebands for all SIII devices. For some CDMA LTE versions targeted for the US (Verizon) and Korea
(LGU+), Samsung may use its own LTE baseband with a different 2G/3G baseband (e.g., Viacom).

3. Continuing 28nm supply constraints

At its earnings conference on April 18, QCOM indicated that the 28nm supply constraint will affect the
MSM8960 (2/3/4G baseband + AP combo) and “other 28nm products”. As Peter YU from BNPP Asia Tech
highlights4, limited supply of the MSM8260, which is the 3G version of Snapdragon S4, will impact tier-2
smartphone makers (ZTE, Huawei, LG etc). These vendors may be tempted to consider alternatives from
competitors like Mediatek, Nvidia5 and BRCM, albeit some are at higher nodes. This may especially be the
case if QCOM is forced to allocate 28nm supply to Apple and Samsung, who are expected to use the
MDM9615 LTE baseband (another 28nm product) for their flagship devices.

4. Competition from MediaTek is rising

While QCOM has a better product roadmap and leading 3G/4G technology, the BNPP Asia Tech team sees
opportunity for Mediatek in the 1GHz mainstream smartphone market6. Shipments of Mediatek’s MT6575
(single core, Cortex A9, 1GHz) chip start in CQ2’2012. The MT6577 (dual core, Cortex A9, 1.2 GHz) chip is
expected to be launched in CQ3’2012. Both chips are made at the 40nm node, and are reportedly not
impacted by 28nm capacity constraints. We reiterate our view that increasing adoption of Mediatek chips
in mainstream smartphones could slow-down QCOM’s momentum in this market.




Risks to our view

Balancing our view of longer term headwinds, several positive scenarios could unfold, which we feel could
pose some upside risk to our view.

1. Retaining AP socket on US 4G Samsung Galaxy SIII

Although, Samsung elected to use the Exynos 4412 AP for its Galaxy SIII7, early industry reports suggest
that they might retain the QCOM baseband + AP solution (MSM8960) for a US 4G version. Many (including
us) expected Samsung to use the Exynos series AP in the US 4G version as well. Although, detailed specs
for an US version of the Galaxy SIII are not available as of this publication, winning this socket would
provide a boost to QCOM shipments.

2. Continued 3G/4G momentum

QCOM is also strongly positioned to take advantage of the anticipated launch of several high end 4G/LTE
devices this year with its integrated baseband. QCOM has reiterated that it expects LTE devices to
account for approximately a third of chip shipments by the end of 2012. Given higher margins associated
with LTE devices, strong adoption of LTE devices could be a tailwind for the company going into 2013.

3. Higher 3G/4G shipments and ASPs

QCOM benefits from the overall growth in global 3G/4G device shipments through its licensing business
(QTL). The company raised CY 2012 guidance for global shipments to 915 million units (from 910 million




4
  Peter YU, SAMSUNG ELECTRONICS - Galaxial momentum, May 7, 2012.
5
  NVDA, $12.44, Not Rated
6
  Laura CHEN, MEDIATEK - Lift smartphone shipment target, April 28, 2012.
7
  Peter YU, SAMSUNG ELECTRONICS - Galaxial momentum, May 7, 2012.


5                                                            BNP PARIBAS                                    24 MAY 2012
Smartphone Spotlight                                                                                                                                                                                                                                                                              Nitin Kumar



units), while estimating a slight increase in ASPs ($212 midpoint vs. $210 midpoint). Further upside in
these estimates could result in revenue upside.

4. Multiples have declined due to price weakness

As shown in Exhibit 2 below, based on recent price weakness, QCOM valuation multiples (1yr fwd P/E ratio
and EV/EBITDA) have fallen to the lower end of their range since January 2010. On April 12, the multiples
were above their historical average.

EXHIBIT 2: QCOM Valuation Multiples
                      1y Fwd P/E Ratio: 2010 to current                                                                                               1y Fwd EV to EBITDA Ratio: 2010 to current
 25.0 x


                                                                                                                                                  14.0 x

 20.0 x



                                                                                                                                                  10.0 x
 15.0 x




 10.0 x                                                                                                                                            6.0 x
                                                       Nov-10




                                                                                                              Nov-11




                                                                                                                                                                                                        Nov-10




                                                                                                                                                                                                                                                              Nov-11
          Jan-10




                                                                Jan-11




                                                                                                                       Jan-12




                                                                                                                                                           Jan-10




                                                                                                                                                                                                                 Jan-11




                                                                                                                                                                                                                                                                       Jan-12
                   Mar-10




                                              Sep-10




                                                                         Mar-11




                                                                                                     Sep-11




                                                                                                                                Mar-12




                                                                                                                                                                    Mar-10




                                                                                                                                                                                               Sep-10




                                                                                                                                                                                                                          Mar-11




                                                                                                                                                                                                                                                     Sep-11




                                                                                                                                                                                                                                                                                Mar-12
                            May-10
                                     Jul-10




                                                                                   May-11
                                                                                            Jul-11




                                                                                                                                         May-12




                                                                                                                                                                             May-10
                                                                                                                                                                                      Jul-10




                                                                                                                                                                                                                                   May-11
                                                                                                                                                                                                                                            Jul-11




                                                                                                                                                                                                                                                                                         May-12
Sources: Bloomberg, Bloomberg consensus estimates




In Exhibit 3 we split the change in these valuation multiples since April 12 between the impact of price
moves and the impact of changes in consensus estimates. Clearly, changes in price have driven lower
multiples, which could suggest an under-priced stock.

EXHIBIT 3: Change in Valuation Multiples
                                              Change in PE Ratio                                                                                                                           Change in EV / EBITDA
 20.0                                                                                                                                             15.0

 15.0
                                                                                                                                                  10.0
 10.0

                                                                                                                                                   5.0
    5.0

    0.0                                                                                                                                            0.0
                   12-Apr                     Change in                           Change in                      23-May                                             12-Apr                        Change in                        Change in                           23-May
                                                price                             estimates                                                                                                         price                          estimates



Sources: Bloomberg, Bloomberg consensus estimates




6                                                                                                                                                  BNP PARIBAS                                                                                                                                    24 MAY 2012
Smartphone Spotlight                                                                                                            Nitin Kumar



Broadcom Inc: Early stages of new product cycles
Summary of our pre-earnings view

Despite a lagging technology roadmap for baseband/AP chips and growing competition in connectivity
chips (where BRCM is the market leader) we were cautiously optimistic on BRCM given recent momentum
with low-cost 3G smartphones. We expected that indications of design wins in entry level 3G
smartphones could provide further positive momentum not reflected in the stock price.

CQ1’2012 earnings summary

BRCM reported FQ1’2012 sales (March quarter) of $1.827 million and EPS of $0.65/sh, compared to
estimates of $1,777.75 million and $0.55/sh, respectively. Excluding the NetLogic acquisition, FQ1 revenue
would have been $1.79 billion, near the high end of the company guidance ($1.70 - 1.80 billion). Guidance
and actual results by segment are summarized in Exhibit 4 below.

EXHIBIT 4: BRCM: Results by Segment FQ1’2012
                                  ----- Revenue ($mm) -----

 Segment                       Q4 2011      Q1 2012   % Change (1)   Company Guidance            Company Commentary
 Broadband Communications
                                 510            494       -3.1       Down from Q4 2011
 ("Home")
 Mobile & Wireless                                                                               Upside driven by 3G baseband
                                 875            875       0.0        Down from Q4 2011
 ("Hand")                                                                                        and Wi-Fi combos
 Infrastructure & Networking                                                                     Includes $33mm from NetLogic
                                 383            406       6.0        Roughly Flat from Q4 2011
 ("Infrastructure")                                                                              *-3% w/o NetLogic
 Other                           53             52        -1.9

Sources: Company, (1) BNP Paribas Calculation

In terms of FQ2’2012, BRCM expects firm level revenues to be between $1.90 and $2.00 billion, compared
to Bloomberg consensus estimate of $1.93 billion prior to earnings. Within the segments, the company
guided to sequential growth in the Home and Infrastructure segments and flat revenues for the Hand
segment. BRCM has declined ~12% since announcing earnings on May 1.

Thoughts post-earnings: Early stages of new product cycles

On balance we are optimistic based on new product cycles in 3G baseband, 5G Wifi and NFC, despite
BRCM’s lagging baseband technology roadmap and a hyper-competitive China smartphone market.
Although no new design wins were announced, the company suggested 3G momentum is increasing in
2012, which may not be reflected in the current stock price.

1. Greater optimism on 3G momentum

Although BRCM did not announce any new design wins at the earnings call, the company has affirmed
that momentum in 3G basebands and WiFi combos is improving. 3G volume and revenues exceeded 2G in
Q1, ahead of the company’s expectations. Also, the company highlighted that declines in its 2G business
would cease to be a headwind for the segment after Q2 2012. Total revenue from 2G is expected to be in
the low tens of millions for CQ2’2012 vs. ~$800mm for the Hand segment.

Also, despite pushing out the ramp in 3G revenue from Nokia to 2013 (earlier the estimate was for late
2012) BRCM continues to see improving momentum for its 3G business and expects it to grow during
2012. In our opinion, this may be indicative of increased volumes and penetration with customers like
Samsung, ZTE and other Chinese indigenous manufacturers.




7                                                                           BNP PARIBAS                                         24 MAY 2012
Smartphone Spotlight                                                                                      Nitin Kumar



2. Other new product cycles ramping up

Another key driver for BRCM is its first-mover advantage in the 5G WiFi space. The company expanded its
product offering in Q1 and will begin shipping 5G WiFi chips to Netgear (NTGR, 30.86, Not Rated) in Q2.
Some industry estimates suggest they are 1-2 quarters ahead of their competition in this space.
Continued adoption of this technology could be a longer term tailwind for BRCM that might be
underestimated by markets. Also, within the smartphone value chain, BRCM highlighted increased
demand for its NFC solutions as a potential growth driver.

3. Low exposure to 28nm

BRCM has been largely unaffected by 28nm supply constraints. Their current products are primarily at
the 65nm while some of the newer products are manufactured at the 40nm node. BRCM does not expect
28nm revenue until 2013 since they will use a later stage process. Given current supply constraints at
28nm, we feel the threat from QCOM (legacy Atheros) to BRCM’s lead in connectivity chips is also
diminished. Also, this opens a window of opportunity for BRCM with smaller vendors who might suffer if
QCOM allocates its capacity to Samsung and Apple.




Risks to our view

BRCM faces several challenges that could offset the upside from the catalyst discussed above. We have
highlighted these risks in our earlier note, and reiterate them here.

1. Delayed LTE Roadmap

BRCM does not expect LTE revenues until 2013. LTE has been a source of growth for many communication
IC companies (for instance QCOM expects LTE to be a third of shipments for CY 2012). BRCM is already
“late to the party” and further delays could pose downside risk.

2. Lagging baseband technology roadmap

We have been cautious of BRCM’s lagging baseband technology roadmap compared to competitors like
MediaTek and Qualcomm, particularly in application processors and basebands. Although its newest
offerings – the single core BCM21553 and the dual core BCM28150 – claim to reduce the bill of materials
for 3G phones by ~30-50%for lower-end phones8, BRCM has not gained critical mass with smartphone
vendors. Also, while QCOM, Samsung and Apple are moving to newer arcitechtures (ARM A15) and
processes (28nm), BRCM is still playing catch-up in this space. Any indications of weakening 3G
momentum could weigh heavily on the stock.

3. Hyper-competitive China Market

In the hyper competitive China 3G market, on one hand BRCM must overcome the cost-efficiency of
Mediatek, while on the other hand they must dislodge market incumbent and technology leader QCOM.
BRCM is trying to convert leadership in “other communications” to market share in baseband and AP. It
faces an uphill battle and we continue to monitor for any signs of missteps.




8
    Weiyee IN, TMT In Brief: Wireless Chipset Fray, January 12, 2012.


8                                                                BNP PARIBAS                              24 MAY 2012
Smartphone Spotlight                                                                                                                                                 Nitin Kumar



RF Micro Devices: Catalysts being discounted
Summary of our pre-earnings view

Our view was that RFMD’s underperformance (down ~17%) compared to tech stocks in general (XLK ETF
up ~18%) and RF makers is particular (average increase of ~41%) during CQ1’2012 was driven by
expectations of weak 2G/3G demand for handsets in China. Read-throughs based on BNPP Asia Tech
reports suggested to us that the China slowdown could be abating, positioning RFMD to benefit from
longer term catalysts.

CQ1’2012 earnings summary

RFMD reported FQ4’2012 (March quarter) sales of $187.93 million compared to Bloomberg consensus
estimate of $185.19 million and company guidance of $185 million. EPS was -$0.02/sh versus consensus
of -$0.009/sh. The company highlighted “greater than seasonal declines amongst handset manufacturers
in China and at a European handset manufacturer” for the decline in FQ4’2012 sales. These results were
consistent with the guidance that the company had provided in January. Gross margins improved by 220
bps sequentially to 32.4% versus consensus estimates of 31.7%.

RFMD guided to FQ1’2013 (June quarter) sales of $202 million, a sequential increase of approximately 8%.
Non GAAP gross margin is expected to grow by another 100 to 200bps. Non GAAP EPS guidance is for
breakeven to $0.02/sh. RFMD stock has declined ~10% since earnings were released on April 24.

Thoughts post-earnings: Catalysts being discounted

Strengthening demand from Chinese manufacturers removed the key headwind and led to guidance of 8%
sequential quarterly sales growth in CQ2’2012. Increasing complexity of LTE and greater exposure to
Samsung are incremental positives that could offset continued exposure to Nokia and 2G.

1. China handset market back on growth track

During the recent earnings season, several smartphone value chain companies including RFMD
highlighted recovering momentum in the China handset market. We summarize some of these comments
in Exhibit 5 below. RFMD works with key baseband manufacturers – QCOM, MediaTek and Spreadtrum
(SPRD US, 15.30, Not Rated) across both W-CDMA and TD-SCDMA and estimates a ~30% market share

EXHIBIT 5: Comments on China handset recovery
 Ticker    Company            Date        Comments
 VSH US    Vishay             2-May-12    Asia is improving fast after a very slow start into the year. We saw significantly increased orders from almost all
           Intertechnology                segments. Naturally, for the region this upturn is heavily oriented towards consumer segments like smartphones,
                                          laptops and pure consumer.


 INVN US   Invensense         3-May-12    In a large part, we saw this as a strong performance from our China handset and gaming customers.

                                          Major handset vendors in China are showing better than expected entry to the high-end smartphone and mid-
                                          range smartphone, with adopting Ice Cream Sandwich, adopting motion interface.

 2454 TT   MediaTek           27-Apr-12   Furthermore, we raised our 2012 full year smartphone shipment guidance to 75 million units from the 50 million
                                          units guided previously.

                                          [In response to a question]: ... our view is out of that 75 million units, overall speaking we are still talking about a
                                          good 80% of that, our sales domestic in China, only 20% outside China.

 RFMD US   RF Micro Devices   24-Apr-12   Order visibility into China has improved and we are forecasting sequential growth in the June quarter.

                                          The China market is transitioning now to 3G and this has the effect of tripling RFMD's dollar content opportunity
                                          in that key market.



Sources: Company earnings call transcripts




9                                                                                       BNP PARIBAS                                                                  24 MAY 2012
Smartphone Spotlight                                                                                          Nitin Kumar



2. Opportunity from LTE complexity

Peter YU from BNPP Asia Tech recently highlighted the complexity faced by OEMs in developing a LTE
“world mode” device given LTE spectrum fragmentation9. As many as 38 different frequency combinations
may be used in LTE deployment by 2015. As Peter notes, while an integrated baseband solution
supporting all wireless protocols is available (QCOM MDM9615), there is still a need for multiple RF chips.
This could raise RF dollar content on LTE phones to $8-10, compared to $5-6 for current 3G phones.

Beyond the industry-wide opportunity with LTE phones, we feel RFMD may have a product set that will be
attractive to high-end device makers facing the LTE dilemma. RFMD recently introduced its PowerSmart
4G converged multimode, multi-band power platform capable of up to 12 bands of 4G LTE, 3G and 2G
(combined). Although RFMD’s chip is not the panacea that addresses the complexity faced by LTE device
makers, it helps address some of their power consumption and PCB footprint issues by using just two dies
compared to less power-efficient multi-die designs in competitor products.

3. Leverage to Samsung growth

As we highlighted in our earlier note, RFMD has significant (~14%) revenue exposure to Samsung, which is
their only >10% customer as of CQ1’2012. RFMD is broadly represented across Samsung’s portfolio of
devices including popular models like the Galaxy SI, SII, and Nexus. The company recently announced
further design wins on Samsung’s Galaxy SIII, Galaxy Note, Ace and Beam models. In our view, increased
leverage to the Samsung growth story is a favorable outcome.

4. Changing business mix

In addition to growing revenues with Samsung sequentially in CQ1, RFMD management suggested that
Nokia’s (NOK1V FH, EUR 2.124, Not Rated) share of revenues has declined “significantly” below 10%. Also,
while the company did not announce any specific design wins, they suggested that they expect to add one
or two more vendors to the >10% customer list through their integrated RF solutions. In our view, these
changes to the customer mix align RFMD closely with longer term dynamics in the smartphone industry.

Risks to our view

1. Continued exposure to Nokia and 2G

Although the share of Nokia and 2G is declining, RFMD’s continued exposure to both these sources of
revenue has been a concern for investors. Declines in both businesses could potentially offset gains from
catalysts discussed above.

2. Increased R&D expense

RFMD increased guidance for 2012 R&D based on targeted OEM projects and near term revenue
opportunities. In our view, if the company does not announce design wins based on this increased R&D,
the stock could face more downside risk.

3. Low gross margins

Finally, gross margins have been at sub-40 levels given approximately 50% utilization at RFMD’s foundry.
The company recently formed the Compound Semiconductor Group (CSG) with primary focus on the
foundry business. Failure to improve utilization and margins may lead to further value erosion.




9
    Peter YU, Samsung Electronics – LTE fragmentation, May 21, 2012.


10                                                             BNP PARIBAS                                    24 MAY 2012
Smartphone Spotlight                                                                                      Nitin Kumar



Skyworks Solutions: No conviction read-throughs
Summary of our pre-earnings view

Although we did not dispute the strength of the company’s diversified business model, our enthusiasm
was tempered by its revenue exposure to Nokia – both directly and through FoxConn International (“FIH”)
(2038 HK, HKD 3.44, HOLD). Given Nokia’s declining share of global smartphone shipments, we were wary
of a potential “product hole” in 2H 2012 if design wins at other OEMs did not materialize.

CQ1’2012 earnings summary

SWKS reported FQ2’2012 revenues of $364.69 million compared to consensus estimates of $360.24 million
– a 1.2% surprise. EPS for the March quarter was $0.42/sh versus consensus estimates of $0.40/sh. Gross
margins were a healthy 43.2%.

For FQ3’2012 (June quarter), SWKS guided to ~5% sequential sales growth, i.e., sales of $383 million
compared Bloomberg consensus estimates of $381.6 million prior to the earnings call. The company
expects margins to continue to improve during 2012 as well.

Thoughts post-earnings: Reaping the benefits of diversification

In our opinion, SWKS’ CQ1’2012 results and CQ2’2012 guidance demonstrated its business strategy of
diversifying revenue streams so that challenges in any one area could be offset by strength in another.
Thus the company was able to overcome the “product hole” that we expected it might encounter in
CQ2’2012. With this challenge behind it, we expect longer term drivers of growth that we highlighted in
our April note (incremental dollar-content on LTE, growing smartphone shipments) to take over.

However, we are cautious of further upside from current prices since SWKS has significantly
outperformed the broader semiconductor sector in 2012. The stock is up ~61% compared to an increase
of ~2% in the SOX Index. Thus, on balance we no longer have a conviction view on the stock unless
additional value chain read-throughs emerge.

The following are some takeaways related to SWKS and its smartphone value chain from the CQ1’2012
earnings season.

1. Diversification at SWKS

The following examples of SWKS’ diversified business strategy were discussed at the earnings call:

     a)   Smartphone customers: SWKS announced design wins on various flagship smartphone devices,
          including the Samsung Galaxy SIII, Huawei Ascend and MediaPad and the HTC One. These wins
          have helped further diversify the company’s revenue exposure across smartphone vendors.

     b) Products: SWKS has invested heavily in diversifying its product portfolio. In addition to its
        traditional power amplifier (PA) modules, the company highlighted its ability to pursue
        incremental dollar content with smartphone OEMs through products like antenna switch
        modules (ASMs), GPS low noise amplifiers, power management, backlight and display solutions.
        As management noted, several of these products were introduced in the last 18 months.

     c)   Customer industries: Beyond smartphones, SWKS’ high performance analog (HPA) division has
          been diversifying into new verticals like wireless networking, gaming, military avionics, LED
          backlighting and medical devices. Design wins with Sony’s Playstation 3 gaming console and LG
          televisions have helped HPA contribute 35% of SWKS revenue.




11                                                         BNP PARIBAS                                    24 MAY 2012
Smartphone Spotlight                                                                                                                 Nitin Kumar



2. Diversification at FIH

As Laura CHEN from BNPP Asia Tech has noted10, FoxConn International (“FIH”) has been aggressively
trying to increase its share with other OEMs to compensate for the detoriating Nokia business. Laura
estimates Huawei is now a 10-15% sales contributor for FIH. The company is also targeting local Chinese
vendors and Laura expects these manufactures to contribute approximately 10% of FIH sales in 2 years.
Other major OEMs whose share of FIH sales has increased include Sony (6758 JP, JPY 1,100, Not Rated), LG
and Motorola / Google.

Exhibit 5 below highlights the changes to FIH downstream value chain based on Bloomberg and BNPP Asia
Tech estimates. These changes in FIH’s customer mix prompt us to revisit our higher estimates of SWKS’
total exposure to Nokia.

EXHIBIT 6: FIH downstream Value Chain
                             APRIL 2012                                                      MAY 2012
     Ticker      Company                          % of Revenue       Ticker      Company                          % of Revenue
     NOK1V FH    Nokia OYJ                                46.4       NOK1V FH    Nokia OYJ                                23.7

     MMI US      Motorola Mobility Holdings Inc           12.9       6758 JP     Sony Corp                                22.7
     40978Z CH Huawei Technologies Co Ltd                 15.0 (1)   066570 KS   LG Electronics Inc                       22.5

     066570 KS   LG Electronics Inc                        9.1       MMI US      Motorola Mobility Holdings Inc           18.8
                                                                     40978Z CH Huawei Technologies Co Ltd                 15.0 (1)

Sources: Bloomberg, (1) Estimate from BNPP Asia Tech




3. Nokia and FIH are still key customers

SWKS did not update its revenue exposure to any specific vendor or ODM at the earnings call. However,
management noted that Samsung, Nokia and FIH remain the only customers with more than 10% of
revenue exposure.

As discussed above, while we are less cautious of a “product hole”, continued high exposure to Nokia and
FIH is still a potential risk for SWKS. On April 26, despite efforts to diversify the customer base, FIH issued
a profit warning, stating that 1H12 losses could widen due to weakening end-demand, detoriating ASPs
and product transitions. We will continue to monitor the value chain for any early signs that these same
factors are causing headwinds for SWKS.




10
     Laura CHEN, FOXCONN INT'L HDGS - Positive 2H11 result, March 23, 2012.


12                                                                   BNP PARIBAS                                                     24 MAY 2012
Smartphone Spotlight                                                                                           Nitin Kumar



Other Key Takeaways from Earnings
Overall competitive landscape remains the same
KEY TAKEAWAY

Although a sluggish start to the year led to ~10% decline in global smartphone shipment units, the longer
term trend of strong smartphone growth remains intact. At the vendor level, AAPL and Samsung continue
to dominate, while HTC, Nokia and RIM (RIM CN, CAD 11.19, Not Rated) struggle. “Other” vendors –
particularly from China – continue to be important.

Global Shipment Trends

Exhibit 7 below shows smartphone unit shipments by vendor for CQ1’2012. As we discussed in our April
report, despite a sluggish start to the year, CQ1’2012 smartphone shipments rebounded in March leaving
total shipments down ~10%. This was still the worst sequential decline since 2009. However yoy
shipments were up ~43%, thus reiterating the continued momentum for smartphones.

EXHIBIT 7: Global Phone Shipments
                              --- 1Q 2012 ---          --- 4Q 2011 ---    QoQ      --- 1Q 2011 ---    YoY
                Vendor        Units   Market %         Units   Market % Change %   Units   Market % Change %
                SMARTPHONES
                Samsung       42.2       29.1          36.1      22.5     16.8     11.5      11.3    267.0
                Apple         35.1       24.2          37.0      23.1     -5.2     18.6      18.3     88.7
                Nokia         11.9       8.2           19.6      12.2    -39.2     24.2      23.8    -50.8
                RIM            9.7       6.7           13.0       8.1    -25.3     13.8      13.6    -29.7
                HTC            6.9       4.8           10.2       6.4    -32.6      9.0       8.9    -23.3
                Other         39.1       27.0          44.6      27.8    -12.4     24.5      24.1     59.6
                Total        144.9                    160.6               -9.8     101.6              42.6


Sources: IDC Worldwide Mobile Phone Tracker, May 1, 2012




Vendor Trends

At the vendor level, longer-term competitive dynamics in the industry that we highlighted in our April
report remain intact:

1 Apple and Samsung domination: These two vendors accounted for approximately 53% of global
   smartphone shipments in Q1 2012. Samsung will begin shipping its Galaxy SIII flagship device in
   Europe at the end of May, with US shipments expected in June. We expect Apple’s iPhone 5 to be
   released in October. Both devices should provide further momentum to these vendors.

2 Emergence of “Other”: Although market share for the “other”11 category declined slightly (~0.8%) in
   CQ1’2012, it is still higher on a yoy basis, reflecting growth for these OEMs. The BNPP Asia Techteam
   expects the “other” category to grow from ~24% market share in 2011 to ~30% by 201312.




11
   Includes LG, Motorola (MMI, NA, Not Rated), Sony Ericsson, Huawei, ZTE (763 HK, HKD 15.16, BUY) and other
low-cost vendors.
12
   Laura CHEN. Taiwan Technology – Getting Smarter, February 12, 2012.


13                                                                        BNP PARIBAS                          24 MAY 2012
Smartphone Spotlight                                                                                                                                                            Nitin Kumar



3 Nokia still struggling: Nokia’s share of global smartphone units dropped below 10% for the first time
   since 2008. These figures exclude sales of the Lumia 900, Nokia’s new flagship device. Initial reports
   for Lumia 900 shipments were weak although recent media reports suggest improving momentum13.

4 HTC facing challenges: As Laura CHEN from BNPP Asia Tech14 has noted, HTC continues to struggle with
   retaining market share in smartphones. April sales for the company were ~20% on a YoY basis, below
   the 16% decline guided by the company for Q2’2012.

5 RIM losing steam: Despite previewing the Blackberry 10 OS earlier than expected, has largely failed to
   generate interest amongst consumers and investors alike. The company continues to struggle to
   maintain market share given its lagging technology roadmap.



28nm constraints: A bottleneck and an opportunity
KEY TAKEAWAY

While 28nm is currently a bottleneck for OEMs and chipmakers, we expect it will be a tailwind for
foundries for the rest of 2012. Szeho NG from BNPP Asia Tech expects TSMC to benefit disproportionately
from the demand for 28nm. We also think the improved foundry capex outlook will continue to be an
opportunity for semiconductor production equipment (SPE) suppliers through 2012.

A bottleneck for the first order value chain

During the recent earnings season, several smartphone chip makers indicated that shortage of 28nm
capacity at TSMC would affect CQ2’2012 earnings. In Exhibit 8 below, we summarize some of the
comments from these companies. These comments confirm that yields at TSMC for 28nm are improving
as expected, a view Szeho NG from BNPP Asia Tech has highlighted in his recent notes15. Supply
shortages were driven by demand being greater than available capacity.

EXHIBIT 8: Select Management comments regarding 28nm supply constraints
Ticker    Company        Date        Comments

QCOM US QUALCOMM         18-Apr-12   Although the manufacturing yields are progressing per expectations, there's a shortage of 28-nanometer capacity and at this stage we cannot secure
                                     enough supply to meet the increasing demand we're experiencing.

                                     Looking forward, we believe we will see significant improvement in supply in the December quarter and we will continue to work this issue aggressively.


NVDA US Nvidia Inc       11-May-12   Demand is high for Kepler, and although supply will continue to improve, we are not able to meet all our OEM and channel demand in Q2.

                                     We do not expect the 28-nanometer supply situation to resolve itself until later this year.

INVN US Invensense Inc 3-May-12      In the current quarter, a number of our key customers were caught off-guard by temporary component shortages associated with the new model 4G LTE
                                     smartphone, which has resulted in push-out of their new product releases to the following quarters or downward adjustment in their current quarter
                                     forecast. However, we do not believe that these component shortages will have a significant impact on the overall market adoption or development of
                                     the market for our products and solutions.

ALTR US Altera           19-Apr-12   Our turns business was back-end loaded. As we attempted to fill those orders in the final weeks of the quarter, we had demand for products without the
                                     corresponding supply. As we exited Q1, we experienced lengthening of foundry lead times, mainly for 28 and 40 nanometer product.

                                     [In response to a question]: The yields in 28 nanometers, from our perspective, are fine. The challenge is capacity is very tight on 28 nanometer


Sources: Company earnings call transcripts




13
   Demand for Nokia Lumia 900 4G higher than supply? May 10, 2012.
14
   Laura CHEN, HTC Corp – Challenging outlook continues, April 25, 2012.
15
   Szeho NG, TSMC – An elephant can fly, March 26, 2012.


14                                                                                   BNP PARIBAS                                                                               24 MAY 2012
Smartphone Spotlight                                                                                                                                            Nitin Kumar



But a blessing for foundries and SPE makers

Szeho NG from BNPP Asia Tech estimates that TSMC fabs are running at mid-90% capacity, with advanced
28/40nm capacity maxed out16. He expects monthly sales to remain above TWD 40bn for the rest of 2012
(April sales were TWD 40.5bn) based on good order visibility through 3Q’2012.

 At the same time, TSMC has significantly increased capex to address capacity constraints. The company
increased capex for 2012 to a record USD 8.0-8.5 billion from the earlier USD 6.0 billion with USD 1.3-1.5
billion of the increase dedicated to 28nm capacity build out to meet the demand17. Szeho notes that this
pace of capacity ramp-up to 50,000 12-inch wafers per month (wpm) for 28nm and below processes
exiting 2012 is unprecedented in TSMC’s history. In the past, it took TSMC at least 2.5 years to ramp up to
that level of capacity.

Exhibit 9 shows key US companies that supply semiconductor production equipment to TSMC. As shown
below, each of these companies reported sales higher than Bloomberg consensus estimates for CQ1’2012.
Comments from these companies suggest that foundry capacity remains tight and strong order flows from
28nm capacity build-up are expected to continue for the remainder of 2012.

EXHIBIT 9: TSMC Capex Suppliers
 Data as of May 18, 2012       % of TSMC      % of Rev         --- CQ1'2012 Results ---
 Ticker      Company                Capex from TSMC Report Dt       Est. (1)   Actual   Surp % Company Comments
 AMAT US     Applied                  13.4         10.0 5/17/2012    2,400      2,541     5.9  Results reflect strength in our semiconductor equipment business driven
             Materials Inc                                                                       by robust foundry spending

                                                                                                 Foundry investment has contributed almost 60% of our revenue in the first
                                                                                                 two quarters of FY2012

                                                                                                 Despite the uptick in Q2, we believe foundry investment will be
                                                                                                 maintained in the second half of 2012 and distributed over a broader base
                                                                                                 of customers.

 NVLS US     Novellus                  3.5         12.0 4/18/2012     316       327       3.3    [In response to a question]: We see the strength coming in foundry and
             Systems Inc                                                                         logic. There is a significant amount of investment there both from a
                                                                                                 capacity ramping as well as further technology investments.


 KLAC US     KLA-Tencor                2.5         10.0 4/26/2012     802       841       4.9    Leading-edge foundry capacity remains in tight supply as rapid growth in
             Corp                                                                                the mobility markets is driving demand for increasingly complex
                                                                                                 established application processors into the foundries. In this environment,
                                                                                                 foundry market leaders are ramping production in an effort to meet high
                                                                                                 levels of demand and to secure their positions in an increasingly
                                                                                                 competitive market

 UTEK US     Ultratech Inc             0.4         12.0 4/27/2012     48         50       3.8    Looking at our future booking opportunities … are driven by foundry
                                                                                                 ramping to 28 nanometer node, also for adding capacity for the 40
                                                                                                 nanometer node.

                                                                                                 The bulk of orders for the next four to six quarters will be for 28
                                                                                                 nanometer devices.
Sources: Bloomberg, Company earnings call transcripts

(1) Bloomberg consensus estimates




16
     Szeho NG, TSMC – Record sales trek unfolding, May 11, 2012.
17
     Szeho NG, TSMC – Catch me if you can, April 27, 2012.


15                                                                             BNP PARIBAS                                                                     24 MAY 2012
Smartphone Spotlight                                                                                    Nitin Kumar



In terms of other foundry players, while there has been speculation of potential 28nm capacity at UMC
(2303 TT, TWD 12.75, HOLD), the company expects revenues from 28nm to be only ~5% by year end,
compared to ~20% at TSMC. UMC’s guidance for 2012 capex and 28nm capacity plans was also
unchanged. Szeho NG from BNPP Asia Tech has highlighted UMC’s smaller and weakening balance sheet
(compared to TSMC) as a potential constraint on increasing 28nm capacity18, especially for the HKMG
(high k metal gate) process that is more capital intensive. Thus we don’t anticipate significant
incremental 28nm capacity from this supplier.

GlobalFoundries (Private) is another potential source of 28nm capacity for the industry, and several
media reports suggest that semi companies may be sampling chips with this supplier19.




18
     Szeho NH, UMC - Pull more rabbits out? Hard, April 26, 2012.
19
     UMC surges on Qualcomm order speculation, April 24, 2012.


16                                                              BNP PARIBAS                             24 MAY 2012
Smartphone Spotlight                                                                                             Nitin Kumar



Appendices
Appendix 1: Value Chain Indicator Framework
Our database of smartphone value chain relationships allows us to develop a quantitative framework for
identifying potential “outliers and anomalies” based on market prices and consensus fundamental
estimates. This system acts as a screening mechanism that, when combined with read-through’s from
the BNPP Asia Tech team and our understanding of the industry drivers, can identify potential investment
themes and ideas. We call this the “Value Chain Indicator” framework.

We focus on three types of variables within the quantitative framework:

1 Market returns: We have compile historical price data for the 35 US companies in the smartphone
  value chain. This allows us to calculate various market returns – daily, weekly, monthly, quarterly etc.
  In addition to capturing prices for individual companies, we created smartphone customer price
  indices for each US supplier based on the quantified revenue relationships in our dataset.

2 Consensus fundamental estimates: We also compile annual and quarterly Bloomberg consensus sales
  and earnings estimates for the smart phone value chain companies. Estimates that we consider
  relevant to the value chain are Sales, EBITDA and EPS.

3 Customer fundamental estimate indices: We create supply chain indices of sales and earnings change
  estimates for smartphone value chain suppliers based on consensus estimates for their customers and
  the quantified revenue relationships.

Our variables are measured on different scales i.e. prices, returns, financial estimates. In order to
compare and combine variables in the same system, we transformed them into z-scores using the
formula below.



The quantitative framework combines the variables described above to identify price anomalies and
outliers. Thus the dependent variable (y-variable) in our regression model was the current price – or
rather the z-score of price. We analyze several combinations of independent variables (x-variables) to
see which value chain variables had explanatory power in a linear regression system.

One of the resulting models is based on quarterly changes in prices and estimates for both customers and
suppliers using data starting from January 2011. Results of this model are shown in Exhibit 10 below.

EXHIBIT 10: Quantitative Model - All Observations (as of April 12)

                                                 3



                                                 2
                          Actual Price Z-score




                                                 1



                                                 0



                                                 -1



                                                 -2


                                                                                               R² = 0.4943
                                                 -3
                                                      -3   -2   -1           0             1     2           3
                                                                     Estimated Price Z-score

Sources: BNP Paribas, Bloomberg




17                                                                                   BNP PARIBAS                 24 MAY 2012
Smartphone Spotlight                                                                                          Nitin Kumar



Exhibit 10 charts the actual price (score) on the y-axis and the model estimated price (score) on the x-
axis. If all companies in the smartphone value chain were priced according to the estimate based on
value chain data, all points in the above chart would lie on the green line that runs through the chart –
i.e., the trend line of the regression. Deviations from this trend line are normal and result mainly due to
the fact that our model only explains about 50% of the variance. Many stocks above the line (i.e., the
current price is higher than the model estimate) should be above, and many below should be below.
However, when a company is significantly above or below the trend line (indicated by the 2 red lines and
defined as +/-1 standard error), it prompts us to investigate why. As we dig into these “anomalies”, we
hope to identify potential investment opportunities.




18                                                          BNP PARIBAS                                       24 MAY 2012
Smartphone Spotlight                                                                                                                                 Nitin Kumar



Appendix 2: Smartphone Value Chain

EXHIBIT 11: Smartphone Value Chain

        Other IC /               Memory                Display              Other Comm.          Baseband / App.          ODM / EMS              Smartphone
       Components                                                                ICs                Processor              Partners               Vendors




         Samsung                 Samsung               Samsung                                       Samsung                                  Samsung [005930 KS]
          Toshiba            Toshiba [6502 JP]   LG Display [034220 KS]                              Huawei                                   Huawei [40978Z CH]
     Altera [ALTR US]        Hynix [000660 KS]     AU Opt. [2409 TT]          Qualcomm          Qualcomm [QCOM US]     Hon Hai [2317 TT]        Apple [AAPL US]
   Analog Dvcs [ADI US]      SanDisk [SNDK US]   Chimei Inn. [3481 TT]        Texas Inst        Texas Inst [TXN US]   FoxConn Int [2038 HK]    Nokia [NOK1V FH]
      Vishay [VSH US]         Micron [MU US]        Cypress [CY US]           Broadcom          Broadcom [BRCM US]        Jabil [JBL US]         HTC [2498 TT]
     Infineon [IFX GR]                             Wintek [2384 TT]            STMicro           STMicro [STM IM]     Flextronics [FLEX US]   LG Elec [066570 KS]
         Motorola                                    TPK [3673 TT]                                                                             Motorola [MMI US]

      Sony [6758 JP]                                                                                                                                 Sony

      Xilinx [XLNX US]                                                    Nuance [NUAN US]       Nvidia [NVDA US]      Pegatron [4938 TT]        RIM [RIM CN]
 Maxim Intgtd [MXIM US]                                                   Marvell [MRVL US]     MediaTek [2454 TT]     Celestica [CLS CN]       ZTE [000063 CH]
  Linear Tech [LLTC US]                                                   Skyworks [SWKS US]                          Cogo Grp [COGO US]
   NXP Semi [NXPI US]                                                     Freescale [FSL US]
      Rohm [6963 JP]                                                       Avago [AVGO US]
        LSI [LSI US]                                                      RF Micro [RFMD US]
     Molex [MOLX US]                                                      TriQuint [TQNT US]
   ON Semi [ONNN US]                                                         CSR [CSR LN]
  GoerTek [002241 CH]                                                     Anadigics [ANAD US]
       AVX [AVX US]                                                       Sequans [SQNS US]
     Fujitsu [6702 JP]                                                          Fujitsu
     Renesas [6723 JP]                                                         Renesas
     Fairchild [FCS US]
  Silicon Labs [SLAB US]
  InvenSense [INVN US]
   Int. Rectifier [IRF US]
     Cavium [CAVM US]
  Dialog Semi [DLG GR]
  Cirrus Logic [CRUS US]
      Intersil [ISIL US]
     Diodes [DIOD US]
  LITE-ON IT [8008 TT]

Wistron Neweb [6285 TT]

     Genius [3406 TT]

   Nanya PCB [8046 TT]

   TXC Corp [3042 TT]

   Unimicron [3037 TT]

     Largan [3008 TT]




Sources: BNP Paribas




19                                                                         BNP PARIBAS                                                              24 MAY 2012
Smartphone Spotlight                                                                                                                                     Nitin Kumar



Appendix 3: Market Returns by Segment

EXHIBIT 12: Price Performance by Segment


                           Equal Weighting                                Weighted by % Market Cap
                                         Vendors        XLK Equity                      Vendors        XLK Equity

                            1yr                                           1yr

                           3mo                                            3mo

                           1mo                                            1mo
     Smartphone
      Vendors                     -20     -10       0         10     20          -50           0        50          100
                                        Percent Change in Price                        Percent Change in Price




                           Equal Weighting                                Weighted by % Smartphone Revenue                Vs. Vendor Price Index (equal wght)
                                        Suppliers       XLK Equity                     Suppliers       XLK Equity                       Suppliers       Vendors

                            1yr                                            1yr                                             1yr

                           3mo                                            3mo                                             3mo

                           1mo                                            1mo                                             1mo
     ODM / EMS
      Partners                    -20     -10       0         10     20          -40        -20          0          20           -20              -10             0
                                        Percent Change in Price                        Percent Change in Price                         Percent Change in Price




                           Equal Weighting                                Weighted by % Smartphone Revenue                Vs. Vendor Price Index (equal wght)
                                        Suppliers       XLK Equity                     Suppliers       XLK Equity                       Suppliers       Vendors

                            1yr                                            1yr                                             1yr

                           3mo                                            3mo                                             3mo

                           1mo                                            1mo                                             1mo
     Baseband /
     App Proc.                    -20     -10       0         10     20          -20     -10       0         10     20           -15        -10         -5        0
                                        Percent Change in Price                        Percent Change in Price                         Percent Change in Price




                           Equal Weighting                                Weighted by % Smartphone Revenue                Vs. Vendor Price Index (equal wght)
                                        Suppliers       XLK Equity                     Suppliers       XLK Equity                       Suppliers       Vendors

                            1yr                                            1yr                                             1yr

                           3mo                                            3mo                                             3mo

                           1mo                                            1mo                                             1mo
   Other Comm
       ICs                        -40        -20          0          20          -40        -20          0          20           -40              -20             0
                                        Percent Change in Price                        Percent Change in Price                         Percent Change in Price



(continued on next page)

Sources: Bloomberg (data as of May 23, 2012)




20                                                                        BNP PARIBAS                                                                   24 MAY 2012
Smartphone Spotlight                                                                                                                                   Nitin Kumar



EXHIBIT 13: Price Performance by Segment (continued)


                           Equal Weighting                               Weighted by % Smartphone Revenue               Vs. Vendor Price Index (equal wght)
                                        Suppliers      XLK Equity                     Suppliers       XLK Equity                      Suppliers       Vendors

                            1yr                                           1yr                                            1yr

                           3mo                                           3mo                                            3mo

                           1mo                                           1mo                                            1mo

         Memory                   -40        -20         0          20          -40        -20         0           20          -40              -20             0
                                        Percent Change in Price                       Percent Change in Price                        Percent Change in Price




                           Equal Weighting                               Weighted by % Smartphone Revenue               Vs. Vendor Price Index (equal wght)
                                        Suppliers      XLK Equity                     Suppliers       XLK Equity                      Suppliers       Vendors

                            1yr                                           1yr                                            1yr

                           3mo                                           3mo                                            3mo

                           1mo                                           1mo                                            1mo

                               -100          -50         0          50      -100           -50         0           50          -60        -40         -20       0
         Display
                                        Percent Change in Price                       Percent Change in Price                        Percent Change in Price




                           Equal Weighting                               Weighted by % Smartphone Revenue               Vs. Vendor Price Index (equal wght)
                                        Suppliers      XLK Equity                     Suppliers       XLK Equity                      Suppliers       Vendors

                            1yr                                           1yr                                            1yr

                           3mo                                           3mo                                            3mo

                           1mo                                           1mo                                            1mo
      Other IC /
                                  -40        -20         0          20          -20     -10       0        10      20          -30        -20         -10       0
     Components
                                        Percent Change in Price                       Percent Change in Price                        Percent Change in Price




                           Equal Weighting                               Weighted by % Smartphone Revenue               Vs. Vendor Price Index (equal wght)
                                        Suppliers      XLK Equity                     Suppliers       XLK Equity                      Suppliers       Vendors
     2
            1
     2                      1yr                                           1yr                                            1yr

     2      1              3mo                                           3mo                                            3mo

                           1mo                                           1mo                                            1mo
     Second Order
      Value Chain                 -40        -20         0          20          -40        -20         0           20          -30        -20         -10       0
                                        Percent Change in Price                       Percent Change in Price                        Percent Change in Price



Sources: Bloomberg (data as of May 23, 2012)




21                                                                       BNP PARIBAS                                                                  24 MAY 2012
Smartphone Spotlight                                                                                                                                                    Nitin Kumar



Appendix 4: Segment Comparisons

EXHIBIT 14: Segment Comparisons - Equally weighted indices
        Market Price Returns
                                                                                   1 year              3 months            1 month
          % Price Performance




                                     0
                                   -10
                                   -20
                                   -30
                                   -40
                                   -50
                                   -60
                                                                                                                                                                 2 1
                                                                                                                                                                 2
                                                                                                                                                                 2 1
                                         Smartphone   ODM / EMS   Baseband / App                                                                Other IC /   Second Order
                                          Vendors      Partners       Proc.            Other Comm ICs             Memory             Display   Components     Value Chain




        Gross Margins
                                                                            CQ2'11            CQ3'11        CQ4'11         CQ1'12
          % Gross Margin




                                   50

                                   40
                                   30

                                   20

                                   10

                                     0
                                                                                                                                                                 2 1
                                                                                                                                                                 2
                                                                                                                                                                 2 1
                                         Smartphone   ODM / EMS   Baseband / App                                                                Other IC /   Second Order
                                          Vendors      Partners       Proc.            Other Comm ICs             Memory             Display   Components     Value Chain




        Days of Inventory
                                                                            CQ2'11            CQ3'11         CQ4'11         CQ1'12
          Days of Inventory




                                   150
                                   125
                                   100
                                   75
                                   50
                                   25
                                     0
                                                                                                                                                                 2 1
                                                                                                                                                                 2
                                                                                                                                                                 2 1
                                         Smartphone   ODM / EMS   Baseband / App                                                                Other IC /   Second Order
                                          Vendors      Partners       Proc.            Other Comm ICs             Memory             Display   Components     Value Chain




        Changes in Bloomberg Consensus Sales Estimates - CQ1 2012
                                                                                   12 weeks              4 weeks
          % Change in BEst Sales




                                   10

                                     0

                                   -10

                                   -20

                                   -30
                                                                                                                                                                 2 1
                                                                                                                                                                 2
                                                                                                                                                                 2 1
                                         Smartphone   ODM / EMS   Baseband / App                                                                Other IC /   Second Order
                                          Vendors      Partners       Proc.            Other Comm ICs             Memory             Display   Components     Value Chain



Sources: Bloomberg (data as of May 23, 2012)




22                                                                                          BNP PARIBAS                                                                24 MAY 2012
Smartphone Spotlight                                                                                                                                                                                  Nitin Kumar



Appendix 5: Trends by Key Smartphone Vendor Value Chains

EXHIBIT 15: Price, Gross Margin, DOI and CQ2-12 Sales Est. Trends by Vendor
 Apple

 % Market Returns                         % Gross Margin (last 2 quarters)                    DOI Trends (last 8Qs) - Indexed to 1                                            Chg in CQ2-12 Sales Est*
              1 week       1 month                        CQ4-11            CQ1-12                           Apple                                 ODM / EMS                             12 weeks      4 weeks
                                                                                                             Baseband / AP                         Other Comm IC
                    -20   -10   0    10                         -20 0        20 40 60                        Memory                                Display                                      -20     0        20
                                                                                                             Other IC
           Apple                                       Apple                                  1.5                                                                                      Apple

     ODM / EMS                                    ODM / EMS                                                                                                                       ODM / EMS
                                                                                              1.0
  Baseband / AP                                Baseband / AP                                                                                                                   Baseband / AP

  Other Comm IC                                Other Comm IC                                                                                                                   Other Comm IC
                                                                                              0.5
         Memory                                     Memory                                                                                                                          Memory

          Display                                    Display                                  0.0                                                                                    Display




                                                                                                    CQ2-10

                                                                                                               CQ3-10

                                                                                                                        CQ4-10

                                                                                                                                 CQ1-11

                                                                                                                                          CQ2-11

                                                                                                                                                   CQ3-11

                                                                                                                                                            CQ4-11

                                                                                                                                                                     CQ1-12
         Other IC                                    Other IC                                                                                                                        Other IC


                                                                                                                                                                              Source: Bloomberg Consensus Est.


 Samsung

 % Market Returns                         % Gross Margin (last 2 quarters)                    DOI Trends (last 8Qs) - Indexed to 1                                            Chg in CQ2-12 Sales Est*
              1 week       1 month                        CQ4-11            CQ1-12                           Samsung                               ODM / EMS                             12 weeks      4 weeks
                                                                                                             Baseband / AP                         Other Comm IC
                    -20   -10   0    10                          0    20       40     60                     Memory                                Display                                      -50     0        50
                                                                                                             Other IC
         Samsung                                    Samsung                                   1.5                                                                                   Samsung

     ODM / EMS                                    ODM / EMS                                                                                                                       ODM / EMS
                                                                                              1.0
  Baseband / AP                                Baseband / AP                                                                                                                   Baseband / AP

  Other Comm IC                                Other Comm IC                                                                                                                   Other Comm IC
                                                                                              0.5
         Memory                                     Memory                                                                                                                          Memory

          Display                                    Display                                  0.0                                                                                    Display
                                                                                                    CQ2-10

                                                                                                               CQ3-10

                                                                                                                        CQ4-10

                                                                                                                                 CQ1-11

                                                                                                                                          CQ2-11

                                                                                                                                                   CQ3-11

                                                                                                                                                            CQ4-11

                                                                                                                                                                     CQ1-12
         Other IC                                    Other IC                                                                                                                        Other IC


                                                                                                                                                                              Source: Bloomberg Consensus Est.


 HTC Corp

 % Market Returns                         % Gross Margin (last 2 quarters)                    DOI Trends (last 8Qs) - Indexed to 1                                            Chg in CQ2-12 Sales Est*
              1 week       1 month                        CQ4-11            CQ1-12                           HTC                                   ODM / EMS                             12 weeks      4 weeks
                                                                                                             Baseband / AP                         Memory
                    -40   -20   0    20                         -50     0      50    100                     Display                               Other IC                                     -30 -20 -10 0    10
                                                                                                             Other Comm IC
             HTC                                         HTC                                  4.0                                                                                       HTC

     ODM / EMS                                    ODM / EMS                                   3.0                                                                                 ODM / EMS

  Baseband / AP                                Baseband / AP                                                                                                                   Baseband / AP
                                                                                              2.0
  Other Comm IC                                Other Comm IC                                                                                                                   Other Comm IC
                                                                                              1.0
         Memory                                     Memory                                                                                                                          Memory

          Display                                    Display                                  0.0                                                                                    Display
                                                                                                    CQ2-10

                                                                                                               CQ3-10

                                                                                                                        CQ4-10

                                                                                                                                 CQ1-11

                                                                                                                                          CQ2-11

                                                                                                                                                   CQ3-11

                                                                                                                                                            CQ4-11

                                                                                                                                                                     CQ1-12




         Other IC                                    Other IC                                                                                                                        Other IC


                                                                                                                                                                              Source: Bloomberg Consensus Est.

(continued on next page)

Sources: Bloomberg (data as of May 23, 2012)




23                                                                                         BNP PARIBAS                                                                                                24 MAY 2012
Smartphone Spotlight                                                                                                                                                                              Nitin Kumar



EXHIBIT 16: Price, Gross Margin, DOI and CQ2-12 Sales Est. Trends by Vendor (continued)
 Nokia

 % Market Returns                          % Gross Margin (last 2 quarters)              DOI Trends (last 8Qs) - Indexed to 1                                            Chg in CQ2-12 Sales Est*
              1 week       1 month                        CQ4-11        CQ1-12                          Nokia                                 ODM / EMS                             12 weeks       4 weeks
                                                                                                        Baseband / AP                         Other Comm IC
                    -40   -20   0    20                         -20 0    20 40 60                       Memory                                Display                                      -20   -10   0     10
                                                                                                        Other IC
            Nokia                                      Nokia                             1.5                                                                                      Nokia

     ODM / EMS                                    ODM / EMS                                                                                                                  ODM / EMS
                                                                                         1.0
  Baseband / AP                                Baseband / AP                                                                                                              Baseband / AP

  Other Comm IC                                Other Comm IC                                                                                                              Other Comm IC
                                                                                         0.5
         Memory                                     Memory                                                                                                                     Memory

          Display                                    Display                             0.0                                                                                    Display




                                                                                               CQ2-10

                                                                                                          CQ3-10

                                                                                                                   CQ4-10

                                                                                                                            CQ1-11

                                                                                                                                     CQ2-11

                                                                                                                                              CQ3-11

                                                                                                                                                       CQ4-11

                                                                                                                                                                CQ1-12
         Other IC                                    Other IC                                                                                                                   Other IC


                                                                                                                                                                         Source: Bloomberg Consensus Est.


 Research In Motion

 % Market Returns                          % Gross Margin (last 2 quarters)              DOI Trends (last 8Qs) - Indexed to 1                                            Chg in CQ2-12 Sales Est*
              1 week       1 month                        CQ4-11        CQ1-12                          Motorola                              ODM / EMS                             12 weeks       4 weeks
                                                                                                        Baseband / AP                         Other Comm IC
                    -20   -10   0    10                         0   20     40    60                     Memory                                Display                                      -30 -20 -10 0     10
                                                                                                        Other IC
             RIM                                         RIM                             2.0                                                                                        RIM

     ODM / EMS                                    ODM / EMS                              1.5                                                                                 ODM / EMS

  Baseband / AP                                Baseband / AP                                                                                                              Baseband / AP
                                                                                         1.0
  Other Comm IC                                Other Comm IC                                                                                                              Other Comm IC
                                                                                         0.5
         Memory                                      Memory                                                                                                                    Memory

          Display                                    Display                             0.0                                                                                    Display
                                                                                               CQ2-10

                                                                                                          CQ3-10

                                                                                                                   CQ4-10

                                                                                                                            CQ1-11

                                                                                                                                     CQ2-11

                                                                                                                                              CQ3-11

                                                                                                                                                       CQ4-11

                                                                                                                                                                CQ1-12
         Other IC                                    Other IC                                                                                                                   Other IC


                                                                                                                                                                         Source: Bloomberg Consensus Est.


 Motorola Mobility Holdings

 % Market Returns                          % Gross Margin (last 2 quarters)              DOI Trends (last 8Qs) - Indexed to 1                                            Chg in CQ2-12 Sales Est*
              1 week       1 month                        CQ4-11        CQ1-12                          Motorola                              ODM / EMS                             12 weeks       4 weeks
                                                                                                        Baseband / AP                         Other Comm IC
                    -40   -20   0    20                         0   20     40    60                                                                                                        -20   -10   0     10
                                                                                                        Memory                                Other IC
         Motorola                                   Motorola                             2.0                                                                                   Motorola

     ODM / EMS                                    ODM / EMS                              1.5                                                                                 ODM / EMS

  Baseband / AP                                Baseband / AP                                                                                                              Baseband / AP
                                                                                         1.0
  Other Comm IC                                Other Comm IC                                                                                                              Other Comm IC
                                                                                         0.5
         Memory                                      Memory                                                                                                                    Memory

          Display                                    Display                             0.0                                                                                    Display
                                                                                               CQ2-10

                                                                                                          CQ3-10

                                                                                                                   CQ4-10

                                                                                                                            CQ1-11

                                                                                                                                     CQ2-11

                                                                                                                                              CQ3-11

                                                                                                                                                       CQ4-11

                                                                                                                                                                CQ1-12




         Other IC                                    Other IC                                                                                                                   Other IC


                                                                                                                                                                         Source: Bloomberg Consensus Est.

Sources: Bloomberg (data as of May 23, 2012)




24                                                                                    BNP PARIBAS                                                                                                24 MAY 2012
Smartphone Spotlight                                                                                                                                                Nitin Kumar



Appendix 6: Price Performance and Analyst Estimates by Company

EXHIBIT 17: Price Performance, Target Price, BNPP Asia Ratings - Constituent Companies
 Data as of May 23, 2012                                 ---- Current Price ----    ----- Market Returns (%) -----     ----- Consensus (1) -----       ----- BNPP (2) -----
   Ticker        Name                                     Curncy         Price     1wk     1mo       3mo        1y          TP       4wk ∆ (%)     Rating      TP       % vs Cons

 Smartphone Vendors
   AAPL US       Apple Inc                                USD          570.56      7.6      1.8       9.2       71.8        735            0.2
   005930 KS     Samsung Electronics Co Ltd               KRW       1,221,000      -0.2     -6.4      3.5       42.6     1,766,647         8.2      BUY     1,700,000          -3.8
   NOK1V FH      Nokia OYJ                                EUR             2.12     -5.0    -22.1     -50.9     -63.3         3            -5.2
   2498 TT       HTC Corp                                 TWD          422.50      2.1     -10.2     -32.8     -61.8        490           -2.6     REDUCE      430            -12.3
   066570 KS     LG Electronics Inc                       KRW          65,200      -2.1    -16.1     -22.8     -32.4      102,869         -1.0     REDUCE    69,000           -32.9
   MMI US        Motorola Mobility Holdings Inc           USD            39.98     0.0      4.8       0.6       68.6        40             1.8
   000063 CH     ZTE Corp                                 CNY            15.63     -6.0    -11.2      -9.5     -26.5        23             0.0
   RIM CN        Research In Motion Ltd                   CAD            11.37     1.8     -13.1     -22.8     -73.0        13            -5.6
   40978Z CH     Huawei Technologies Co Ltd               CNY              Na


 ODM / EMS Partners
   2317 TT       Hon Hai Precision Industry Co            TWD            87.00     1.5     -17.9     -12.1      -5.2        105          -19.3      HOLD       94             -10.4
   2038 HK       Foxconn International Holdings           HKD             3.44     1.5     -25.1     -37.7     -16.5         5           -13.9      HOLD        6             18.5
   JBL US        Jabil Circuit Inc                        USD            19.38     2.2     -11.1     -25.5      -4.9        30             0.0
   FLEX US       Flextronics International Ltd            USD             6.48     -1.1     -1.8      -9.6      -4.5         9             3.2
   4938 TT       Pegatron Corp                            TWD            41.95     -2.9     -7.6      12.2      41.7        49             3.4      BUY        53               7.2
   CLS CN        Celestica Inc                            CAD             7.73     2.7     -12.7     -18.7     -19.6        10             0.1
   COGO US       Cogo Group Inc                           USD             1.91     -3.5    -25.4     -11.6     -68.5         5             0.0


 Baseband / Application Processor
   005930 KS     Samsung Electronics Co Ltd               KRW       1,221,000      -0.2     -6.4      3.5       42.6     1,766,647         8.2      BUY     1,700,000          -3.8
   QCOM US       QUALCOMM Inc                             USD            58.14     1.7      -6.0      -8.4      3.2         72            -0.1
   TXN US        Texas Instruments Inc                    USD            29.14     -0.7     -7.1     -12.5     -14.5        36             0.1
   BRCM US       Broadcom Corp                            USD            32.29     3.2      -6.2     -12.1      -1.3        43             1.8
   2454 TT       MediaTek Inc                             TWD          253.00      -7.2     -3.8     -16.2     -18.4        269           -3.5      BUY        310            15.3
   NVDA US       NVIDIA Corp                              USD            12.44     -1.7     -3.0     -21.2     -31.4        17            -0.4
   STM IM        STMicroelectronics NV                    EUR             4.10     10.0     -7.1     -24.8     -47.5         5            -2.9


 Other Communication ICs
   AVGO US       Avago Technologies Ltd                   USD            33.52     11.5     2.6       -7.7      5.7         42            -1.0
   MRVL US       Marvell Technology Group Ltd             USD            13.10     -1.5    -11.0     -15.3      -7.8        18            -2.1
   NUAN US       Nuance Communications Inc                USD            21.38     -0.9     -3.5     -14.8      0.9         30             0.0
   SWKS US       Skyworks Solutions Inc                   USD            26.11     6.6      9.9       1.0       -1.5        32             3.6
   FSL US        Freescale Semiconductor Ltd              USD             9.86     1.4     -19.4     -41.0     -41.0        18            -0.9
   RFMD US       RF Micro Devices Inc                     USD             3.59     -2.2     -9.6     -27.0     -37.6         6            -0.6
   TQNT US       TriQuint Semiconductor Inc               USD             5.42     6.1      5.7      -17.0     -54.5         6             5.8
   CSR LN        CSR PLC                                  GBp          207.90      -0.4     3.0      -16.4     -43.4        280            4.0
   ANAD US       ANADIGICS Inc                            USD             2.00     0.0      -9.5     -25.7     -34.6         3           -30.4
   SQNS US       Sequans Communications SA                USD             2.16     -4.2     -4.2     -32.0     -83.9         2           -19.4


 Memory
   6502 JP       Toshiba Corp                             JPY          303.00      -5.9     -7.6     -12.7     -26.8        425           -0.9      BUY        458              7.7
   000660 KS     SK Hynix Inc                             KRW          22,400      -8.6    -17.2     -22.4     -25.3      35,844           0.8      BUY      34,000            -5.1
   SNDK US       SanDisk Corp                             USD            32.92     1.8      -9.8     -33.0     -27.0        44            -3.7
   MU US         Micron Technology Inc                    USD             5.75     -3.4    -11.7     -27.7     -40.2        11            -1.8

(continued on next page)

Sources: (1) Bloomberg consensus estimates, (2) BNP Paribas Asia research, Prices and returns from Bloomberg




25                                                                               BNP PARIBAS                                                                    24 MAY 2012
Smartphone Spotlight                                                                                                                                               Nitin Kumar



EXHIBIT 18: Price Performance, Target Price, BNPP Asia Ratings - Constituent Companies (continued)
Data as of May 23, 2012                                  ---- Current Price ----     ----- Market Returns (%) -----     ----- Consensus (1) -----       ----- BNPP (2) -----
  Ticker        Name                                      Curncy         Price     1wk      1mo       3mo        1y          TP      4wk ∆ (%)      Rating      TP      % vs Cons

Display
  034220 KS     LG Display Co Ltd                         KRW          20,400      -1.4     -24.0     -28.8     -43.3      31,927          -2.2      HOLD     28,000           -12.3
  2409 TT       AU Optronics Corp                         TWD            11.85     -7.8     -15.4     -25.5     -48.8        17             0.6     REDUCE      10             -42.1
  3673 TT       TPK Holding Co Ltd                        TWD          407.50       3.0      5.8      -16.2     -51.3        476           -2.5      BUY        500              5.0
  3481 TT       Chimei Innolux Corp                       TWD            12.15     -4.7      -7.3     -22.1     -56.3        14           -13.2     REDUCE      10             -31.0
  CY US         Cypress Semiconductor Corp                USD            12.94      0.7     -14.1     -27.1     -38.1        21             5.3
  2384 TT       Wintek Corp                               TWD            16.70     -8.2     -15.7     -35.5     -49.0        21            -4.1     REDUCE      17             -18.0

Other ICs / Components
  6758 JP       Sony Corp                                 JPY         1,096.00     -5.6     -17.2     -37.0     -51.0       1,430         -15.7
  ALTR US       Altera Corp                               USD            34.07      2.0      0.2      -12.4     -25.6        41            -1.3
  ADI US        Analog Devices Inc                        USD            35.68      0.0      -4.8      -8.2     -11.8        42            -1.6
  6702 JP       Fujitsu Ltd                               JPY          348.00      -5.7     -12.3     -20.4     -13.9        449           -3.7
  IFX GR        Infineon Technologies AG                  EUR             6.31     -2.0     -13.3     -16.4     -19.8         8            -1.1
  XLNX US       Xilinx Inc                                USD            32.07      0.7      -4.4     -13.9      -6.9        39            -1.3
  MXIM US       Maxim Integrated Products Inc             USD            25.30     -1.4      -5.3     -10.8      -5.1        32             4.4
  LLTC US       Linear Technology Corp                    USD            29.16     -1.0      -8.6     -12.5     -12.5        36             0.0
  NXPI US       NXP Semiconductor NV                      USD            21.81      6.6      -8.7     -12.7     -19.8        31             3.8
  6963 JP       Rohm Co Ltd                               JPY         3,045.00     -8.0     -16.9     -24.7     -33.7       3,924          -0.8      HOLD      3,850            -1.9
  LSI US        LSI Corp                                  USD             6.93     -7.5     -13.7     -18.5      -3.2        12            -0.1
  MOLX US       Molex Inc                                 USD            23.47      0.0     -12.6     -14.3     -11.7        28            -1.1
  ONNN US       ON Semiconductor Corp                     USD             6.71     -3.5     -15.0     -25.1     -38.0        11            -2.0
  002241 CH     GoerTek Inc                               CNY            30.60      3.4      17.9      16.0      46.4        27             0.0
  6723 JP       Renesas Electronics Corp                  JPY          263.00      -17.8    -43.9     -56.6     -63.1        376          -23.6
  3008 TT       Largan Precision Co Ltd                   TWD          556.00       3.2      3.5      -13.0     -37.4        558           -2.7     REDUCE      420            -24.7
  AVX US        AVX Corp                                  USD            10.91      0.1     -12.9     -18.5     -29.2        14             0.0
  3037 TT       Unimicron Technology Corp                 TWD            28.85     -2.5     -12.6     -25.8     -42.3        34           -12.6
  VSH US        Vishay Intertechnology Inc                USD             9.89      2.1      -8.5     -21.5     -34.6        16             7.9
  FCS US        Fairchild Semiconductor Intern            USD            13.36      0.4      0.8      -10.4     -23.7        17             0.0
  SLAB US       Silicon Laboratories Inc                  USD            33.84      0.7     -16.2     -26.1     -20.9        43            -2.6
  DLG GR        Dialog Semiconductor PLC                  EUR            15.45      0.5      -5.2      -1.0      13.5        19             0.3
  CRUS US       Cirrus Logic Inc                          USD            27.74      8.7      33.4      21.3      76.7        34             0.0
  CAVM US       Cavium Inc                                USD            24.64      3.7      -9.3     -31.0     -42.9        29            -6.4
  IRF US        International Rectifier Corp              USD            18.68      2.2      -7.8     -18.8     -33.5        25            -2.6
  8046 TT       Nan Ya Printed Circuit Board C            TWD            48.00     -4.6     -13.5     -34.1     -55.1        55            -2.9     REDUCE      45             -17.7
  ISIL US       Intersil Corp                             USD            10.52     -1.2      -1.5      -6.2     -23.4        12             1.0
  INVN US       InvenSense Inc                            USD            10.56      2.4     -27.4     -40.7     -40.7        21             0.7
  DIOD US       Diodes Inc                                USD            19.47      2.2      -8.5     -23.0     -30.6        27            -5.7
  8008 TT       LITE-ON IT Corp                           TWD            28.40     -1.7      -4.5      -6.1      -8.8         0
  3406 TT       Genius Electronic Optical Co L            TWD          204.50      -2.2      -8.5     -29.2     -31.9        132            0.0
  6285 TT       Wistron NeWeb Corp                        TWD            53.80     -2.5      -8.5     -19.5     -44.9        78            -1.6
  3042 TT       TXC Corp                                  TWD            42.55      1.3      -5.0      -4.3     -22.1        48            -1.4

Second Order Value Chain
  2330 TT       TSMC                                      TWD            79.10     -7.1      -6.1      0.0       6.2         93             0.0      BUY        96               2.9
  GLW US        Corning Inc                               USD            12.77     -0.4      -4.3      -7.1     -34.7        16            -1.5
  ASML NA       ASML Holding NV                           EUR            36.25      1.1      -1.6      4.9       35.2        39             0.3
  AMAT US       Applied Materials Inc                     USD            10.67      1.8      -7.1     -15.5     -22.2        14            -4.9
  8035 JP       Tokyo Electron Ltd                        JPY            3,725     -8.7     -16.2     -17.8     -15.5       4,692          -2.2      BUY       4,700             0.2
  2303 TT       United Microelectronics Corp              TWD            12.75     -8.9     -14.4     -14.4     -12.4        16             0.3      HOLD       14              -9.7
  2311 TT       Advanced Semiconductor Enginee            TWD            27.70     -1.8      -4.2      -3.1      -6.1        33             2.3      BUY        35               6.7
  5214 JP       Nippon Electric Glass Co Ltd              JPY          511.00      -8.1     -21.5     -33.2     -54.0        658           -6.7     REDUCE      520            -21.0
  3436 JP       Sumco Corp                                JPY          682.00      -7.1     -21.5     -20.0     -51.5        880           -3.0
  PANL US       Universal Display Corp                    USD            29.74      3.2     -21.6     -34.4     -30.5        46            -4.0
  AMKR US       Amkor Technology Inc                      USD             4.53      3.0     -20.1     -28.2     -28.1         8            12.5
  CCMP US       Cabot Microelectronics Corp               USD            33.01      1.8      -3.0      -8.8      -3.9        42             0.0
  STAT SP       STATS ChipPAC Ltd                         SGD             0.39     -6.0     -19.6     -26.4     -44.7         0
  HIMX US       Himax Technologies Inc                    USD             2.04     -0.5      1.5       37.8      -6.8         4            31.6
  LTXC US       LTX-Credence Corp                         USD             6.49      5.5      0.2       -9.2     -16.8         9             4.3

Sources: (1) Bloomberg consensus estimates, (2) BNP Paribas Asia research, Prices and returns from Bloomberg




26                                                                               BNP PARIBAS                                                                     24 MAY 2012
Smartphone Spotlight                                                                                                                                         Nitin Kumar



Appendix 7: Consensus Valuation Multiples by Company

EXHIBIT 19: Consensus Valuation Metrics - Constituent Companies
Data as of May 23, 2012                                  ----- Market Valuation -----             -------------------- Bloomberg Consensus Estimates --------------------
                                                                        in USD millions              P/E Ratio              EBITDA ( USD mm)               EV / EBITDA
  Ticker        Name                             Crncy       Price     Mkt Cap     Entp Val      FY 2012e   FY 2013e        FY 2012e    FY 2013e       FY 2012e     FY 2013e

Smartphone Vendors
  AAPL US       Apple Inc                        USD        570.56      530,442     420,510        12.1 x        10.5 x       61,988      72,852            6.8 x         5.8 x
  005930 KS     Samsung Electronics Co Ltd       KRW     1,221,000      153,176     146,663
  NOK1V FH      Nokia OYJ                        EUR          2.12       10,061          6,120    -11.7 x        24.6 x         -109        1,877        -56.0 x          3.3 x
  2498 TT       HTC Corp                         TWD        422.50       12,379          9,750      7.5 x         7.2 x        1,469        1,250           6.6 x         7.8 x
  066570 KS     LG Electronics Inc               KRW        65,200        9,210         12,886     10.3 x         8.2 x
  MMI US        Motorola Mobility Holdings Inc   USD         39.98       12,141          9,076     73.2 x        46.9 x          337         410          26.9 x         22.1 x
  000063 CH     ZTE Corp                         CNY         15.63        8,084          9,968     14.0 x        11.2 x        1,011        1,285           9.9 x         7.8 x
  RIM CN        Research In Motion Ltd           CAD         11.37        5,668          3,894      6.2 x         6.1 x        2,406        2,477           1.6 x         1.6 x
  40978Z CH     Huawei Technologies Co Ltd       CNY            Na          Na             Na


ODM / EMS Partners
  2317 TT       Hon Hai Precision Industry Co    TWD         87.00       30,805         34,113     10.3 x         8.3 x        5,696        6,963           6.0 x         4.9 x
  2038 HK       Foxconn International Holdings   HKD          3.44        3,108          1,688     38.6 x        23.6 x          333         411            5.1 x         4.1 x
  JBL US        Jabil Circuit Inc                USD         19.38        3,952          4,658      7.4 x         6.4 x        1,081        1,219           4.3 x         3.8 x
  FLEX US       Flextronics International Ltd    USD          6.48        4,381          5,065      6.3 x         5.4 x        1,292        1,417           3.9 x         3.6 x
  4938 TT       Pegatron Corp                    TWD         41.95        3,103          3,685     13.0 x         8.2 x          800                        4.6 x
  CLS CN        Celestica Inc                    CAD          7.73        1,640           993       7.1 x         6.5 x          325         353            3.1 x         2.8 x
  COGO US       Cogo Group Inc                   USD          1.91           64            39       3.7 x         3.2 x           21           24           1.9 x         1.6 x


Baseband / Application Processor
  005930 KS     Samsung Electronics Co Ltd       KRW     1,221,000      153,176     146,663
  QCOM US       QUALCOMM Inc                     USD         58.14       98,365         72,876     15.3 x        13.7 x        7,499        8,753           9.7 x         8.3 x
  TXN US        Texas Instruments Inc            USD         29.14       33,106         34,938     16.3 x        12.3 x        3,913        4,807           8.9 x         7.3 x
  BRCM US       Broadcom Corp                    USD         32.29       17,505         16,644     10.8 x        10.0 x        1,937        2,127           8.6 x         7.8 x
  2454 TT       MediaTek Inc                     TWD        253.00        9,945          9,031     20.4 x        16.3 x
  NVDA US       NVIDIA Corp                      USD         12.44        7,559          4,451     13.0 x        10.6 x          811         958            5.5 x         4.6 x
  STM IM        STMicroelectronics NV            EUR          4.10        4,711          4,184    272.3 x        10.9 x          722        1,317           5.8 x         3.2 x


Other Communication ICs
  AVGO US       Avago Technologies Ltd           USD         33.52        8,025          7,077     12.7 x        11.3 x          833         937            8.5 x         7.6 x
  MRVL US       Marvell Technology Group Ltd     USD         13.10        7,347          5,144     10.6 x         8.8 x          783         964            6.6 x         5.3 x
  NUAN US       Nuance Communications Inc        USD         21.38        6,430          6,862     12.7 x        11.4 x          660         750          10.4 x          9.1 x
  SWKS US       Skyworks Solutions Inc           USD         26.11        4,866          4,566     13.7 x        12.2 x          407         495          11.2 x          9.2 x
  FSL US        Freescale Semiconductor Ltd      USD          9.86        2,393          8,218     22.1 x         6.6 x          919        1,162           8.9 x         7.1 x
  RFMD US       RF Micro Devices Inc             USD          3.59        1,030           882      19.6 x        11.6 x           96         162            9.2 x         5.5 x
  TQNT US       TriQuint Semiconductor Inc       USD          5.42          897           702    -443.3 x        17.3 x           66         137          10.6 x          5.1 x
  CSR LN        CSR PLC                          GBp        207.90          655           405      12.3 x         9.8 x           98         112            4.2 x         3.6 x
  ANAD US       ANADIGICS Inc                    USD          2.00          139            55      -2.8 x        -4.1 x          -43         -25           -1.3 x        -2.2 x
  SQNS US       Sequans Communications SA        USD          2.16           76            27      -3.0 x        -9.5 x          -22         -11           -1.2 x        -2.4 x


Memory
  6502 JP       Toshiba Corp                     JPY        303.00       16,264         34,876     10.2 x         8.0 x        6,679        7,379           5.2 x         4.7 x
  000660 KS     SK Hynix Inc                     KRW        22,400       13,199         15,267     62.8 x         8.4 x        3,179        4,558           4.8 x         3.3 x
  SNDK US       SanDisk Corp                     USD         32.92        7,914          4,070     16.5 x        10.4 x        1,001        1,349           4.1 x         3.0 x
  MU US         Micron Technology Inc            USD          5.75        5,720          7,309     -9.7 x         8.7 x        2,051        3,263           3.6 x         2.2 x

(continued on next page)

Sources: Bloomberg consensus estimates




27                                                                   BNP PARIBAS                                                                           24 MAY 2012
Smartphone Spotlight                                                                                                                                         Nitin Kumar



EXHIBIT 20: Consensus Valuation Metrics - Constituent Companies (continued)
Data as of May 23, 2012                                  ----- Market Valuation -----             -------------------- Bloomberg Consensus Estimates --------------------
                                                                        in USD millions              P/E Ratio              EBITDA ( USD mm)               EV / EBITDA
  Ticker        Name                             Crncy       Price     Mkt Cap     Entp Val      FY 2012e   FY 2013e        FY 2012e    FY 2013e       FY 2012e     FY 2013e

Display
  034220 KS     LG Display Co Ltd                KRW        20,400        6,257          9,655     14.9 x          8.6 x       4,261        4,799           2.3 x         2.0 x
  2409 TT       AU Optronics Corp                TWD         11.85        3,549          8,421     -4.1 x        57.4 x        1,947        2,623           4.3 x         3.2 x
  3673 TT       TPK Holding Co Ltd               TWD        407.50        3,203            Na       8.2 x          7.7 x         727         783
  3481 TT       Chimei Innolux Corp              TWD         12.15        2,977          9,921     -3.3 x        -20.4 x       2,059        2,762           4.8 x         3.6 x
  CY US         Cypress Semiconductor Corp       USD         12.94        1,973          1,909     15.1 x        10.4 x          140         235          13.6 x          8.1 x
  2384 TT       Wintek Corp                      TWD         16.70          935          1,395     27.0 x        15.3 x          319         332            4.4 x         4.2 x

Other ICs / Components
  6758 JP       Sony Corp                        JPY         1,096       13,969         14,917     23.8 x        10.9 x        6,391        7,244           2.3 x         2.1 x
  ALTR US       Altera Corp                      USD            34       10,902          7,926     19.6 x        15.5 x          675         882          11.7 x          9.0 x
  ADI US        Analog Devices Inc               USD            36       10,710          7,822     16.5 x        13.4 x          976        1,179           8.0 x         6.6 x
  6702 JP       Fujitsu Ltd                      JPY           348        9,117         12,459     10.3 x          8.7 x       4,066        4,303           3.1 x         2.9 x
  IFX GR        Infineon Technologies AG         EUR             6        8,517          5,947     14.3 x        11.6 x        1,281        1,529           4.6 x         3.9 x
  XLNX US       Xilinx Inc                       USD            32        8,326          7,323     15.8 x        13.7 x          768         903            9.5 x         8.1 x
  MXIM US       Maxim Integrated Products Inc    USD            25        7,346          6,722     16.8 x        13.7 x          778         890            8.6 x         7.6 x
  LLTC US       Linear Technology Corp           USD            29        6,692          6,379     15.4 x        12.9 x          640         775          10.0 x          8.2 x
  NXPI US       NXP Semiconductor NV             USD            22        5,446          9,144     12.1 x          7.8 x       1,160        1,404           7.9 x         6.5 x
  6963 JP       Rohm Co Ltd                      JPY         3,045        4,239          1,498     27.9 x        20.7 x          765         876            2.0 x         1.7 x
  LSI US        LSI Corp                         USD             7        3,914          3,291      8.8 x          8.1 x         502         586            6.6 x         5.6 x
  MOLX US       Molex Inc                        USD            23        3,826          3,460     14.7 x        13.3 x          651         704            5.3 x         4.9 x
  ONNN US       ON Semiconductor Corp            USD             7        2,997          3,320      9.7 x          6.6 x         574         743            5.8 x         4.5 x
  002241 CH     GoerTek Inc                      CNY            31        3,988          3,939     27.5 x        19.4 x          219         308          18.0 x         12.8 x
  6723 JP       Renesas Electronics Corp         JPY           263        1,407          3,036     -3.0 x        18.2 x          983        1,335           3.1 x         2.3 x
  3008 TT       Largan Precision Co Ltd          TWD           556        2,556          2,488     16.7 x        13.4 x          229                      10.9 x
  AVX US        AVX Corp                         USD            11        1,838          1,025     11.9 x        10.3 x          270         315            3.8 x         3.3 x
  3037 TT       Unimicron Technology Corp        TWD            29        1,482          1,618      9.4 x          7.6 x         460         525            3.5 x         3.1 x
  VSH US        Vishay Intertechnology Inc       USD            10        1,531          1,003      8.4 x          6.6 x         444         507            2.3 x         2.0 x
  FCS US        Fairchild Semiconductor Intern   USD            13        1,695          1,586     17.8 x        10.5 x          262         350            6.1 x         4.5 x
  SLAB US       Silicon Laboratories Inc         USD            34        1,458          1,124     16.8 x        14.9 x          124         132            9.1 x         8.5 x
  DLG GR        Dialog Semiconductor PLC         EUR            15        1,322          1,189     18.0 x        12.6 x          120         171            9.9 x         7.0 x
  CRUS US       Cirrus Logic Inc                 USD            28        1,748          1,566     16.1 x        13.6 x          124         190          12.6 x          8.2 x
  CAVM US       Cavium Inc                       USD            25        1,194          1,132     83.7 x        26.2 x           -3           39       -328.2 x         28.7 x
  IRF US        International Rectifier Corp     USD            19        1,278           935    -513.3 x        22.3 x           93         160          10.0 x          5.9 x
  8046 TT       Nan Ya Printed Circuit Board C   TWD            48        1,048           679      13.6 x          9.9 x         100         165            6.8 x         4.1 x
  ISIL US       Intersil Corp                    USD            11        1,345          1,131     21.6 x        12.5 x           95         151          11.9 x          7.5 x
  INVN US       InvenSense Inc                   USD            11          820           662      16.1 x        11.6 x           69         105            9.5 x         6.3 x
  DIOD US       Diodes Inc                       USD            19          875           766      19.8 x        12.2 x          118         163            6.5 x         4.7 x
  8008 TT       LITE-ON IT Corp                  TWD            28          864           653       8.4 x          7.6 x         200         212            3.3 x         3.1 x
  3406 TT       Genius Electronic Optical Co L   TWD           205          605           593      15.6 x        17.1 x
  6285 TT       Wistron NeWeb Corp               TWD            54          490           412       8.7 x          7.0 x
  3042 TT       TXC Corp                         TWD            43          427           485      11.1 x          9.5 x

Second Order Value Chain
  2330 TT       TSMC                             TWD         79.10       70,574         69,023     12.9 x        11.6 x
  GLW US        Corning Inc                      USD         12.77       19,456         15,862      9.5 x          8.5 x       2,591        2,911           6.1 x         5.4 x
  ASML NA       ASML Holding NV                  EUR         36.25       19,501         16,544     13.5 x        11.3 x        1,847        2,094           9.0 x         7.9 x
  AMAT US       Applied Materials Inc            USD         10.67       13,596         13,360     11.1 x          8.9 x       2,064        2,230           6.5 x         6.0 x
  8035 JP       Tokyo Electron Ltd               JPY         3,725        8,386          5,518     16.9 x        11.8 x        1,069        1,398           5.2 x         3.9 x
  2303 TT       United Microelectronics Corp     TWD         12.75        5,481          5,086     14.1 x        10.9 x        1,502        1,735           3.4 x         2.9 x
  2311 TT       Advanced Semiconductor Enginee   TWD         27.70        6,078          7,319     12.0 x          9.7 x
  5214 JP       Nippon Electric Glass Co Ltd     JPY           511        3,193          2,993     12.0 x        12.2 x        1,191        1,169           2.5 x         2.6 x
  3436 JP       Sumco Corp                       JPY           682        2,218          5,193     27.4 x          6.0 x         685         860            7.6 x         6.0 x
  PANL US       Universal Display Corp           USD         29.74        1,370          1,033     42.0 x        16.9 x           44         103          23.7 x         10.1 x
  AMKR US       Amkor Technology Inc             USD          4.53          766          1,747      6.5 x          5.1 x         620         308            2.8 x         5.7 x
  CCMP US       Cabot Microelectronics Corp      USD         33.01          767           786      15.9 x        12.1 x           95         120            8.3 x         6.6 x
  STAT SP       STATS ChipPAC Ltd                SGD          0.39          690          1,389
  HIMX US       Himax Technologies Inc           USD          2.04          354           312       7.2 x
  LTXC US       LTX-Credence Corp                USD          6.49          316           172     -18.3 x        10.8 x           -3           51        -52.1 x          3.4 x

Sources: Bloomberg consensus estimates




28                                                                   BNP PARIBAS                                                                           24 MAY 2012
Smartphone Spotlight                                                                                                                                          Nitin Kumar



Appendix 8: Consensus Sales Trends by Company

EXHIBIT 21: Consensus Sales Estimates and Trends - Constituent Companies
All Values are in USD millions, Data as of 5/23                    --------- Next Quarter (CQ2-2012) ---------              ------- Following Quarter (CQ3-2012) -------
Ordered by USD Market Cap                         Last Qtr   Bloomberg Consensus Est               QoQ % Sales           Bloomberg Consensus Est            QoQ % Sales
  Ticker         Name                              Sales     Current 4wk ∆%     12wk       CY12e      CY11       CY10    Current 4wk ∆%   12wk      CY12e      CY11       CY10
                                                                                 ∆                                                         ∆
Smartphone Vendors
  AAPL US        Apple Inc                        39,186     37,590      0.8     4.7        -4.1      15.8       16.3    38,636   -2.8    -0.5        2.8      -1.1       29.6
  005930 KS      Samsung Electronics Co Ltd       31,115                                               9.9        6.9
  NOK1V FH       Nokia OYJ                         9,645      9,718     -0.2    -12.7       0.8       -6.2       -3.3     9,764    0.2    -13.1       0.5      -5.0       4.2
  2498 TT        HTC Corp                          2,188      3,521     -0.7    -12.7       61.0      23.3       61.0     3,864   -6.7    -14.7       9.7       6.9       21.9
  066570 KS      LG Electronics Inc                5,516     12,296     21.2    21.2       122.9      12.8        3.9
  MMI US         Motorola Mobility Holdings Inc    3,078      3,196      2.0     2.0        3.8       10.1        5.2     3,273    1.0     0.6        2.4      -2.3       12.9
  000063 CH      ZTE Corp                          2,924      2,912      0.0                -0.4      -37.4      -24.2    4,043                      38.8      49.2       31.2
  RIM CN         Research In Motion Ltd            4,190      3,638     -1.0    -15.9      -13.2      -11.7       3.8     3,488   -1.2    -15.3      -4.1      -15.1      9.1
  40978Z CH      Huawei Technologies Co Ltd         Na


ODM / EMS Partners
  2317 TT        Hon Hai Precision Industry Co    26,603     29,114                         9.4       16.2       24.4    32,003                       9.9       3.9       28.9
  2038 HK        Foxconn International Holdings     Na
  JBL US         Jabil Circuit Inc                 4,236      4,311     -0.1    -0.9        1.8        7.6       15.0     4,508   -0.3    -1.2        4.6       1.2       11.7
  FLEX US        Flextronics International Ltd     6,382      6,096     -9.3    -9.7        -4.5      10.0       10.5     6,524   -8.5    -8.7        7.0       6.6       13.0
  4938 TT        Pegatron Corp                     3,909      5,944     30.7    30.7        52.1      26.5       -9.9     6,757   19.5    19.5       13.7      36.9       -6.3
  CLS CN         Celestica Inc                     1,691      1,706     -2.9    -3.0        0.9        1.6        4.4     1,790   -4.7    -5.0        5.0       0.0       -2.5
  COGO US        Cogo Group Inc                     169       176        6.7    21.9        3.6       28.9       12.3     182      2.3    16.1        3.4       8.8       10.1


Baseband / Application Processor
  005930 KS      Samsung Electronics Co Ltd       31,115
  QCOM US        QUALCOMM Inc                      4,943      4,685     -0.1    -1.7        -5.2      -6.4        1.4     4,979   -0.1    -1.2        6.3      13.6       9.3
  TXN US         Texas Instruments Inc             3,121      3,360      2.2    -1.0        7.7        1.9        9.1     3,594    1.4    -1.4        7.0       0.2       7.0
  BRCM US        Broadcom Corp                     1,827      1,955      1.9     3.4        7.0       -1.1        9.7     2,127    2.0     3.4        8.8       9.0       12.6
  2454 TT        MediaTek Inc                       386
  NVDA US        NVIDIA Corp                        925       1,016      3.6     3.4        9.8        5.7       -19.0    1,109    2.9     2.7        9.2       4.9       4.0
  STM IM         STMicroelectronics NV             2,010      2,130     -0.2     0.9        6.0        0.9        8.5     2,263   -1.7    -0.7        6.2      -6.0       5.1


Other Communication ICs
  AVGO US        Avago Technologies Ltd             577       601       -0.4    -0.9        4.2        7.7        6.8     638     -0.5    -0.5        6.1       3.3       4.0
  MRVL US        Marvell Technology Group Ltd       796       870        1.8     1.8        9.3       11.9        4.8     952      0.8     0.9        9.4       5.9       7.0
  NUAN US        Nuance Communications Inc          390       437        3.5     3.8        11.9       3.1        0.1     500      6.1     7.1       14.5      11.6       13.4
  SWKS US        Skyworks Solutions Inc             365       384        0.6     0.6        5.2        9.4       15.7     418     -0.1     0.8        9.1      13.0       13.8
  FSL US         Freescale Semiconductor Ltd        950       1,003      0.0    -1.5        5.5        2.4        8.6     1,067    0.0    -1.0        6.4      -6.6       3.6
  RFMD US        RF Micro Devices Inc               188       202       -0.2    -0.2        7.6        0.4        5.0     224     -0.4    -0.5       10.7      13.8       4.4
  TQNT US        TriQuint Semiconductor Inc         217       178      -21.3    -21.3      -18.0       2.0       14.7     207     -13.5   -13.5      16.6      -5.6       14.2
  CSR LN         CSR PLC                            227       250        1.2     1.3        10.1      18.3       27.6     271      0.2     0.4        8.3      25.5       0.6
  ANAD US        ANADIGICS Inc                      28         27      -11.9    -12.9       -3.3      -18.1      18.7      30     -14.6   -15.7      10.5       4.7       18.6
  SQNS US        Sequans Communications SA           4         6       -21.0    -21.0       55.8      20.5       63.5      9      -23.1   -23.1      44.4      -14.3      13.4


Memory
  6502 JP        Toshiba Corp                     22,036     16,838      0.8    -3.2       -23.6      -22.6      -25.6   19,861    0.0    -1.3       18.0      25.6       20.6
  000660 KS      SK Hynix Inc                      2,094      2,465      0.0    -12.1       17.7       6.6       15.1     2,576    0.0    -12.5       4.5      -19.0      -0.8
  SNDK US        SanDisk Corp                      1,206      1,029     -0.1    -28.9      -14.7       6.2        8.5     1,254   -0.2    -24.8      21.9       3.0       4.6
  MU US          Micron Technology Inc             2,009      2,030     -0.4    -4.3        1.1       -5.2       16.7     2,204   -0.4    -1.5        8.5       0.0       9.0

(continued on next page)

Sources: Bloomberg consensus estimates




29                                                                       BNP PARIBAS                                                                         24 MAY 2012
Smartphone Spotlight                                                                                                                                         Nitin Kumar



EXHIBIT 22: Consensus Sales Estimates and Trends - Constituent Companies (continued)
All Values are in USD millions, Data as of 5/23                  --------- Next Quarter (CQ2-2012) ---------              ------- Following Quarter (CQ3-2012) -------
Ordered by USD Market Cap                         Last Qtr   Bloomberg Consensus Est             QoQ % Sales           Bloomberg Consensus Est             QoQ % Sales
  Ticker         Name                              Sales     Current 4wk ∆%   12wk       CY12e      CY11       CY10    Current 4wk ∆%   12wk      CY12e       CY11       CY10
                                                                               ∆                                                         ∆
Display
  034220 KS      LG Display Co Ltd                 5,268
  2409 TT        AU Optronics Corp                 2,612      3,196   -2.2    -2.2        22.3       7.4       15.1     3,696   -0.9    -0.9       15.6       -0.8       -2.7
  3673 TT        TPK Holding Co Ltd                 Na                                                                  1,372   -14.5   -13.1       8.8
  3481 TT        Chimei Innolux Corp               3,612      4,090   -3.4    -6.6        13.2      -1.4       113.0    4,739   -3.4    -1.5       15.9        1.3       -6.3
  CY US          Cypress Semiconductor Corp         185       204      0.0    -8.8        10.4       9.4       10.3     230     -0.3    -8.8       12.6        3.8        4.0
  2384 TT        Wintek Corp                        966       778                        -19.5       1.0       73.4     600                        -22.9      14.9       52.2


Other ICs / Components
  6758 JP        Sony Corp                        20,194     20,134   -0.4     4.2        -0.3      -4.6       -4.6    21,729    1.5     5.9        7.9       10.6       12.0
  ALTR US        Altera Corp                        384       446     -0.3    -2.6        16.2       2.3       16.7     481      0.3    -1.3        7.8       -4.7       12.4
  ADI US         Analog Devices Inc                 675       693     -0.1    -0.2        2.6       -4.2        7.8     721     -0.2    -0.1        4.1       -5.5        6.9
  6702 JP        Fujitsu Ltd                      16,347     12,859   -2.2    -5.6       -21.3      -22.6      -23.4   14,063   -0.4    -1.7        9.4       17.8       12.8
  IFX GR         Infineon Technologies AG          1,293      1,263    0.9     2.3        -2.3      10.3        4.3     1,306    0.3     2.0        3.4       -2.3        8.1
  XLNX US        Xilinx Inc                         559       576      3.7     4.2        3.0        4.7       12.4     589      2.8     3.0        2.2       -9.8        4.2
  MXIM US        Maxim Integrated Products Inc      571       606      0.5     0.5        6.2        3.2       11.2     639      0.2     0.6        5.3        1.5       10.6
  LLTC US        Linear Technology Corp             312       331      0.0     0.8        6.1        1.5       17.6     344      0.0     1.7        3.8       -8.0        6.1
  NXPI US        NXP Semiconductor NV               978       1,055    4.7     7.1        7.8        3.6        3.1     1,123    5.2     8.0        6.4       -5.4        8.4
  6963 JP        Rohm Co Ltd                        890       947     -1.0    -1.4        6.4        2.9        7.6     1,019    0.1     2.7        7.6        8.9        9.1
  LSI US         LSI Corp                           622       648      4.4    12.4        4.1        5.8        0.2     670      3.0    10.3        3.3        9.2       -4.3
  MOLX US        Molex Inc                          837       886     -1.7    -1.5        5.9        4.5       12.0     924     -1.0    -1.2        4.2        2.4        5.9
  ONNN US        ON Semiconductor Corp              744       767     -1.8    -1.8        3.1        4.0        6.0     819     -2.0    -2.1        6.7       -0.9        3.0
  002241 CH      GoerTek Inc                        154       233                         51.1      42.1       87.8     385                        65.0       53.2       20.3
  6723 JP        Renesas Electronics Corp          2,646      2,525   -5.0    -11.8       -4.6      -24.1      118.2    2,772    1.9    -5.9        9.8       23.3        8.6
  3008 TT        Largan Precision Co Ltd            117
  AVX US         AVX Corp                           363       373      2.3     2.3        2.6        3.9        7.9     392      1.4     1.4        5.1       -7.3        8.6
  3037 TT        Unimicron Technology Corp          363       556     -1.8    -2.0        53.0       0.4       15.8     638      0.6     1.8       14.7       11.8        2.3
  VSH US         Vishay Intertechnology Inc         539       601      3.0     3.0        11.6       2.1        9.6     633      3.0     3.0        5.2       -10.2      -1.0
  FCS US         Fairchild Semiconductor Intern     352       371      0.0     3.2        5.3        4.9        8.4     392      0.0     2.9        5.5       -6.9        1.2
  SLAB US        Silicon Laboratories Inc           126       132      1.7     1.5        5.2        5.5        6.2     139      0.5     0.5        5.2       -5.6       -10.7
  DLG GR         Dialog Semiconductor PLC           166       168      2.3     2.2        1.2       17.9       12.1     189      1.6     1.0       12.2       21.1       16.1
  CRUS US        Cirrus Logic Inc                   111       101     -5.8    -6.0        -8.7       0.9       30.8     131      5.3     7.7       29.3       10.1       22.8
  CAVM US        Cavium Inc                         53         55     -2.8    -11.1       4.3       12.7       19.7      60     -4.3    -12.1       9.5       -5.4       10.7
  IRF US         International Rectifier Corp       248       265      1.5     2.9        6.7        6.9        9.1     282      0.6     2.4        6.7       -4.6        6.5
  8046 TT        Nan Ya Printed Circuit Board C     243       267     -3.2    -13.1       10.0      13.2       12.9     312     -5.0    -12.5      16.8       14.0        1.0
  ISIL US        Intersil Corp                      156       166     -1.6    -1.9        6.6        5.1       16.1     180     -1.5    -1.7        8.5       -10.7      -0.3
  INVN US        InvenSense Inc                     33         40     -3.2    -5.5        21.6      -12.2      -29.6     58     -1.6    -1.9       43.6       49.4       64.1
  DIOD US        Diodes Inc                         145       160      2.5     3.0        10.4       5.1        9.0     173      2.5     2.3        8.4       -5.4        9.4
  8008 TT        LITE-ON IT Corp                    318       504      0.0    -6.8        58.5      19.6       -1.5     604      0.0    -4.5       19.7        8.0       -7.1
  3406 TT        Genius Electronic Optical Co L     102        90      0.0     8.0       -11.1      39.8        5.4      99      0.0    12.3        9.2       20.8       150.7
  6285 TT        Wistron NeWeb Corp                 246       288                         17.1       0.6       34.3     325                        13.1       15.0       30.2
  3042 TT        TXC Corp                           71


Second Order Value Chain
  2330 TT        TSMC                              3,511
  GLW US         Corning Inc                       1,920      2,017    0.1     0.1        5.0        4.3       10.2     2,117    0.2     0.4        5.0        3.5       -6.4
  ASML NA        ASML Holding NV                   1,642      1,549    0.1     3.6        -5.7      10.6       32.6     1,562    0.2     3.8        0.8       -6.3       11.1
  AMAT US        Applied Materials Inc             2,541      2,437   -0.6    -2.0        -4.1      -2.6        9.7     2,367   -2.8    -5.1       -2.9       -21.7      14.6
  8035 JP        Tokyo Electron Ltd                2,241      1,641   -3.2    -21.9      -26.8      -19.0      -5.1     1,935   -2.8    -6.6       17.9       18.8       28.6
  2303 TT        United Microelectronics Corp       800       928      2.9     3.9        15.9       1.7       11.6     1,030    1.4     1.9       11.0       -11.5       9.5
  2311 TT        Advanced Semiconductor Enginee     544
  5214 JP        Nippon Electric Glass Co Ltd       926       1,006    0.0    -5.5        8.7        6.9        7.5     1,017   -16.6   -19.9       1.1       -2.8       -1.6
  3436 JP        Sumco Corp                         645       656                         1.7        3.3        7.6     756                        15.3        8.2       13.8
  PANL US        Universal Display Corp             13         27     -1.3    12.6       116.9      17.2       98.9      21     -5.5    -28.1      -24.0      93.5       -16.5
  AMKR US        Amkor Technology Inc               655       688     -0.1    -0.1        5.0        3.4       16.0     795      2.1     2.1       15.6        7.6        6.0
  CCMP US        Cabot Microelectronics Corp        99        116      0.0    -1.7        16.4       2.0        3.1     120      0.8    -4.8        3.9       -1.9        8.5
  STAT SP        STATS ChipPAC Ltd                  390
  HIMX US        Himax Technologies Inc             167
  LTXC US        LTX-Credence Corp                  31         43      0.0     0.0        37.9       6.8       30.5      51      0.0     0.0       19.9       -46.1       3.4

Sources: Bloomberg consensus estimates




30                                                                     BNP PARIBAS                                                                          24 MAY 2012
Smartphone Spotlight                                                                                                                                                       Nitin Kumar



Appendix 9: Gross Margin and Days of Inventory Trends by Company

EXHIBIT 23: Gross Margin and DOI Trends
 Data as of 5/23/12                                       Gross Margin (GM)                                            Days of Inventory (DOI)
                                       Last Quarter         Prior Quarter                                                             Last Quarter         Prior Quarter
 Sorted by USD Market Cap within
                                                                                    %Change in GM              % Change in DOI                                                BNPP Asia
 segment. Companies covered by BNPP
 Asia are highlighted in bold.        QoQ Chg                                 -25          0        25   -25           0         25                             QoQ Chg        Rating

                        AAPL US                                  Apple Inc                                                            Apple Inc
                        005930 KS                     Samsung Electronic                                                              Samsung Electronic                        BUY

                        NOK1V FH                                Nokia OYJ                                                             Nokia OYJ

                        2498 TT                                 HTC Corp                                                              HTC Corp                                 REDUCE

                        066570 KS                       LG Electronics Inc                                                            LG Electronics Inc                       REDUCE
     Smartphone
      Vendors           MMI US                         Motorola Mobility                                                              Motorola Mobility

                        RIM CN                         Research In Motion                                                             Research In Motion

                        2317 TT                        Hon Hai Precision                                                              Hon Hai Precision                         BUY

                        JBL US                            Jabil Circuit Inc                                                           Jabil Circuit Inc

                        FLEX US                         Flextronics Intern                                                            Flextronics Intern

                        4938 TT                            Pegatron Corp                                                              Pegatron Corp                             BUY
     ODM / EMS
                        CLS CN                               Celestica Inc                                                            Celestica Inc
      Partners
                        COGO US                           Cogo Group Inc                                                              Cogo Group Inc

                        005930 KS                     Samsung Electronic                                                              Samsung Electronic                        BUY

                        QCOM US                           QUALCOMM Inc                                                                QUALCOMM Inc

                        TXN US                         Texas Instruments                                                              Texas Instruments

                        BRCM US                           Broadcom Corp                                                               Broadcom Corp
     Baseband /
                        NVDA US                              NVIDIA Corp                                                              NVIDIA Corp
      App Proc.
                        STM IM                        STMicroelectronics                                                              STMicroelectronics

                        AVGO US                       Avago Technologies                                                              Avago Technologies

                        MRVL US                       Marvell Technology                                                              Marvell Technology

                        SWKS US                       Skyworks Solutions                                                              Skyworks Solutions

                        FSL US                        Freescale Semicond                                                              Freescale Semicond

                        RFMD US                         RF Micro Devices I                                                            RF Micro Devices I
     Other Comm         TQNT US                       TriQuint Semicondu                                                              TriQuint Semicondu
         ICs
                        CSR LN                                    CSR PLC                                                             CSR PLC

                        ANAD US                            ANADIGICS Inc                                                              ANADIGICS Inc

                        SQNS US                  Sequans Communicat                                                                   Sequans Communicat

                        6502 JP                             Toshiba Corp                                                              Toshiba Corp                              BUY

                        000660 KS                            SK Hynix Inc                                                             SK Hynix Inc                              BUY

                        SNDK US                             SanDisk Corp                                                              SanDisk Corp
       Memory                                         Micron Technology
                        MU US                                                                                                         Micron Technology

                        034220 KS                       LG Display Co Ltd                                                             LG Display Co Ltd                        REDUCE

                        2409 TT                        AU Optronics Corp                                                              AU Optronics Corp                        REDUCE

                        3673 TT                        TPK Holding Co Ltd                                                             TPK Holding Co Ltd                        BUY

                        3481 TT                        Chimei Innolux Cor                                                             Chimei Innolux Cor                       REDUCE

                        CY US                         Cypress Semiconduc                                                              Cypress Semiconduc
       Display
                        2384 TT                              Wintek Corp                                                              Wintek Corp                              REDUCE

(continued on next page)

Sources: Bloomberg




31                                                                                         BNP PARIBAS                                                                 24 MAY 2012
Smartphone Spotlight                                                                                                                                                   Nitin Kumar



EXHIBIT 24: Gross Margin and DOI Trends (continued)
Data as of 5/23/12                                       Gross Margin (GM)                                          Days of Inventory (DOI)
                                      Last Quarter        Prior Quarter                                                           Last Quarter         Prior Quarter
Sorted by USD Market Cap within
                                                                                                                                                                          BNPP Asia
segment. Companies covered by BNPP                                             % Change in GM                % Change in DOI
Asia are highlighted in bold.        QoQ Chg                                 -25        0       25   -50.0          0.0        50.0                        QoQ Chg         Rating

                       6758 JP                                 Sony Corp                                                          Sony Corp
                       ALTR US                                Altera Corp                                                         Altera Corp
                       ADI US                          Analog Devices Inc                                                         Analog Devices Inc
                       6702 JP                                Fujitsu Ltd                                                         Fujitsu Ltd
                       IFX GR                         Infineon Technolog                                                          Infineon Technolog
                       XLNX US                                  Xilinx Inc                                                        Xilinx Inc
                       MXIM US                        Maxim Integrated P                                                          Maxim Integrated P
                       LLTC US                        Linear Technology                                                           Linear Technology
                       NXPI US                       NXP Semiconductor                                                            NXP Semiconductor
                       6963 JP                               Rohm Co Ltd                                                          Rohm Co Ltd                               HOLD

                       LSI US                                    LSI Corp                                                         LSI Corp

      Other IC /       MOLX US                                  Molex Inc                                                         Molex Inc
     Components        ONNN US                       ON Semiconductor C                                                           ON Semiconductor C
                       002241 CH                             GoerTek Inc                                                          GoerTek Inc
                       6723 JP                         Renesas Electronic                                                         Renesas Electronic
                       3008 TT                         Largan Precision C                                                         Largan Precision C                       REDUCE

                       AVX US                                   AVX Corp                                                          AVX Corp

                       3037 TT                       Unimicron Technolo                                                           Unimicron Technolo

                       VSH US                          Vishay Intertechno                                                         Vishay Intertechno

                       FCS US                         Fairchild Semicond                                                          Fairchild Semicond

                       SLAB US                         Silicon Laboratori                                                         Silicon Laboratori

                       DLG GR                         Dialog Semiconduct                                                          Dialog Semiconduct

                       CRUS US                            Cirrus Logic Inc                                                        Cirrus Logic Inc

                       CAVM US                                Cavium Inc                                                          Cavium Inc

                       IRF US                          International Rect                                                         International Rect

                       8046 TT                         Nan Ya Printed Cir                                                         Nan Ya Printed Cir                       REDUCE

                       ISIL US                              Intersil Corp                                                         Intersil Corp

                       DIOD US                                 Diodes Inc                                                         Diodes Inc

                       8008 TT                           LITE-ON IT Corp                                                          LITE-ON IT Corp

                       3406 TT                         Genius Electronic                                                          Genius Electronic

                       6285 TT                       Wistron NeWeb Corp                                                           Wistron NeWeb Corp

                       3042 TT                                  TXC Corp                                                          TXC Corp

                       2330 TT                                     TSMC                                                           TSMC                                      BUY

                       GLW US                                 Corning Inc                                                         Corning Inc

                       ASML NA                          ASML Holding NV                                                           ASML Holding NV
     2
           1           AMAT US                         Applied Materials                                                          Applied Materials
     2
                       8035 JP                         Tokyo Electron Ltd                                                         Tokyo Electron Ltd                        BUY
     2     1
                       2303 TT                         United Microelectr                                                         United Microelectr                        HOLD
     Second Order      5214 JP                         Nippon Electric Gl                                                         Nippon Electric Gl                       REDUCE
      Value Chain
                       3436 JP                               Sumco Corp                                                           Sumco Corp

                       AMKR US                        Amkor Technology I                                                          Amkor Technology I

                       CCMP US                        Cabot Microelectro                                                          Cabot Microelectro

                       STAT SP                         STATS ChipPAC Ltd                                                          STATS ChipPAC Ltd

                       HIMX US                       Himax Technologies                                                           Himax Technologies

                       LTXC US                        LTX-Credence Corp                                                           LTX-Credence Corp


Sources: Bloomberg




32                                                                                     BNP PARIBAS                                                                24 MAY 2012
Smartphone Spotlight                                                                                                                     Nitin Kumar




Appendix 10: List of Asian Companies mentioned (BNPP Asia Tech coverage)

EXHIBIT 25: Asian companies mentioned in report

 Ticker          Name                           Analyst      Rating   Currency        Price   Link to Last Published Report
                                                                                 (cob 5/23)
 005930 KS       Samsung Electronics Co Ltd     Peter YU     BUY      KRW        1,221,000    Samsung Electronics – LTE fragmentation

 2498 TT         HTC Corp                       Laura CHEN   REDUCE   TWD           422.50    HTC Corp – Challenging outlook continues

 066570 K        LG Electronics Inc             Peter YU     REDUCE   KRW           65,200    LG Electronics – Trapped in 4G LTE hype

 2317 TT         Hon Hai Precision              Laura CHEN   HOLD     TWD            87.00    Hon Hai – Back-end loaded 2H recovery

 2454 TT         MediaTek Inc                   Laura CHEN   BUY      TWD           253.00    MEDIATEK - Lift smartphone shipment target

 3008 TT         Largan Precision Co Ltd        Laura CHEN   REDUCE   TWD           556.00    Largan Precision – Even worse than expected

 2330 TT         TSMC                           Szeho NG     BUY      TWD            79.10    TSMC – Record sales trek unfolding

 2303 TT         United Microelectronics Corp   Szeho NG     HOLD     TWD            12.75    UMC - Pull more rabbits out? Hard

 763 HK          ZTE Corp                       Alen LIN     BUY      HKD            15.69    Delayed full recovery




Sources: BNP Paribas Asia Technology Research




All prices are as of close of business in May 23, 2012. The equity ratings for the Asian companies
contained in this report were issued by BNP Paribas Securities (Asia) Ltd., a non-US affiliate of BNP
Paribas Securities Corp. Such ratings reflect the global ratings adopted by the BNP Paribas group as
described under “Stock Ratings” in the Disclosures section beginning on page 34. The analysts
responsible for such ratings are not registered / qualified pursuant to NYSE and/or FINRA regulations.

The reports listed above may be distributed in the United States only to U.S. Persons who are “major U.S.
institutional investors” (as such term is defined in Rule 15a-6 under the Securities Exchange Act of 1934,
as amended) and are not intended for the use of any person or entity that is not a “major U.S.
institutional investor”. U.S persons who wish to effect transactions in securities discussed in the reports
referred to above must do so through BNP Paribas Securities Corp., a US-registered broker dealer and
member of FINRA, SIPC, NFA, NYSE and other principal exchanges.




33                                                           BNP PARIBAS                                                                24 MAY 2012
Smartphone Spotlight                                                                                                                                  Nitin Kumar


Disclosures

ANALYST(S) CERTIFICATION
Nitin Kumar, BNP Paribas Securities Corp,+1 212 471 7963, nitin.x.kumar@us.bnpparibas.com.

The analyst(s) named in this report certifies that (i) all views expressed in this report accurately reflect the personal view of the
analyst(s) with regard to any and all of the subject securities, companies, or issuers mentioned in this report; (ii) no part of the
compensation of the analyst(s) was, is, or will be, directly or indirectly, relate to the specific recommendation or views expressed
herein; and (iii) is not aware of any other actual or material conflicts of interest concerning any of the subject securities companies, or
issuers referenced herein as of the time of this certification

IMPORTANT DISCLOSURES
The disclosure column in the following table lists the important disclosures applicable to each company that has been rated and/or
recommended in this report:

       Company                                      Ticker                     Disclosure (as applicable)
       QUALCOMM, Inc.                               QCOM                       4,5
       Broadcom Corporation                         BRCM                       NA
       Skyworks Solutions, Inc.                     SWKS                       NA
       RF Micro Devices, Inc.                       RFMD                       NA



BNP Paribas represents that:


1.   Within the last 12 months, it has managed or co-managed a public offering for this company, for which it received fees.
2.   Within the last 12 months, the company was a client of BNP Paribas and it has received compensation for investment banking
     related services.
3.   Within the next 3 months, it expects to receive compensation for investment banking services from this company.
4.   Within the last 12 months, the company was a client and it has received compensation for non-investment banking, securities-
     related services.
5.   Within the last 12 months, the company was a client and it has received compensation for non-investment banking, non-
     securities-related services.
6.   It is a market-maker in securities issued by this company or acts as a corporate broker or sponsor to this company.
7.   It beneficially owns 1% or more or the market capitalization of this company.
8.   The analyst(s) or an individual who assisted in the preparation of this report (or a member of his/her household) has a financial
     interest position in securities issued by this company or derivatives thereof.
9.   The analyst (or a member of his/her household) is an officer, director, or advisory board member of this company or has received
     compensation from the company.

Equity Analysts' Compensation: The equity research analysts responsible for the preparation of this report receive compensation
based upon various factors, including the quality and accuracy of research, client feedback, competitive factors, and overall firm
revenues, which include revenues from, among other business units, Global Equities and Commodity Derivatives and Investment
Banking.

RECOMMENDATION STRUCTURE
 Stock Ratings
 Stock ratings are based on absolute upside or downside, which we define as (target price* - current price) / current price.
 BUY (B). The upside is 10% or more.
 HOLD (H). The upside or downside is less than 10%.
 REDUCE (R)/ SELL (S). The downside is 10% or more.
 NOT RATED (NR). The company is not rated.


 Unless otherwise specified, these recommendations are set with a 12-month horizon. Thus, it is possible that future price volatility may cause a
 temporary mismatch between upside/downside for a stock based on market price and the formal recommendation.

 *In most cases, the target price will equal the analyst's assessment of the current fair value of the stock. However, if the analyst doesn't think the
 market will reassess the stock over the specified time horizon due to a lack of events or catalysts, then the target price may differ from fair value. In
 most cases, therefore, our recommendation is an assessment of the mismatch between current market price and our assessment of current fair value.


 Industry recommendations
 Improving ( ): The analyst expects the fundamental conditions of the sector to be positive over the next 12 months
 Neutral (       ): The analyst expects the fundamental conditions of the sector to be maintained over the next 12 months
 Deteriorating ( ): The analyst expects the fundamental conditions of the sector to be negative over the next 12 months



34                                                                        BNP PARIBAS                                                                24 MAY 2012
Smartphone Spotlight                                                                                                                          Nitin Kumar




RATING DISTRIBUTION (as at April 2, 2012)


 Total BNP Paribas coverage universe                               595          Investment Banking Relationship                         (%)

 Buy                                                                 5                                     Buy                         20.0

 Hold                                                                6                                    Hold                         83.3

 Reduce                                                              1                                  Reduce                       100.00


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35                                                                       BNP PARIBAS                                                          24 MAY 2012
Smartphone Spotlight                                                                                                                            Nitin Kumar

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BNP Paribas is incorporated in France with limited liability with its registered office is at 16 boulevard des Italiens, 75009 Paris. BNP
Paribas Securities Corp. is a subsidiary of BNP Paribas, a U.S. registered broker-dealer and a member of SIPC, FINRA, NFA, NYSE and
other principal exchanges. BNP Paribas Securities Corp. primary office is located at 787 Seventh Avenue, New York, NY 10019.

Clients should contact and execute transactions through a BNP Paribas entity in their home jurisdiction unless governing law permits
otherwise.

Should you require additional information concerning this report please contact your BNP Paribas sales representative, the relevant
BNP Paribas research team or the author(s) of this report.

© BNP Paribas (2012). All rights reserved.




36                                                                        BNP PARIBAS                                                           24 MAY 2012

				
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