EQUITY RESEARCH 26 May 2012

INDUSTRY UPDATE THE ASIA PC PULSE (ISSUE NO. 37) Asia ex-Japan IT Hardware European demand concerns start to show 2-NEUTRAL Unchanged up in the PC supply chain, but not much yet Asia ex-Japan IT Hardware Kirk Yang Slightly cut May and 2Q12 NB shipment forecasts: While shipment forecasts of +852 290 34635 Pegatron, Inventec, and Quanta remain unchanged, we see some potential order delays [email protected] for Compal and Wistron, and therefore revise down our NB shipments forecast for May Barclays Bank, Hong Kong to up 14% m/m from up 16% (5-year average: down 1% m/m). We also slightly revise Jerry Wu down our 2Q12 NB shipment forecast to up 8% q/q from 9%, as some ODMs are +8862 6638 4685 moving toward the low-end of their 2Q12 guidance range, but still better than normal [email protected] seasonality of up 6%. BCSTW, Taiwan

Slightly cut May and 2Q12 DT/MB shipment forecasts: Similar to the NB shipments Wayne Dong trend, we also revise down May DT/MB shipments to up 12% m/m from up 14% (5- +8862 6638 4696 year average: down 2% m/m) on end-demand concerns, which results in our 2Q12 [email protected] BCSTW, Taiwan DT/MB shipments forecast moving to up 8% q/q from 9%, still higher than normal seasonality of down 4% q/q. We believe demand in emerging markets and China Richard Cheng remains solid, but with uncertainties in the US and Europe. +852 290 34582 [email protected] Top 4 global brand PC companies all suggest European weakness this week: HP, Barclays Bank, Hong Kong Lenovo, and Dell reported results this week (please click here for reports on HP, Lenovo, and Dell), and all with a consistent message, that demand in Europe is slowing down – consumer segment for HP, corporate segment for Lenovo, and public sector for Dell.

The feedback from Acer’s NDR this week also suggests a similar trend (click here for the report). Although none of the brand PC companies are cutting down their current quarter guidance, their ODM suppliers are becoming more cautious to avoid and anticipate any potential excess inventory, especially toward the end of 2Q12 into 3Q12.

Expect Computex (June 5-9) to be the next catalyst: Unlike the previous few years, we expect this year’s Computex to generate more excitement (similar to 2007 when netbooks were first introduced), as we will for the first time be able to see actual working PCs running on Windows 8 (preview version), in addition to various models of ultrabooks running Intel’s Ivy Bridge CPU. We also expect to see various cloud computing strategies from different PC companies (e.g. Acer Cloud), with better convergence devices. We continue to like Asia brand PC companies on their market share gains and strong 2H12 outlook, with Lenovo (1-OW) and Asustek (1-OW) our top picks. We also like Quanta (1-OW), which will make the next generation of Apple MacBook Pro/Air likely to be announced at WWDC in June.

Barclays Capital Inc. and/or one of its affiliates does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. This research report has been prepared in whole or in part by equity research analysts based outside the US who are not registered/qualified as research analysts with FINRA. PLEASE SEE ANALYST(S) CERTIFICATION(S) AND IMPORTANT DISCLOSURES BEGINNING ON PAGE 51. Barclays | The Asia PC Pulse (Issue No. 37)

CONTENTS

THE ASIA PC PULSE ...... 3 Barclays Asia PC Pulse – Week of 25 May (Issue No. 37)...... 3 Slightly revise down 2Q12 forecast for NBs and DTs/MBs with some noise ahead ...... 3

COMPANY SNAPSHOTS...... 12 Compal (2-Equal Weight; PT NT$33)...... 12 Quanta (1-Overweight; PT: NT$92)...... 13 Wistron (2-Equal Weight; PT: NT$42)...... 14 Inventec (3-Underweight; PT NT$10) ...... 15 Pegatron (1-Overweight; PT NT$54)...... 16 Gigabyte (2376 TT, not rated) ...... 17 Elitegroup (2331 TT, not rated) ...... 18 Microstar (2377 TT, not rated) ...... 19

APPENDIX I: NOTEBOOK, DESKTOP, TABLET PCS AND SERVERS...... 20

APPENDIX II: SMARTPHONES...... 33

APPENDIX III: INTEL MICROPROCESSOR ROADMAP...... 37

APPENDIX IV: CUSTOMER-SUPPLIER SALES MATRIX (2012E)...... 38

APPENDIX V: APPLE BUYER/SUPPLIER MATRIX...... 39

APPENDIX VI: TAIWAN SUPPLY CHAIN CONCEPT STOCKS...... 40

APPENDIX VII: BILLS OF MATERIALS ...... 41

APPENDIX VIII: CHINA MANUFACTURING MAPS ...... 43

APPENDIX IX: LCD TV BUYER/SUPPLIER MATRIX, 2012E ...... 46

APPENDIX X: LCD TV PANEL SUPPLY CHAIN MATRIX, 2012E...... 47

APPENDIX XI: ASIA EX-JAPAN TECHNOLOGY CAPEX 2009-2013E ...... 48

APPENDIX XII: ASIA EX-JAPAN TECHNOLOGY COMPARATIVE VALUATIONS ...... 49

APPENDIX XII: ASIA EX-JAPAN TECHNOLOGY COMPARATIVE VALUATIONS (CONT’D)..50

26 May 2012 2 Barclays | The Asia PC Pulse (Issue No. 37)

THE ASIA PC PULSE

Barclays Asia PC Pulse – Week of 25 May (Issue No. 37)

Our “Asia PC Pulse” report tracks shipments from the top-five NB and top-four motherboard companies in Asia – as Asia makes around 90% of global NBs and desktop PC MBs. While the data we track are for “sell-in”, we believe they provide a good proxy for “sell-through”, as inventory, which we also monitor, usually remains stable under normal conditions.

Slightly revise down 2Q12 forecast for NBs and DTs/MBs with some noise ahead

NBs: ODMs see order push-outs; trim 2Q12 forecast to up 8% q/q from 9% Trim May NB shipment growth to up 14% m/m from +16% due to some order push-outs For the month of May, we trim our May ODM NB shipment forecast to grow by 14% m/m (previously 16%) as we see some order push-out into June. This is still much higher than the 5-year average of down 1%. Although our channel checks suggest major OEM players might stay with their previous May shipment target – HP looks for +60% m/m and Acer looks for +50% m/m, the supply chain might seem to be more conservative for now. By company, we maintain Quanta’s May NB shipment forecast to grow 18% m/m to 4.7mn units, in line with market expectation. This is mainly due to aggressive pull-in from MacBook refresh models. Our checks also indicate that MacBook Air shipment might ramp up by over 80% m/m starting May. On the other hand, we cut Wistron’s May NB shipment to grow by 4% m/m to 2.6mn units (previously 2.8mn), mainly due to order push-outs. Separately, we expect Compal and Inventec’s NB shipments to outperform in the month, due to their larger exposure to Acer and HP. Yet, we see Pegatron’s May momentum being much slower than the industry average due to a very high base in April.

Expect June NBs to grow by 8% m/m within mixed guidance of OEMs Our latest channel checks imply that OEM players are maintaining May shipment targets which indicate a significant rebound, while staying cautious on forecasts in the coming months. We see major names HP and Acer’s NB shipment guidance to be flattish or slightly down m/m into June. With regard to the other big names, Asustek and Lenovo, the biggest outperformers among non Apple brands, their rolling forecast still looks unchanged in May/June. Our checks suggest that Asustek and Lenovo will gradually grow shipments into June, compared to their more conservative peers. In other words, although none of the brand PC companies are cutting their current quarter guidance, their ODM suppliers are becoming more cautious to avoid and anticipate any potential excess inventory, especially toward the end of 2Q12 and into 3Q12. Consequently, we expect June NB shipments to grow by 8% m/m, lower than the seasonal trend of up 11% m/m.

Slightly revise down 2Q12 NB shipment growth to 8% q/q from 9% due to near- term noise; still better than normal seasonality of up 6% For 2Q12, our recent checks suggest that top 3 ODMs Quanta, Compal and Wistron will slightly lower their expectation toward the low end of their previous guidance range. We think 2Q12 NB shipments are built to fulfil the low level inventory coupled with some backlog due to HDD shortage at the beginning of this year. However, we note that the

26 May 2012 3 Barclays | The Asia PC Pulse (Issue No. 37)

overall supply chain is more cautious on the coming 2H12 as some noise from order cuts and push-outs has been seen lately. The supply chain also suggests that China demand remains solid since 1Q12 and the European market, on the contrary, seems to be weaker- than-expected given the rising debt issue in the month. Given the mixed guidance and the near-term uncertainty, we slightly revise down our forecast for 2Q12 NB shipments at +8% q/q (previously +9%). We see this is still better than normal seasonality of +6% q/q. By company, we expect Pegatron and Compal’s shipments to outperform in 2Q12, aided by the market share gains and a lower base in the last quarter. On the other hand, we expect Quanta, Wistron and Inventec’s NB shipments all to be below the industry average of +8% q/q. Heading into 2H12, we expect to see the key growth drivers as: 1) the new CPU launch from Intel; 2) ultrabook launches from OEM companies; 3) NB model refresh (MacBook Pro/Air) from Apple; and 4) Windows 8 launch from Microsoft. However, we also highlight two potential downside risks for coming quarters, namely: 1) PC demand would hold back if worldwide macro issues widen and worsen; and 2) the cheaper iPad Mini launch from Apple in 3Q12, which could cannibalise NB demand again in the year.

Solid results from HP and Lenovo offset concerns from Dell The top 3 global PC companies, HP, Lenovo, and Dell, all reported results this week. The consistent message is that economic weakness is negatively affecting PC demand in Europe, especially in the public sector for Dell, consumer sector for HP, and enterprise sector for Lenovo. On the other hand, China and emerging market demand remains solid. Another clear message is that Asia brand PC companies continue to gain market shares in the low- growth environment, as the 3-5% OP margin dilutes US PC companies’ corporate margins (usually around 7-10%), but remains attractive for Asia companies. According to IDC, global PC shipments were up 3.7% y/y and HP was up 3.1% as Dell was down 2.1% in 1Q12, lower than Lenovo (+44%) and Asustek (+27%). We expect both Lenovo and Asustek to continue to show strong growth momentum in the current quarter, while Acer starts to take share in 2H12 after its operation resumes normal. While the market might view Dell’s results as negative for the PC industry, we continue to believe Asia brand PC companies will gradually take over the territory where non-Asia PC companies are walking away.

DTs/MBs: US/Europe market remain sluggish; trim 2Q12 forecast to up 8% q/q from 9% Trim May DT/MB shipment growth to 12% m/m from +14% due to the languid US/Europe demand For May, we expect DT/MB shipments to see a material improvement, mostly due to a low base in April. However, the recent checks indicate that US/Europe DT/MB market remains sluggish, even though new Ivy Bridge MBs were being massively shipped. Accordingly, we trim DT/MB shipments growth to 12% m/m from 14%, still much better than the seasonal trend of down 2%. By company, we slightly revise down Gigabyte’s May MB/DT shipments to grow by 23% to 1.6mn units (previously 1.67mn), which is the biggest outperformer among MB peers. This is mainly due to its April shipment being recognised into May. We expect Pegatron’s May MB/DT shipments to remain flat, primarily due to market share loss. Our checks indicate Pegatron’s main customer Asustek began to shift orders to Cal-comp this year as Pegatron is more selective on order margins.

26 May 2012 4 Barclays | The Asia PC Pulse (Issue No. 37)

Slightly revise down 2Q12 DT/MB shipment growth to 8% q/q from 9%; still better than normal seasonality of down 4% Looking ahead to June, the upside potential we expect to see includes 1) Computex Taipei could boost retail demand for new Intel platform; and 2) China DT/MB demand could see recovery upon the release of low-priced i3 CPUs. As such, we expect DT/MB shipments to continue to grow by 10% m/m, above the seasonal trend of up 7% m/m. For 2Q12, we slightly revise down 2Q12 DT/MB shipment growth to 8% q/q from 9%; still better than normal seasonality of down 4%. By company, we expect Elitegroup to see the strongest growth of up 27% q/q, partly helped by market share from other EMS peers. Separately, Pegatron should see the worse-than-expected performance in coming months. Microstar should be about in line with the industry average in 2Q12.

Expect more excitement at Computex this year As the most important industry trade show focusing on PC-related products (CeBIT is more European-focused, MWC is more handset-related, while CES is more for consumer electronics products, such as TVs), we expect more excitement this year at the Computex from 5-9 June in Taipei (the last time was the netbook introduction in 2007), and we expect to see PCs running Windows 8 (preview version) for the very first time with Intel’s Ivy Bridge CPU. While Apple’s products and ecosystem continue to put pressure on the traditional “Wintel” platforms, we believe Windows 8, for the first time providing consistent user experience across various hardware platforms, from 3.5” to 80”, could finally generate some excitement for the PC industry. This is in addition to the thinner, lighter, faster-performance and longer-battery ultrabooks, which should become much more attractive if prices are cut to the US$699-799 range that our channel checks suggest in 2H12E, after a heavy marketing campaign by Microsoft and Intel.

26 May 2012 5 Barclays | The Asia PC Pulse (Issue No. 37)

Figure 1: Taiwan tier-one NB shipments

’000s 1Q11 2Q11 3Q11 Oct 11 Nov 11 Dec 11 4Q11 2011 Jan 12 Feb 12 Mar 12 1Q12 Apr 12 May 12E Jun 12E 2Q12E

Quanta 13,100 14,300 14,500 5,300 4,400 4,200 13,900 55,800 3,800 4,500 4,900 13,200 4,000 4,700 5,100 13,800 MoM/QoQ % -9% 9% 1% 6% -17% -5% -4% -10% 18% 9% -5% -18% 18% 9% 5% YoY % 19% 4% 12% 18% -10% -16% -3% 7% -10% 41% -14% 1% -13% 0% 2% -3% Compal 10,350 10,200 9,850 3,200 3,000 2,650 8,850 39,250 2,100 2,900 3,100 8,100 2,750 3,450 3,600 9,800 MoM/QoQ % -12% -1% -3% -6% -6% -12% -10% -21% 38% 7% -8% -11% 25% 4% 21% YoY % -18% -17% -15% -26% -21% -26% -25% -19% -37% 7% -28% -22% -19% 1% 6% -4% Wistron 6,600 7,450 8,100 3,100 3,100 3,200 9,400 31,550 2,400 2,700 3,400 8,500 2,500 2,600 3,100 8,200 MoM/QoQ % -10% 13% 9% -3% 0% 3% 16% -25% 13% 26% -10% -26% 4% 19% -4% YoY % 3% 11% 15% 32% 29% 23% 28% 15% 7% 54% 31% 29% 14% 6% 11% 10% Inventec 3,600 3,850 4,300 1,450 1,200 1,350 4,000 15,750 1,450 1,500 1,500 4,450 1,000 1,600 1,700 4,300 MoM/QoQ % -10% 7% 12% -6% -17% 13% -7% 7% 3% 0% 11% -33% 60% 6% -3% YoY % -10% -7% 8% 12% -14% 4% 0% -2% 12% 50% 15% 24% -17% 33% 17% 12% Pegatron 2,650 3,025 4,325 1,625 1,550 1,150 4,325 14,325 900 1,225 1,350 3,475 1,850 1,400 1,400 4,650 MoM/QoQ % -27% 14% 43% 12% -5% -26% 0% -22% 36% 10% -20% 37% -24% 0% 34% YoY % -35% -19% 12% 12% 24% 21% 18% -7% -14% 145% 23% 31% 85% 51% 27% 54% Total 1st Tier 36,300 38,825 41,075 14,675 13,250 12,550 40,475 156,675 10,650 12,825 14,250 37,725 12,100 13,750 14,900 40,750 MoM/QoQ % -12% 7% 6% 1% -10% -5% -1% -15% 20% 11% -7% -15% 14% 8% 8% YoY % -5% -4% 4% 5% -4% -7% -2% -2% -12% 40% -5% 4% -2% 8% 8% 5% Seasonality MoM/QoQ % -8% 5% 25% 4% 0% -9% 14% -9% -8% 33% -9% -9% -1% 11% 6% Source: Company data, Barclays Research estimates

Figure 2: Taiwan tier-one MB shipments

’000s 1Q11 2Q11 3Q11 Oct 11 Nov 11 Dec 11 4Q11 2011 Jan 12 Feb 12 Mar 12 1Q12 Apr 12 May 12E Jun 12E 2Q12E

Pegatron 4,575 6,625 6,850 2,050 1,780 1,275 5,105 23,155 900 1,325 1,600 3,825 1,200 1,250 1,250 3,700 MoM/QoQ % -4% 45% 3% -5% -13% -28% -25% -29% 47% 21% -25% -25% 4% 0% -3% YoY % -16% 22% 47% 52% 8% -27% 7% 14% -45% 26% -16% -16% -41% -44% -47% -44% Gigabyte 5,150 4,625 5,100 1,250 1,250 1,300 3,800 18,675 1,425 1,550 1,600 4,575 1,300 1,600 1,750 4,650 MoM/QoQ % 9% -10% 10% -28% 0% 4% -25% 10% 9% 3% 20% -19% 23% 9% 2% YoY % 1% 13% -2% -12% -29% -16% -20% -2% -23% 7% -14% -11% -20% 14% 9% 1% Elitegroup 3,900 4,725 4,550 1,400 1,625 1,425 4,450 17,625 1,100 1,250 1,500 3,850 1,475 1,650 1,750 4,875 MoM/QoQ % -11% 21% -4% -19% 16% -12% -2% -23% 14% 20% -13% -2% 12% 6% 27% YoY % -5% 6% 1% -4% 16% -5% 2% 1% -19% 19% 0% -1% -5% 2% 13% 3% Microstar 4,550 3,650 3,750 950 950 950 2,850 14,800 950 850 950 2,750 850 900 1,200 2,950 MoM/QoQ % 10% -20% 3% -24% 0% 0% -24% 0% -11% 12% -4% -11% 6% 33% 7% YoY % 7% 11% -3% -24% -30% -39% -31% -5% -34% -26% -51% -40% -37% -22% 4% -19% Total 1st Tier 18,175 19,625 20,250 5,650 5,605 4,950 16,205 74,255 4,375 4,975 5,650 15,000 4,825 5,400 5,950 16,175 MoM/QoQ % 1% 8% 3% -18% -1% -12% -20% -12% 14% 14% -7% -15% 12% 10% 8% YoY % -4% 13% 11% 3% -9% -22% -10% 3% -30% 6% -22% -17% -26% -16% -11% -18% Seasonality MoM/QoQ % -7% -6% 11% -10% -4% -5% -5% 3% -15% 29% -4% -12% -2% 7% -4% Source: Company data, Barclays Research estimates

26 May 2012 6 Barclays | The Asia PC Pulse (Issue No. 37)

Figure 3: 1Q12 NB shipments forecast revision trend

38,000 '000 units 0% -2% 37,000 -4% 36,000 -6% 35,000 -8% -10% 34,000 -12% 33,000 -14% 32,000 -16% 11/30/11 12/10/11 1/3/12 1/10/12 1/31/12 2/10/12 3/9/12 3/28/12 4/10/12

Total 1st tier NB shipments, 1Q12 Q/Q (%)

Source: Barclays Research estimates

Figure 4: 1Q12 DT/MB shipments forecast revision trend

16,200 '000 units 0% 16,000 -1% 15,800 -2% 15,600 -3% 15,400 -4% 15,200 -5% 15,000 14,800 -6% 14,600 -7% 14,400 -8% 14,200 -9% 11/30/11 12/9/11 1/3/12 1/10/12 1/31/12 2/10/12 3/9/12 3/28/12 4/10/12

Total 1st tier DT/MB shipments, 1Q12 Q/Q (%)

Source: Barclays Research estimates

Figure 5: 2Q12 NB shipments forecast revision trend Figure 6: 2Q12 DT/MB shipments forecast revision trend

41,500 '000 units 9.5% 16,500 '000 units 9.5% 16,400 41,000 9.0% 9.0% 16,300 8.5% 40,500 16,200 8.5% 16,100 8.0% 40,000 8.0% 16,000 7.5% 39,500 15,900 7.0% 15,800 39,000 7.5% 15,700 6.5% 38,500 7.0% 15,600 6.0% 3/9/12 3/28/124/10/125/6/125/10/125/24/12 3/9/12 4/10/12 5/10/12

Total 1st tier NB shipments, 2Q12 Q/Q ( %) Total 1st tier DT/MB shipments, 2Q12 Q/Q (%)

Source: Barclays Research estimates Source: Barclays Research estimates

26 May 2012 7 Barclays | The Asia PC Pulse (Issue No. 37)

Figure 7: NBs – 1Q shipment growth, q/q Figure 8: NBs – 1Q shipment growth, y/y

0% 60% 50% -5% 40% -10% 30%

-15% 20% 10% -20% 0% -25% -10% 2007 2008 2009 2010 2011 07-11 2012 2007 2008 2009 2010 2011 07-11 2012 av g. * av g. *

Note: Data for tier-one Taiwan suppliers incl. in Fig 1. ’07-’11 avg. w/o outlier. Note: Data for tier-one Taiwan suppliers incl. in Fig 1. ’07-’11 avg. w/o outlier. Source: Company data, Barclays Research estimates Source: Company data, Barclays Research estimates

Figure 9: NBs – 2Q shipment growth, q/q Figure 10: NBs – 2Q shipment growth, y/y

18% 50% 16% 40% 14% 12% 30% 10% 20% 8% 6% 10% 4% 0% 2% 0% -10% 2007 2008 2009 2010 2011 07-11 2012E 2007 2008 2009 2010 2011 07-11 2012E avg. * av g. *

Note: Data for tier-one Taiwan suppliers incl. in Fig 1. ’07-’11 avg. w/o outlier. Note: Data for tier-one Taiwan suppliers incl. in Fig 1. ’07-’11 avg. w/o outlier. Source: Company data, Barclays Research estimates Source: Company data, Barclays Research estimates

Figure 11: NBs – 3Q shipment growth, q/q Figure 12: NBs – 3Q shipment growth, y/y

30% 60%

25% 50% 20% 40% 15% 30% 10% 20% 5%

0% 10%

-5% 0% 2006 2007 2008 2009 2010 06-10 2011 2006 2007 2008 2009 2010 06-10 2011 avg. * avg. *

Note: Data for tier-one Taiwan suppliers incl. in Fig 1. ’06-’10 avg. w/o outlier. Note: Data for tier-one Taiwan suppliers incl. in Fig 1. ’06-’10 avg. w/o outlier. Source: Company data, Barclays Research estimates Source: Company data, Barclays Research estimates

26 May 2012 8 Barclays | The Asia PC Pulse (Issue No. 37)

Figure 13: NBs – 4Q shipment growth, q/q Figure 14: NBs – 4Q shipment growth, y/y

30% 50% 25% 40% 20% 30% 15% 20% 10% 10% 5% 0% 0% -5% -10% 2006 2007 2008 2009 2010 06-10 2011 2006 2007 2008 2009 2010 06-10 2011 avg. * av g. *

Note: Data for tier-one Taiwan suppliers incl. in Fig 1. ’06-’10 avg. w/o outlier. Note: Data for tier-one Taiwan suppliers incl. in Fig 1. ’06-’10 avg. w/o outlier. Source: Company data, Barclays Research estimates Source: Company data, Barclays Research estimates

Figure 15: MBs – 1Q shipment growth, q/q Figure 16: MBs – 1Q shipment growth, y/y

5% 30% 20% 0% 10% -5% 0%

-10% -10% -20% -15% -30% -20% -40% 2007 2008 2009 2010 2011 07-11 2012 2007 2008 2009 2010 2011 07-11 2012 av g. * av g. *

Note: Data for tier-one Taiwan suppliers incl. in Fig 2. ’07-’11 avg. w/o outlier. Note: Data for tier-one Taiwan suppliers incl. in Fig 2. ’07-’11 avg. w/o outlier. Source: Company data, Barclays Research estimates Source: Company data, Barclays Research estimates

Figure 17: MBs – 2Q shipment growth, q/q Figure 18: MBs – 2Q shipment growth, y/y

12% 20% 10% 15% 8% 10% 6% 4% 5% 2% 0% 0% -5% -2% -10% -4% -15% -6% -8% -20% -10% -25% 2007 2008 2009 2010 2011 07-11 2012E 2007 2008 2009 2010 2011 07-11 2012E av g. * av g. *

Note: Data for tier-one Taiwan suppliers incl. in Fig 2. ’07-’11 avg. w/o outlier. Note: Data for tier-one Taiwan suppliers incl. in Fig 2. ’07-’11 avg. w/o outlier. Source: Company data, Barclays Research estimates Source: Company data, Barclays Research estimates

26 May 2012 9 Barclays | The Asia PC Pulse (Issue No. 37)

Figure 19: MBs – 3Q shipment growth, q/q Figure 20: MBs – 3Q shipment growth, y/y

18% 15% 16% 10% 14% 5% 12% 0% 10% -5% 8% -10% 6% 4% -15% 2% -20% 0% -25% 2006 2007 2008 2009 2010 06-10 2011 2006 2007 2008 2009 2010 06-10 2011 avg. * avg. *

Note: Data for tier-one Taiwan suppliers incl. in Fig 2. ’06-’10 avg. w/o outlier. Note: Data for tier-one Taiwan suppliers incl. in Fig 2. ’06-’10 avg. w/o outlier. Source: Company data, Barclays Research estimates Source: Company data, Barclays Research estimates

Figure 21: MBs – 4Q shipment growth, q/q Figure 22: MBs – 4Q shipment growth, y/y

0% 20% -5% 10% 0% -10% -10% -15% -20% -20% -30% -25% -40% -30% -50% 2006 2007 2008 2009 2010 06-10 2011 2006 2007 2008 2009 2010 06-10 2011 av g. * av g. *

Note: Data for tier-one Taiwan suppliers incl. in Fig 2. ’06-’10 avg. w/o outlier. Note: Data for tier-one Taiwan suppliers incl. in Fig 2. ’06-’10 avg. w/o outlier. Source: Company data, Barclays Research estimates Source: Company data, Barclays Research estimates

26 May 2012 10 Barclays | The Asia PC Pulse (Issue No. 37)

Figure 23: NBs – 2001-10 shipment growth, q/q Figure 24: NBs – 2001-10 shipment growth, y/y

Total 1st Tier Total 1st Tier QoQ 1Q 2Q 3Q 4Q YoY 1Q 2Q 3Q 4Q 2002 -10.6% 12.0% 4.4% 27.9% 2002 40.5% 28.3% 36.0% 33.8% 2003 -7.2% 6.9% 36.1% 15.2% 2003 38.9% 32.6% 72.9% 55.7% 2004 -17.2% 13.9% 19.9% 19.4% 2004 38.9% 47.8% 30.1% 34.9% 2005 -9.5% 17.5% 20.3% 14.4% 2005 47.5% 52.2% 52.7% 46.2% 2006 -8.8% 3.0% 21.7% 25.0% 2006 47.4% 29.3% 30.8% 43.0% 2007 -10.6% 7.3% 26.2% 13.7% 2007 40.1% 45.9% 51.4% 37.6% 2008 -3.9% 4.6% 25.2% 0.1%* 2008 47.9% 44.3% 43.1% 26.0% 2009 -21.0%* 17.1%* 27.0% 13.0% 2009 3.6%* 16.0%* 17.6% 32.7% 2010 -9.7% 6.7% -2.6%* 4.0% 2010 51.7% 38.1% 6.0%* -2.4%* 2011 -11.8% 7.0% 5.8% -1.5% 2011 -4.6% -4.4% 3.9% -1.6% 06-10 avg. * -8.2% 5.4% 25.0% 13.9% 06-10 avg. * 46.8% 39.4% 35.7% 34.8% 07-11 avg. * -9.0% 6.4% 21.1% 7.7% 07-11 avg. * 21.8% 23.5% 17.6% 13.7% Note: Data for tier-one Taiwan suppliers incl. in Fig 1. *’06-’10 avg. w/o outlier. Note: Data for tier-one Taiwan suppliers incl. in Fig 2. *’06-’10 avg. w/o outlier. Source: Company data, Barclays Research estimates Source: Company data, Barclays Research estimates

Figure 25: MBs – 2001-10 shipment growth, q/q Figure 26: MBs – 2001-10 shipment growth, y/y

Total 1st Tier Total 1st Tier QoQ 1Q 2Q 3Q 4Q YoY 1Q 2Q 3Q 4Q 2002 -8.7% -12.1% 29.7% 18.0% 2002 4.8% 19.6% 21.6% 22.7% 2003 -5.6% -6.8% 22.3% 15.3% 2003 26.8% 34.6% 27.0% 24.1% 2004 -5.4% -12.5% 17.3% 18.4% 2004 24.3% 16.6% 11.8% 14.8% 2005 -12.3% 4.6% 12.4% 19.6% 2005 6.5% 27.3% 22.1% 23.4% 2006 -12.0% -7.2% 14.1% -4.7% 2006 23.8% 9.8% 11.5% -11.2% 2007 3.0% -3.1% 13.6% -3.9% 2007 4.0% 8.6% 8.2% 9.0% 2008 -17.6% -6.8% 6.7% -25.8%* 2008 -12.7% -16.1% -21.2% -39.2%* 2009 -3.9% 4.4%* 16.1% -10.4% 2009 -29.1%* -20.5%* -13.5% 4.5% 2010 -3.9% -8.6% 5.3% -1.2% 2010 4.5% -8.6% -17.1% -8.6% 2011 1.0% 8.0% 3.2% -21.0% 2011 -4.0% 13.5% 11.2% -11.0% 06-10 avg. * -6.9% -6.4% 11.2% -5.0% 06-10 avg. * 4.9% -1.6% -6.4% -1.6% 07-11 avg. * -4.2% -3.5% 7.2% -8.9% 07-11 avg. * -2.1% -0.6% -2.8% -1.3% Note: Data for tier-one Taiwan suppliers incl. in Fig 2. *’06-’10 avg. w/o outlier. Note: Data for tier-one Taiwan suppliers incl. in Fig 2. *’06-’10 avg. w/o outlier. Source: Company data, Barclays Research estimates Source: Company data, Barclays Research estimates

26 May 2012 11 Barclays | The Asia PC Pulse (Issue No. 37)

COMPANY SNAPSHOTS

2324 TT / 2324.TW Compal (2-Equal Weight; PT NT$33) Stock Rating  For May, we slightly cut Compal’s May NB shipments to grow by 23% to 3.45mn units 2-EQUAL WEIGHT (previously 3.5mn). Our checks suggest that its Japanese OEM customer started to shift Sector View orders to Pegatron in the quarter. We also note that some OEM orders will push out to 2-NEUTRAL June due to weaker-than-expected demand, particularly, in Europe. For June, we expect Price Target the company to continue to gradually increase the shipment by 4% m/m as the new TWD 33.00 Samsung project starts to ramp up in the month. Price (25-May-2012) TWD 31.40  Looking into 2Q12, we slightly lower our NB shipment forecast for Compal and now Potential Upside/Downside look for sequential growth of +21% q/q (was +23% before) following the company’s +5% more cautious view. But we still expect Compal to beat its official guidance of 15-20% growth due to the new order gain and a low base in the last quarter. For 3Q12, the company expects NB shipments to grow by double-digit q/q, with ultrabook driving NB demand. Operating margin should trend up sequentially throughout 2012.

 We reiterate our 2-EW rating on Compal and believe its growth momentum will start to pick up from 2Q12 and forecast 15-20% NB unit growth for FY12, although non-NB business growth momentum will likely remain muted. For 2012, Compal maintained its target for shipments to total 48mn units of NBs and tablet PCs. This suggests 15-20% y/y NB shipments growth, while tablet PCs will likely decline to 1.5-2mn units in 2012 from 2.15mn units in 2011. The company also looks for very back-end loaded NB shipments for this year and expects a 40:60 split for 1H:2H NB shipments. LCD TV shipments are guided to reach 7mn units in 2012, up from 5.5mn units in 2011. Compal does not expect ultrabooks to become the mainstream products in the near term due to a higher price tag and expects 20-30% penetration by the end of this year.

Figure 27: Compal – share price performance

37 NT$ (%) 120

35 110 100 33 90 31 80 29 70

27 60

25 50 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12

Compal shar e price (LHS) Rel. to TAIEX (RHS)

Source: TEJ, Barclays Research

26 May 2012 12 Barclays | The Asia PC Pulse (Issue No. 37)

2382 TT / 2382.TW Quanta (1-Overweight; PT: NT$92) Stock Rating  For the month of May, we maintain Quanta’s NB shipment forecast to increase by 18% 1-OVERWEIGHT m/m to 4.7mn units, in line with market expectation. This is mainly due to aggressive Sector View pull-in from MacBook refresh models and the shipment rebound from its main OEM 2-NEUTRAL customer. Our recent checks also indicate that MacBook Air shipments might ramp up Price Target over 80% m/m starting May. For June, we expect the company to gradually increase the TWD 92.00 shipment by 9% m/m as MacBook Pro refresh starts to pick up too. Price (25-May-2012) TWD 75.50  For 2Q12, our checks imply that the company might slightly trim 2Q12 shipment target Potential Upside/Downside toward the low-end of its official guidance of up 5-10%. However, given the strong +22% Apple orders and the other OEM’s in-line forecast, we maintain our NB shipment forecast for Quanta and still look for sequential growth of +5% q/q. Moving forward to 3Q12, the major upside catalyst we note will be Macbook Pro refresh projects, which will represent 30-40% of 3Q12 NB shipments, in our estimate.

 We reiterate our 1-OW rating and NT$92 PT for Quanta. For 2012, Quanta expects to outgrow the industry average of 5% y/y growth. Management foresees a healthier competitive landscape for the industry, with a better pricing environment as competitors, including ODMs and EMS, are less aggressive on pricing. Quanta expects ultrabooks to hit 25% penetration by the end of this year and considers the higher cost as a challenge to overcome, which could eventually be as low as US$499 in the future. Cloud computing accounts for less than 10% of sales in 2011 but should grow and account for 10-15% of sales in 2012. Non-NB sales (AIO, MP4, PND) should account for 20% of sales this year, implying a total of 35% if cloud computing is included.

Figure 28: Quanta – share price performance

90 NT$ (%) 190 85 170 80 75 150 70 130 65 60 110 55 90 50 70 45 40 50 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12

Quanta share price (LHS) Rel. to TAIEX (RHS)

Source: TEJ, Barclays Research

26 May 2012 13 Barclays | The Asia PC Pulse (Issue No. 37)

3231 TT / 3231.TW Wistron (2-Equal Weight; PT: NT$42) Stock Rating  Looking into May, we slightly cut Wistron’s May NB shipments to grow by 4% to 2.6mn 2-EQUAL WEIGHT units (previously 2.8mn), mostly due to some order push-outs. For June, we expect the Sector View company to have material improvement as new Acer ultrabook projects start to ramp 2-NEUTRAL up in the month. Wistron should see June NB shipment to outgrow the industry average Price Target and look for 19% m/m growth. TWD 42.00 Price (25-May-2012)  For 2Q12, our latest checks imply that the company cut 2Q12 shipment target to a TWD 37.35 decline of 3% q/q from 0% previously, which is below our previous estimate. As such, Potential Upside/Downside we trim our NB shipment forecast for Wistron to down 4% q/q, lower than the industry +12% average of up 8%. Apart from NB business, our checks suggest that LCD TV and handset shipment seem to remain weak in 2Q12 due to the loss in order allocation coupled with lacklustre market demand.

 We maintain our 2-EW rating and NT$42 PT for Wistron. The company expects to see better-than-industry growth for most of its product lines in 2012. By product, NBs (including tablets), handhelds and desktops are all guided to see more than 20% y/y unit growth. Wistron expects ultrabooks to account for at least 10% of its total NB shipments in 2012, with its higher-than-industry-average NB growth mostly coming from market share gains. Separately, we expect Wistron to benefit the most among its peer ODMs from next-generation ultrabook launches starting from 2Q12 as the company believes it is able to provide a unique solution for affordable ultrabook models.

Figure 29: Wistron – share price performance

55 NT$ (%) 120

50 110 100 45 90 40 80 35 70

30 60

25 50 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12

Wistron share price (LHS) Rel. to TAIEX (RHS)

Source: TEJ, Barclays Research

26 May 2012 14 Barclays | The Asia PC Pulse (Issue No. 37)

2356 TT / 2356.TW Inventec (3-Underweight; PT NT$10) Stock Rating  For May, we expect significant growth m/m and look for 1.6mn units – an increase of 3-UNDERWEIGHT 60% m/m. This is much higher than industry average of up 14%, primarily due to a very Sector View low base in April. For June, we expect NB shipment to remain flat as our channel checks 2-NEUTRAL suggest that its major customer turned more conservative on 2Q12, following a Price Target disappointing shipment forecast of -5% q/q. TWD 10.00 Price (25-May-2012)  For 2Q12, the company guides 2Q12 NB shipments to remain flat q/q, due to a higher TWD 9.60 base in 1Q12. But this is above our estimate of -3% q/q as we see the rolling forecast is Potential Upside/Downside slowing down into June. For 2H12, the company is positive about the catalysts, driven by +4% Windows 8 primarily, as it targets to grow 2012 NB shipments by 10% y/y. Aside from the NB segment, the company indicated that the sever business remains on an uptrend this year, based on customer forecasts. However, the product mix of board and system levels will start to change, since data centres typically only purchase main boards from ODMs. Due to this structural change, we think Inventec’s server quantity will outgrow overall revenues.

 We maintain our 3-UW rating and NT$10 PT for Inventec. We remain cautious about its margin trend, as it lacks a meaningful diversification plan and has a smaller operation scale compared with other top-tier ODMs. Although the company expects its new production site in Chongqing to save about 10% in labour costs, we think it is still away from break- even with a low utilization rate expected through the year. Another issue that concerns us is Inventec’s customer diversification as our checks suggest HP orders still take up nearly 50% of total shipments in 2012. By segment, Inventec indicated that the corporate segment accounts for 60% of its revenue while consumer only accounts for 40%.

Figure 30: Inventec – share price performance

17 NT$ (%) 110 16 100 15 14 90 13 80 12 11 70 10 60 9 8 50 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12

Inventec share price (LHS) Rel. to TAIEX (RHS)

Source: TEJ, Barclays Research

26 May 2012 15 Barclays | The Asia PC Pulse (Issue No. 37)

4938 TT / 4938.TW Pegatron (1-Overweight; PT NT$54) Stock Rating  For the month of May, we maintain Pegatron’s NB shipment forecast to fall by 24% 1-OVERWEIGHT m/m to 1.4mn units, due to a very high base in April. With regard to its major customer Sector View Asustek, the biggest outperformer among non Apple brands, its rolling forecast looks 2-NEUTRAL unchanged in May/June. However, our checks show that Asustek might cut some Price Target component orders into 3Q12 owing to overbooking in early 2Q12. Consequently, we TWD 54.00 expect Pegatron’s June NB shipment to stay flat m/m, lower than the peer average of up Price (25-May-2012) 8% m/m. TWD 39.95 Potential Upside/Downside  With regard to DTs/MBs, Pegatron’s April MB/DT shipments were down significantly, +35% primarily due to the market share loss. Our checks indicate its main customer Asustek began to shift orders to Cal-comp this year as Pegatron is more selective on order margins. As a result, we think DTs/MBs will lack a catalyst to grow in May/June and now look for Pegatron’s 2Q12 DT/MB shipments to decline by 3% q/q.

 Nevertheless, we reiterate our 1-OW rating and NT$54 PT for Pegatron as we believe the company continues to deliver aggressive revenue growth and an operational turnaround. Our channel checks also suggest that iPhone orders started to increase in volume with significant growth on a q/q basis. For 2012, Pegatron is optimistic about the outlook, mainly due to new products, new customers and market share gains. The utilisation rate at its communications segment should also improve, on a better product mix. Separately, downside risks include uncertain iPhone 5 allocation, a weaker consumer segment and lacklustre LCD TV demand.

Figure 31: Pegatron – share price performance

52 NT$ (%) 140 130 47 120 42 110 37 100 90 32 80 27 70 22 60 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12

Pegatron share pric e (LHS) Rel. to TAIEX (RHS)

Source: TEJ, Barclays Research

26 May 2012 16 Barclays | The Asia PC Pulse (Issue No. 37)

Gigabyte (2376 TT, not rated)

 For May, we expect overall DT/MB shipments to see a material improvement, mostly due to a low base in April. However, the recent checks indicate that the China DT/MB market remains sluggish even though new Ivy Bridge MBs were being massively shipped. We slightly revise down Gigabyte’s May MB/DT shipments to grow by 23% to 1.6mn units (previously 1.67mn), which is the biggest outperformer among MB peers. This is mainly due to its April shipment recognised into May.

 For 2Q12, we cut our expectation for Gigabyte MB shipments to grow by 2% q/q to 4.65mn units, below our previous forecast of 6% growth. This is also below the industry average of +8% q/q due to a higher base in 1Q12. On the other hand, our checks suggest that clone demand is weaker than expected in the month, as the retail inventory level is behind seasonality, in waiting for the low-priced Intel platform launch.

 Gigabyte’s 2011 MB shipments were down 2% y/y to18.67mn units. The gap between the company and its main competitor Asustek has widened, we believe, while Gigabyte lost share in the China market. We expect Gigabyte’s 2012 MB shipments to grow only in the low single digits, as the economic outlook for its main markets in China and Europe remain lacklustre in 2012. We believe Gigabyte’s NB business is likely to face sequential losses due to insufficient scale.

Figure 32: Gigabyte – share price performance

35 NT$ (%) 130 33 120 31 110 29 27 100 25 90 23 80 21 70 19 17 60 15 50 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12

Gigabyte share price (LHS) Rel. to TAIEX (RHS)

Source: TEJ, Barclays Research

26 May 2012 17 Barclays | The Asia PC Pulse (Issue No. 37)

Elitegroup (2331 TT, not rated)

 For May, we maintain Elitegroup’s MB shipments to grow by 12% m/m to 1.65mn units, as we note that OEM orders were better than expected. This is in line with the industry average. Going forward to June, we expect Elitegroup to continue growing OEM business due to the order gain and stable DT demand.

 For 2Q12, we stay with our forecast for Elitegroup’s MB shipments, expecting them to grow by 27% q/q to 4.88mn units, much better than the industry average of +8% q/q, due to a lower base in 1Q12. On the other hand, our checks suggest that the company continues to gain OEM orders as EMS players turn more selective on margins. Looking ahead to 3Q12, the upside potential we want to see includes 1) Computex Taipei could boost buyer demand for the new Intel platform; and 2) China DT/MB demand could see recovery upon the release of low-priced i3 CPUs.

 For 2012, Elitegroup expects to diversify its business into e-readers, tablets and NBs. By product, e-reader models with touch capability may be priced as high as US$300 and thus the company is now trying hard to improve the cost structure. For tablet PCs, there are various models that are available in Windows, Android and MeeGo, and the company has started shipments to a local brand in Europe. Apart from DT/MB, the company targets to develop NB business in emerging countries as it still sees upside potential for clone customers. As such, Elitegroup expects to ship 2-3mn NB units in 2012.

Figure 33: Elitegroup – share price performance

13 NT$ (%) 130 12 120 11 110 10 100 9 90 8 80 7 70 6 60 5 50 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12

Elitegroup share pr ice (LHS) Rel. to TAIEX (RHS)

Source: TEJ, Barclays Research

26 May 2012 18 Barclays | The Asia PC Pulse (Issue No. 37)

Microstar (2377 TT, not rated)

 For the month of May, we slightly cut Microstar’s MB shipments to grow by 6% to 0.9mn units (previously 0.97mn). In addition, the company suggests that HDD supply has been gradually recovering in the month but the retail price remains higher than its previous level before the flood in Thailand. The company indicates that the order visibility remains low going forward to June but will expect Computex to boost the demand from the new Intel platform.

 For 2Q12, the company guides for a gradual increase in coming months as the inventory level has stayed healthy in recent months. However, we trim our forecast for Microstar’s MB shipments and now look for 7% q/q unit growth (10% previously) as we note that increasing competition against AsRock might cannibalise Microstar’s market share in the mid-low end segment. Looking ahead to 2H12, we remain cautious about the company’s potential for upside and note Microstar has posted muted growth since 3Q11.

 Microstar’s 2011 MB shipments were down 5% y/y to 14.8mn units. This is lower than the industry average growth, mostly due to more weight on the NB business over the past few years. However, our checks suggest the company plans to refocus on the MB business and set a high standard goal of 17mn units. In our view, Microstar has yet to face the toughest year ever, while its main competitor AsRock has outpaced Microstar in the entry level segment in 2011. Aside from MB business, the company showcased several tablets at Computex 2011, both Android and Windows versions. We believe that the tablet contribution remains limited for Microstar in 2012.

Figure 34: Microstar – share price performance

18 NT$ (%) 120 17 110 16 100 15 90 14 80 13 70 12 11 60 10 50 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12

Microstar share price (LHS) Rel. to TAIEX (RHS)

Source: TEJ, Barclays Research

26 May 2012 19 Barclays | The Asia PC Pulse (Issue No. 37)

APPENDIX I: NOTEBOOK, DESKTOP, TABLET PCS AND SERVERS

Figure 35: NB buyer/supplier matrix 2012E Barclays Capital Asia ex-Japan Technology Hardware Research - 2012E Notebook Buyer/Supplier Matrix 2012E Quanta Compal Wistron Pegatron Inventec Hon Hai In-house / Others 2012E Total HP 40.4% 2.7% 16.8% 1.1% 16.5% 22.6% 0.0% 100.0% Brand ranking HP #1 HP #5 HP #3 HP #6 HP #4 HP #2 Products Mainstream Consumer Commercial and Specific Models Commercial Commercial and Low- Commercial and Consumer end Consumer Consumer Brand units 15,200 1,000 6,300 400 6,200 8,500 0 37,600 Acer 29.1% 48.3% 19.3% 3.4% 0.0% 0.0% 0.0% 100.0% Brand ranking Acer #2 Acer #1 Acer #3 Acer #4 Products Mainstream Consumer Mainstream Consumer Specific Commercial Commercial and Models Consumer Brand units 8,600 14,300 5,700 1,000 0 0 0 29,600 Lenovo 13.8% 32.5% 36.6% 4.9% 0.0% 0.0% 12.2% 100.0% Brand ranking Lenovo #3 Lenovo #2 Lenovo #1 Lenovo #5 Lenovo #4 Products Consumer Commercial and Commercial and Consumer Consumer Consumer Brand units 3,400 8,000 9,000 1,200 0 0 3,000 24,600 Dell 13.9% 60.1% 26.1% 0.0% 0.0% 0.0% 0.0% 100.0% Brand ranking Dell #3 Dell #1 Dell #2 Products Mainstream Consumer Mainstream Commercial and Commercial and Consumer Consumer Brand units 3,300 14,300 6,200 0 0 0 0 23,800 Asustek 29.8% 15.2% 5.2% 49.7% 0.0% 0.0% 0.0% 100.0% Brand ranking Asustek #2 Asustek #3 Asustek #4 Asustek #1 Products Mainstream and Low- Low-end Models Mainstream Models end Consumer and High-end Consumer Brand units 5,700 2,900 1,000 9,500 0 0 0 19,100 Toshiba 22.6% 7.4% 0.0% 30.0% 32.6% 0.0% 7.4% 100.0% Brand ranking Toshiba #3 Toshiba #4 Toshiba #2 Toshiba #1 Toshiba #4 Products Specific Models Consumer Commercial and Consumer Brand units 4,300 1,400 0 5,700 6,200 0 1,400 19,000 Apple 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Brand ranking Apple #1 Products MacBook Pro/Air Brand units 14,300 0 0 0 0 0 0 14,300 Samsung 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Brand ranking 100% in-house Products Brand units 0 0 0 0 0 0 12,400 12,400 Sony 40.4% 0.0% 44.7% 0.0% 0.0% 10.6% 4.3% 100.0% Brand ranking Sony #2 Sony #1 Sony #3 Sony #4 Products Mainstream Consumer Commercial and Low-end Consumer Consumer Brand units 3,800 0 4,200 0 0 1,000 400 9,400 Others 1,000 1,000 0 1,400 0 1,000 22,993 27,393

2012E Total 59,600 42,900 32,400 19,200 12,400 10,500 40,193 217,193 2011E Total 55,800 39,250 31,550 14,325 15,750 13,500 39,339 209,514 YoY (%) 6.8% 9.3% 2.7% 34.0% -21.3% -22.2% 2.2% 3.7% Source: Company data, Barclays Research estimates

Figure 36: NB brand as % of supplier 2012E In-house/ Quanta Compal Wistron Pegatron Inventec Hon Hai Others HP 25.5% 2.3% 19.4% 2.1% 50.0% 81.0% 0.0% Acer 14.4% 33.3% 17.6% 5.2% 0.0% 0.0% 0.0% Lenovo 5.7% 18.6% 27.8% 6.3% 0.0% 0.0% 7.5% Dell 5.5% 33.3% 19.1% 0.0% 0.0% 0.0% 0.0% Asustek 9.6% 6.8% 3.1% 49.5% 0.0% 0.0% 0.0% Toshiba 7.2% 3.3% 0.0% 29.7% 50.0% 0.0% 3.5% Apple 24.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Samsung 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 30.9% Sony 6.4% 0.0% 13.0% 0.0% 0.0% 9.5% 1.0% Others 1.7% 2.3% 0.0% 7.3% 0.0% 9.5% 57.2% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Total Source: Company data, Barclays Research estimates

26 May 2012 20 Barclays | The Asia PC Pulse (Issue No. 37)

Figure 37: Barclays Research’s global PC (NBs + DTs) shipment forecasts

Units in (000) Calendar Year 2009 2010 1Q11 2Q11 3Q11 4Q11 2011 1Q12 2Q12E 3Q12E 4Q12E 2012E 2013E 2014E 2015E Worldwide 315,117 358,157 85,125 86,985 96,278 96,140 364,527 89,066 90,176 98,470 98,423 376,135 382,267 388,216 392,785 Y/Y 5.1% 13.7% -1.0% 2.3% 5.4% 0.3% 1.8% 4.6% 4% 2% 2% 3.2% 1.6% 1.6% 1.2% Q/Q -11.2% 2.2% 10.7% -0.1% -7.4% 1.2% 9.2% 0.0%

U.S. 71,395 75,333 16,412 17,849 18,766 18,623 71,650 16,424 17,673 18,152 18,561 70,810 70,613 70,011 69,241 Y/Y 9% 6% -9% -5% 2% -7% -5% 0% -1% -3% 0% -1% 0% -1% -1% Q/Q -18% 9% 5% -1% -12% 8% 3% 2% % of Total 23% 21% 19% 21% 19% 19% 20% 18% 20% 18% 19% 19% 18% 18% 18%

Western Europe 68,186 71,237 15,136 12,609 15,407 17,795 60,947 15,032 12,778 15,366 17,686 60,861 60,509 60,417 60,017 Y/Y 1% 4% -17% -21% -10% -11% -14% -1%1%0%-1% 0% -1% 0% -1% Q/Q -24% -17% 22% 16% -16% -15% 20% 15% % of Total 22% 20% 18% 14% 16% 19% 17% 17% 14% 16% 18% 16% 16% 16% 15%

Japan 13,920 16,321 3,951 3,899 3,988 3,912 15,750 4,354 3,590 3,639 3,639 15,221 14,892 14,358 13,878 Y/Y -4% 17% -16% 3% 5% -3% -3% 10% -8% -9% -7% -3% -2% -4% -3% Q/Q -2% -1% 2% -2% 11% -18% 1% 0% % of Total 4% 5% 5% 4% 4% 4% 4% 5% 4% 4% 4% 4% 4% 4% 4%

Asia Pacific 93,361 111,083 28,568 31,141 33,055 30,067 122,830 30,311 32,583 34,368 31,085 128,347 131,587 134,854 137,748 Y/Y 17% 19% 9% 12% 12% 9% 11% 6% 5% 4% 3% 4% 3% 2% 2% Q/Q 3% 9% 6% -9% 1% 7% 5% -10% % of Total 30% 31% 34% 36% 34% 31% 34% 34% 36% 35% 32% 34% 34% 35% 35%

Rest of World 68,256 84,182 21,060 21,486 25,062 25,743 93,350 22,945 23,553 26,944 27,453 100,895 104,666 108,575 111,902 Y/Y -5% 23% 13% 14% 12% 7% 11% 9% 10% 8% 7% 8% 4% 4% 3% Q/Q -13% 2% 17% 3% -11% 3% 14% 2% % of Total 22% 24% 25% 25% 26% 27% 26% 26% 26% 27% 28% 27% 27% 28% 28% Note: NB = notebooks; DT = desktops Source: IDC, Gartner, Barclays Research estimates

Figure 38: Barclays Research’s global PC (NBs + DTs) vendor unit market share trend Worldwide PC Shipment Trend Y/Y Vendor 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 Shipment y/y HP 18.3% 17.4% 15.5% 3.8% 3.0% 4.0% 9.4% 24.2% 20.1% 12.7% 0.1% -0.7% -2.5% 3.2% 5.5% -15.9% 3.4% Lenovo 21.1% 14.6% 7.2% -4.5% -8.2% 1.2% 17.3% 42.1% 59.0% 47.6% 33.3% 20.6% 15.9% 23.1% 35.9% 36.8% 43.7% Dell 21.6% 21.3% 12.0% -6.2% -16.5% -18.9% -6.5% 5.2% 20.8% 19.3% 10.1% 4.4% -1.2% 2.9% -1.3% 7.1% -2.1% Acer Group 63.5% 58.5% 61.4% 23.4% 10.2% 24.3% 24.8% 28.5% 42.2% 20.2% 6.5% -7.5% -16.6% -10.9% -19.4% -8.2% 0.7% ASUS 123.5% 126.1% 153.4% 82.6% 9.5% 13.4% 10.2% 42.9% 114.3% 80.0% 25.6% 8.7% -1.2% 4.0% 25.7% 24.4% 25.3% Toshiba 21.9% 31.2% 29.1% 21.4% 15.2% 8.7% 7.5% 28.8% 30.1% 29.0% 15.1% 12.4% 4.5% 1.4% 5.7% -3.8% -2.9% Apple 52.5% 41.9% 19.6% 7.9% -3.2% 4.2% 16.9% 33.2% 32.8% 33.4% 27.3% 23.0% 27.8% 13.7% 26.0% 25.7% 7.4% Market 15.2% 15.6% 14.1% 0.2% -4.6% 0.1% 5.0% 18.7% 25.7% 20.2% 9.5% 3.5% -1.0% 2.3% 5.4% 0.3% 4.6%

Market share HP 18.1% 18.3% 18.6% 19.1% 19.7% 19.2% 19.6% 20.2% 18.8% 17.9% 17.8% 19.5% 18.6% 18.1% 17.9% 16.3% 17.7% Lenovo 6.9% 8.1% 7.6% 7.3% 6.7% 8.3% 8.6% 8.8% 8.4% 10.2% 10.4% 10.2% 9.9% 12.2% 13.5% 14.0% 13.1% Dell 14.9% 15.9% 14.0% 13.3% 13.1% 13.0% 12.6% 11.9% 12.6% 12.8% 12.6% 12.1% 12.6% 12.9% 11.8% 12.9% 11.4% Acer Group 9.8% 9.9% 11.2% 11.7% 11.4% 12.4% 13.5% 12.8% 13.0% 12.4% 13.4% 11.5% 10.9% 10.7% 10.1% 10.5% 10.1% ASUS 2.7% 3.0% 4.3% 4.2% 3.1% 3.4% 4.5% 5.1% 5.2% 5.0% 5.3% 5.3% 5.2% 5.2% 6.2% 6.6% 6.1% Toshiba 4.4% 4.6% 4.9% 4.9% 5.4% 5.0% 5.0% 5.3% 5.6% 5.4% 5.2% 5.8% 5.9% 5.3% 5.3% 5.5% 5.3% Apple 3.3% 3.6% 3.4% 3.3% 3.4% 3.9% 3.8% 3.7% 3.5% 4.2% 4.4% 4.5% 4.5% 4.7% 5.3% 5.3% 4.5% Source: IDC, Gartner, Barclays Research estimates

Figure 39: Barclays Research’s global PC (NBs + DTs) vendor unit y/y and q/q trend Worldwide PC Vendor Unit Trends (units in millions) Vendor 1Q08 2Q08 3Q08 4Q08 2008 1Q09 2Q09 3Q09 4Q09 2009 1Q10 2Q10 3Q10 4Q10 2010 1Q11 2Q11 3Q11 4Q11 2011 1Q12 HP 12.6 12.6 14.4 14.6 54.3 13.0 13.2 15.8 18.1 60.1 15.6 14.8 15.8 18.0 64.2 15.2 15.3 16.7 15.1 62.3 15.8 q/q 0.1% 14.2% 1.0% -10.8% 1.2% 20.1% 14.7% -13.8% -5.1% 6.7% 13.8% -15.3% 0.5% 9.0% -9.3% 4.1% y/y 3.0% 4.0% 9.4% 24.2% 10.6% 20.1% 12.7% 0.1% -0.7% 7.0% -2.5% 3.2% 5.5% -15.9% -3.0% 3.4% Lenovo 4.8 5.6 5.9 5.6 21.9 4.4 5.7 6.9 7.9 24.9 7.0 8.4 9.2 9.5 34.1 8.1 10.3 12.6 13.0 44.0 11.7 q/q 16% 6% -6% -20% 28% 22% 14% -11% 19% 11% 3%-14%26% 22% 4% -10% y/y -8% 1% 17% 42% 14% 59% 48% 33% 21% 37% 16% 23% 36% 37% 29% 44% Dell 10.4 11.0 10.9 10.2 42.4 8.7 8.9 10.2 10.7 38.4 10.5 10.6 11.2 11.2 43.4 10.3 10.9 11.0 12.0 44.3 10.1 q/q 6% -1% -6% -15% 3% 14% 5% -2% 2% 5% 0% -7% 6% 1% 8% -15% y/y -17% -19% -7% 5% -9% 21% 19% 10% 4% 13% -1% 3%-1%7% 2%-2% Acer Group 6.8 6.8 8.7 9.0 31.3 7.5 8.5 10.9 11.5 38.4 10.7 10.2 11.6 10.6 43.2 9.0 9.1 9.3 9.8 37.2 9.0 q/q 0% 28% 3% -16% 12% 28% 6% -7% -5% 14% -8% -16% 1% 3%5% -8% y/y 10% 24% 25% 28% 23% 42% 20% 7% -7% 12% -17% -11% -19% -8% -14% 1% ASUS 1.9 2.1 3.3 3.2 10.4 2.0 2.3 3.7 4.5 12.6 4.4 4.2 4.6 4.9 18.1 4.3 4.4 5.8 6.1 20.6 5.4 q/q 11% 61% -5% -36% 15% 57% 24% -4% -3% 9% 7% -13% 2% 32% 6% -12% y/y 10% 13% 10% 43% 21% 114% 80% 26% 9% 44% -1% 4% 26% 24% 14% 25% Toshiba 3.1 3.2 3.8 3.7 13.7 3.6 3.4 4.1 4.8 15.8 4.6 4.4 4.7 5.4 19.1 4.8 4.5 4.9 5.2 19.4 4.7 q/q 2% 20% -2% -4% -3% 18% 17% -3% -4% 5% 14% -10% -7% 10% 4% -9% y/y 15%9%7%29% 15% 30% 29% 15% 12% 21% 4% 1% 6% -4% 2%-3% Apple 2.3 2.5 2.6 2.5 9.9 2.2 2.6 3.1 3.4 11.2 2.9 3.5 3.9 4.1 14.4 3.8 3.9 4.9 5.2 17.8 4.0 q/q 9% 5% -3% -12% 17% 17% 10% -12% 18% 12% 6% -9% 5% 24% 6% -22% y/y -3% 4% 17% 33% 13% 33% 33% 27% 23% 28% 28% 14% 26% 26% 23% 7% Source: IDC, Gartner, Barclays Research estimates

26 May 2012 21 Barclays | The Asia PC Pulse (Issue No. 37)

Figure 40: Barclays Research’s global PC (NBs + DTs) corporate/consumer unit trend WW PC Market Corporate/Consumer Unit Trend 2006 2007 2008 2009 2010 2011 Total PCs 231,119 270,743 299,783 315,117 358,157 364,527 Y/Y Growth 13% 17% 11% 5% 14% 2% Consumer 93,918 114,572 139,021 170,103 193,405 196,845 Y/Y Growth 16% 22% 21% 22% 14% 2% % of Total 41% 42% 46% 54% 54% 54% Corporate 137,201 156,171 160,761 145,013 164,752 167,683 Y/Y Growth 11% 14% 3% -10% 14% 11% % of Total 59% 58% 54% 46% 46% 46% Note: Total PC does not include tablet shipments Source: IDC, Gartner, Barclays Research estimates

Figure 41: Barclays Research’s global NB shipment forecasts

Units in (000) Calendar Year 2009 2010 1Q11 2Q11 3Q11 4Q11 2011 1Q12 2Q12E 3Q12E 4Q12E 2012E 2013E 2014E 2015E Worldwide 168,963 201,015 48,072 48,851 55,948 56,643 209,514 50,284 50,932 57,617 58,360 217,193 223,842 230,304 237,501 Y/Y 18.7% 19.0% 0.5% 5.2% 7.9% 3.2% 4.2% 4.6% 4.3% 3.0% 3.0% 3.7% 3.1% 2.9% 3.1% Q/Q -12.4% 1.6% 14.5% 1.2% -11.2% 1.3% 13.1% 1.3%

U.S. 42,622 46,453 10,172 10,817 11,646 11,737 44,371 9,814 10,403 11,027 11,578 42,822 41,932 41,181 41,053 Y/Y 24.6% 9.0% -8.8% -2.6% 2.9% -8.8% -4.5% -3.5% -3.8% -5.3% -1.4% -3.5% -2.1% -1.8% -0.3% Q/Q -21.0% 6.3% 7.7% 0.8% -16.4% 6.0% 6.0% 5.0% % of Total 25% 23% 21% 22% 21% 21% 21% 20% 20% 19% 20% 20% 19% 18% 17%

Western Europe 45,226 47,916 9,912 8,227 10,183 12,154 40,475 9,405 7,994 9,913 11,796 39,109 39,321 39,053 39,214 Y/Y 7.7% 5.9% -18.9% -22.2% -11.4% -10.8% -15.5% -5.1% -2.8% -2.6% -2.9% -3.4% 0.5% -0.7% 0.4% Q/Q -27.2% -17.0% 23.8% 19.4% -22.6% -15.0% 24.0% 19.0% % of Total 27% 24% 21% 17% 18% 21% 19% 19% 16% 17% 20% 18% 18% 17% 17%

Japan 8,648 9,968 2,475 2,417 2,495 2,511 9,899 2,771 2,244 2,267 2,335 9,616 9,447 9,033 8,760 Y/Y 0.2% 15.3% -16.4% 3.7% 12.2% 2.4% -0.7% 11.9% -7.2% -9.2% -7.0% -2.9% -1.8% -4.4% -3.0% Q/Q 1.0% -2.4% 3.2% 0.6% 10.3% -19.0% 1.0% 3.0% % of Total 5% 5% 5% 5% 4% 4% 5% 6% 4% 4% 4% 4% 4% 4% 4%

Asia Pacific 38,844 49,862 13,711 14,914 16,116 14,184 58,924 14,960 16,157 17,449 15,181 63,746 67,782 71,703 75,595 Y/Y 41.8% 28.4% 15.6% 20.7% 17.4% 19.0% 18.2% 9.1% 8.3% 8.3% 7.0% 8.2% 6.3% 5.8% 5.4% Q/Q 15.0% 8.8% 8.1% -12.0% 5.5% 8.0% 8.0% -13.0% % of Total 23% 25% 29% 31% 29% 25% 28% 30% 32% 30% 26% 29% 30% 31% 32%

Rest of World 33,623 46,815 11,803 12,477 15,509 16,059 55,847 13,334 14,135 16,961 17,470 61,901 65,361 69,333 72,878 Y/Y 11.5% 39.2% 22.4% 23.7% 18.5% 14.7% 19.3% 13.0% 13.3% 9.4% 8.8% 10.8% 5.6% 6.1% 5.1% Q/Q -15.7% 5.7% 24.3% 3.5% -17.0% 6.0% 20.0% 3.0% % of Total 20% 23% 25% 26% 28% 28% 27% 27% 28% 29% 30% 29% 29% 30% 31% Source: IDC, Gartner, Barclays Research estimates

Figure 42: Barclays Research’s global DT shipment forecasts

Units in (000) Calendar Year 2009 2010 1Q11 2Q11 3Q11 4Q11 2011 1Q12 2Q12E 3Q12E 4Q12E 2012E 2013E 2014E 2015E Worldwide 146,154 157,142 37,053 38,134 40,330 39,497 155,013 38,782 39,244 40,853 40,063 158,942 158,425 157,912 155,284 Y/Y -7.1% 7.5% -2.9% -1.0% 2.2% -3.6% -1.4% 4.7% 2.9% 1.3% 1.4% 2.5% -0.3% -0.3% -1.7% Q/Q -9.6% 2.9% 5.8% -2.1% -1.8% 1.2% 4.1% -1.9%

U.S. 28,772 28,880 6,240 7,033 7,120 6,886 27,280 6,610 7,271 7,125 6,983 27,989 28,681 28,830 28,188 Y/Y -8% 0% -9.9% -7.8% -0.4% -4.0% -5.5% 5.9% 3.4% 0.1% 1.4% 2.6% 2.5% 0.5% -2.2% Q/Q -13.0% 12.7% 1.2% -3.3% -4.0% 10.0% -2.0% -2.0% % of Total 20% 18% 17% 18% 18% 17% 18% 17% 19% 17% 17% 18% 18% 18% 18%

Western Europe 22,960 23,322 5,224 4,382 5,224 5,642 20,472 5,627 4,783 5,453 5,889 21,753 21,188 21,364 20,802 Y/Y -11% 2% -12.7% -17.5% -7.9% -11.2% -12.2% 7.7% 9.1% 4.4% 4.4% 6.3% -2.6% 0.8% -2.6% Q/Q -17.8% -16.1% 19.2% 8.0% -0.3% -15.0% 14.0% 8.0% % of Total 16% 15% 14% 11% 13% 14% 13% 15% 12% 13% 15% 14% 13% 14% 13%

Japan 5,272 6,352 1,475 1,482 1,493 1,401 5,851 1,583 1,346 1,373 1,304 5,606 5,445 5,325 5,117 Y/Y -11% 20% -15.1% 2.2% -5.3% -11.8% -7.9% 7.3% -9.2% -8.1% -6.9% -4.2% -2.9% -2.2% -3.9% Q/Q -7.1% 0.5% 0.7% -6.2% 13.0% -15.0% 2.0% -5.0% % of Total 4% 4% 4% 4% 4% 4% 4% 4% 3% 3% 3% 4% 3% 3% 3%

Asia Pacific 54,517 61,221 14,857 16,227 16,939 15,883 63,906 15,352 16,426 16,919 15,904 64,601 63,806 63,151 62,153 Y/Y 4% 12% 2.9% 5.5% 7.9% 1.1% 4.4% 3.3% 1.2% -0.1% 0.1% 1.1% -1.2% -1.0% -1.6% Q/Q -5.4% 9.2% 4.4% -6.2% -3.3% 7.0% 3.0% -6.0% % of Total 37% 39% 40% 43% 42% 40% 41% 40% 42% 41% 40% 41% 40% 40% 40%

Rest of World 34,632 37,367 9,257 9,009 9,553 9,684 37,504 9,610 9,418 9,983 9,983 38,994 39,305 39,242 39,024 Y/Y -17% 8% 2.0% 2.8% 2.0% -4.8% 0.4% 3.8% 4.5% 4.5% 3.1% 4.0% 0.8% -0.2% -0.6% Q/Q -9.0% -2.7% 6.0% 1.4% -0.8% -2.0% 6.0% 0.0% % of Total 24% 24% 25% 24% 24% 25% 24% 25% 24% 24% 25% 25% 25% 25% 25% Source: IDC, Gartner, Barclays Research estimates

26 May 2012 22 Barclays | The Asia PC Pulse (Issue No. 37)

Figure 43: Barclays Research’s tablet PC and Apple product shipment forecasts

Units in (000) 2010 1Q11 2Q11 3Q11 4Q11 2011 1Q12 2Q12E 3Q12E 4Q12E 2012E 2013E 2014E 2015E Apple iPad Forecast 14,789 4,694 9,246 11,123 15,434 40,497 11,798 14,158 15,857 20,138 61,950 84,981 101,492 116,716 q/q change 97% 20% 39% -24% 20% 12% 27% y/y change 183% 166% 111% 174% 151% 53% 43% 30% 53% 37% 19% 15% Other Tablets 3,211 1,750 4,770 7,550 10,550 24,620 5,600 6,720 10,080 16,632 39,032 44,921 49,414 53,046 q/q change 173% 58% 40% -47% 20% 50% 65% y/y change 1974% 1243% 336% 667% 220% 41% 34% 58% 59% 15% 10% 7% Total Tablet Forecast 18,000 6,444 14,016 18,673 25,984 65,117 17,398 20,878 25,937 36,770 100,982 129,903 150,906 169,762 y/y change - - 300% 293% 167% 262% 170% 49% 39% 42% 55% 29% 16% 12%

Apple iPhone Forecast 47,487 18,647 20,338 17,073 37,044 93,102 35,064 28,051 28,051 43,479 134,646 176,139 209,051 q/q change 9% -16% 117% -5% -20% 0% 55% y/y change 89% 142% 21% 128% 96% 88% 38% 64% 17% 45% 31% 19% Apple Notebook Forecast 9,814 2,751 2,792 3,616 3,719 12,878 2,818 3,241 3,986 4,265 14,310 17,664 q/q change 1% 30% 3% -24% 15% 23% 7% y/y change 30% 13% 37% 28% 31% 2% 16% 10% 15% 11% 23% Apple Desktop Forecast 4,620 1,009 1,155 1,278 1,479 4,921 1,199 1,295 1,489 1,564 5,547 5,791 q/q change 14% 11% 16% -19% 8% 15% 5% y/y change 25% 15% 3% 21% 7% 19% 12% 17% 6% 13% 4% Source: IDC, Gartner, Barclays Research estimates

Figure 44: Barclays Research’s worldwide PC shipment forecasts – tablet PC impact Units in (000) 20101Q112Q113Q114Q1120111Q12 2Q12E 3Q12E 4Q12E 2012E 2013E 2014E 2015E Apple iPad Forecast 14,789 4,694 9,246 11,123 15,434 40,497 11,798 14,158 15,857 20,138 61,950 84,981 101,492 116,716 Total Tablet Forecast 18,000 6,444 14,016 18,673 25,984 65,117 17,398 20,878 25,937 36,770 100,982 129,903 150,906 169,762 y/y change -43.8% -28.4% 100.2% 157.6% 235.3% 261.8% 170.0% 49.0% 38.9% 41.5% 55.1% 28.6% 16.2% 12.5%

Total Notebooks (includes netbooks) 201,015 48,072 48,851 55,948 56,643 209,514 50,284 50,932 57,617 58,360 217,193 223,842 230,304 237,501 y/y change 19.0% 0.5% 5.2% 7.9% 3.2% 4.2% 4.6% 4.3% 3.0% 3.0% 3.7% 3.1% 2.9% 3.1%

Notebooks INCLUDING Tablets 219,015 54,516 62,867 74,621 82,627 274,631 67,682 71,810 83,553 95,130 318,175 353,744 381,209 407,263 y/y change 29.6% 14.0% 25.8% 31.8% 27.9% 25.4% 24.1% 14.2% 12.0% 15.1% 15.9% 11.2% 7.8% 6.8%

Total Netbooks 31,000 7,500 7,000 7,000 4,500 26,000 3,000 4,000 5,000 5,000 17,000 15,500 14,250 13,100 y/y change -3.1% -16.7% 0.0% -3.4% -41.9% -16.1% -60.0% -42.9% -28.6% 11.1% -34.6% -8.8% -8.1% -8.1%

CORE Notebooks Excluding Netbooks & Tablets Entirely 170,015 40,572 41,851 48,948 52,143 183,514 47,284 46,932 52,617 53,360 200,193 208,342 216,054 224,401 y/y change 24.1% 4.5% 6.1% 9.7% 10.7% 7.9% 16.5% 12.1% 7.5% 2.3% 9.1% 4.1% 3.7% 3.9%

Total PC Unit Forecast (includes netbooks) 358,157 85,125 86,985 96,278 96,140 364,527 89,066 90,176 98,470 98,423 376,135 382,267 388,216 392,785 y/y change 13.7% -1.0% 2.3% 5.4% 0.3% 1.8% 4.6% 3.7% 2.3% 2.4% 3.2% 1.6% 1.6% 1.2%

Total PCs INCLUDING Tablets 376,157 91,569 101,001 114,951 122,124 429,644 106,464 111,054 124,406 135,193 477,117 512,170 539,121 562,547 y/y change 19.4% 6.5% 14.1% 19.7% 15.6% 14.2% 16.3% 10.0% 8.2% 10.7% 11.0% 7.3% 5.3% 4.3%

CORE PCs Excluding Netbooks & Tablets Entirely 327,157 77,625 79,985 89,278 91,640 338,527 86,066 86,176 93,470 93,423 359,135 366,767 373,966 379,685 y/y change 15.6% 0.8% 2.6% 6.2% 4.0% 3.5% 10.9% 7.7% 4.7% 1.9% 6.1% 2.1% 2.0% 1.5% Source: IDC, Gartner, Barclays Research estimates

Figure 45: Barclays Research’s mobile products shipment forecasts Mobility Products - Units Units in (000) 2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E eReaders - - 200 700 3,012 12,306 25,852 33,291 41,037 44,518 Tablets - - - - - 18,000 65,117 100,982 129,903 150,906 Notebooks 63,150 80,426 107,559 142,404 168,963 201,015 209,514 217,193 223,842 230,304 Smartphones 54,000 82,000 122,000 140,000 189,000 282,694 470,433 688,187 908,161 1,089,794 iPhone 3,704 15,765 25,105 47,487 93,102 134,646 176,139 209,051 Total 117,150 162,426 229,759 283,104 360,975 514,014 770,916 1,039,653 1,302,943 1,515,522 Y/Y Growth 39% 41% 23% 28% 42% 50% 35% 25% 16% Source: IDC, Gartner, Barclays Research estimates

26 May 2012 23 Barclays | The Asia PC Pulse (Issue No. 37)

Figure 46: Barclays Research x86 server shipments model

Units in (000) Calendar Year 2009 2010 1Q11 2Q11 3Q11 4Q11 2011 1Q12 2Q12E 3Q12E 4Q12E 2012E 2013E 2014E 2015E Worldwide 6,534 7,650 1,885 1,958 2,022 2,135 8,000 1,946 1,981 2,100 2,233 8,260 8,463 8,531 8,500 Y/Y -15.9% 17.1% 3.6% 6.4% 5.9% 2.6% 4.6% 3.2% 1.2% 3.9% 4.6% 3.3% 2.5% 0.8% -0.4% Q/Q -9.4% 3.9% 3.3% 5.6% -8.9% 1.8% 6.0% 6.3%

U.S. 2,370 2,880 640 700 715 720 2,775 685 740 769 785 2,979 3,072 3,079 3,013 Y/Y -14.6% 21.5% -3.8% -4.8% -3.4% -2.7% -3.6% 7.0% 5.7% 7.6% 9.0% 7.4% 3.1% 0.2% -2.2% Q/Q -13.5% 9.4% 2.1% 0.7% -4.9% 8.0% 4.0% 2.0% % of Total 36.3% 37.6% 34.0% 35.8% 35.4% 33.7% 34.7% 35.2% 37.3% 36.6% 35.2% 36.1% 36.3% 36.1% 35.4%

Western Europe 1,495 1,645 415 387 382 450 1,634 387 360 371 437 1,555 1,518 1,473 1,432 Y/Y -20.4% 10.0% 0.0% 1.8% -2.1% -2.2% -0.7% -6.7% -7.0% -3.0% -2.8% -4.8% -2.4% -3.0% -2.8% Q/Q -9.8% -6.7% -1.3% 17.8% -14.0% -7.0% 3.0% 18.0% % of Total 22.9% 21.5% 22.0% 19.8% 18.9% 21.1% 20.4% 19.9% 18.2% 17.7% 19.6% 18.8% 17.9% 17.3% 16.8%

Japan 499 540 135 124 145 125 529 143 107 134 121 505 484 465 448 Y/Y -12.5% 8.2% -12.9% 7.8% 3.6% -3.8% -2.0% 5.9% -13.5% -7.5% -3.5% -4.5% -4.2% -3.8% -3.7% Q/Q 3.8% -8.1% 16.9% -13.8% 14.4% -25.0% 25.0% -10.0% % of Total 7.6% 7.1% 7.2% 6.3% 7.2% 5.9% 6.6% 7.3% 5.4% 6.4% 5.4% 6.1% 5.7% 5.5% 5.3%

Asia Pacific 1,315 1,580 430 490 505 540 1,965 460 506 536 574 2,076 2,189 2,278 2,355 Y/Y -5.9% 20.2% 22.9% 28.9% 27.8% 18.7% 24.4% 7.0% 3.3% 6.2% 6.3% 5.7% 5.4% 4.1% 3.4% Q/Q -5.5% 14.0% 3.1% 6.9% -14.8% 10.0% 6.0% 7.0% % of Total 20.1% 20.7% 22.8% 25.0% 25.0% 25.3% 24.6% 23.6% 25.5% 25.5% 25.7% 25.1% 25.9% 26.7% 27.7%

Rest of World 855 1,005 265 257 275 300 1,097 271 268 290 316 1,145 1,201 1,236 1,253 Y/Y -25.4% 17.5% 12.8% 11.7% 12.2% 1.7% 9.2% 2.3% 4.4% 5.4% 5.3% 4.4% 4.9% 2.9% 1.4% Q/Q -10.2% -3.0% 7.0% 9.1% -9.7% -1.0% 8.0% 9.0% % of Total 13.1% 13.1% 14.1% 13.1% 13.6% 14.1% 13.7% 13.9% 13.5% 13.8% 14.1% 13.9% 14.2% 14.5% 14.7% Source: IDC, Barclays Research estimates

Figure 47: x86 server shipments and market share by vendor x86 Unit Shipment (Units in 000) Vendor 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 Hewlett-Packard 515 510 601 700 656 623 693 756 680 703 685 695 678 Dell 379 403 452 478 505 534 492 516 509 507 517 573 504 IBM 197 215 221 283 235 255 257 298 241 258 276 298 246 Fujitsu 23 48 66 66 75 59 73 74 74 70 78 69 85 Cisco - - 2 2 6 11 13 17 22 32 39 45 53 NEC 43 29 38 39 39 28 36 35 35 30 37 32 37 Lenovo 11 16 18 24 16 24 27 32 28 35 47 49 28 Sugon 7 7 8 8 7 8 11 12 15 13 19 27 23 Inspur 9 11 11 16 10 13 14 28 13 17 20 26 15 Huawei ------5 15 18 20 12 Others 266 247 264 304 270 285 294 312 261 277 286 302 264 Worldwide 1,449 1,485 1,680 1,920 1,820 1,840 1,910 2,080 1,885 1,958 2,022 2,135 1,946 x86 Unit Share Trends Vendor 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 Hewlett-Packard 35.5% 34.3% 35.8% 36.4% 36.1% 33.9% 36.3% 36.4% 36.1% 35.9% 33.9% 32.6% 34.9% Dell 26.2% 27.2% 26.9% 24.9% 27.8% 29.0% 25.8% 24.8% 27.0% 25.9% 25.6% 26.8% 25.9% IBM 13.6% 14.5% 13.1% 14.7% 12.9% 13.9% 13.5% 14.3% 12.8% 13.2% 13.7% 14.0% 12.6% Fujitsu 1.6%3.2%3.9%3.4%4.1%3.2%3.8%3.6%4.0%3.6%3.8%3.3%4.4% Cisco 0.0% 0.0% 0.1% 0.1% 0.4% 0.6% 0.7% 0.8% 1.2% 1.6% 1.9% 2.1% 2.7% NEC 3.0%1.9%2.2%2.1%2.2%1.5%1.9%1.7%1.9%1.6%1.8%1.5%1.9% Lenovo 0.8% 1.1% 1.1% 1.2% 0.9% 1.3% 1.4% 1.6% 1.5% 1.8% 2.3% 2.3% 1.5% Sugon 0.5%0.5%0.5%0.4%0.4%0.5%0.6%0.6%0.8%0.7%1.0%1.3%1.2% Inspur 0.6% 0.7% 0.7% 0.9% 0.5% 0.7% 0.7% 1.3% 0.7% 0.9% 1.0% 1.2% 0.7% Huawei 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.3% 0.8% 0.9% 0.9% 0.6% Others 18.4% 16.6% 15.7% 15.8% 14.8% 15.5% 15.4% 15.0% 13.9% 14.2% 14.2% 14.1% 13.6% Source: IDC, Barclays Research estimates

26 May 2012 24 Barclays | The Asia PC Pulse (Issue No. 37)

Figure 48: Barclays Research’s tablet PC shipment targets by NB ODM/PC brand Company Actual Shipment (2011) Shipment target from company (2012E) OEM customers NB ODMs Compal 1.6mn 1.5-2mn Lenovo, Dell, Acer, HP Quanta* 5mn 10mn Amazon, RIM Asustek, HTC, Barnes & Noble(from Wistron 1mn 3mn-4mn 2Q12), Acer Inventec less than 1mn units 2.5mn-3mn* Barnes & Noble Pegatron 1.5-2mn units 10mn* Asustek, Toshiba, iPad 4 (reported), Acer

Tablet vendors Assembly Acer 2mn 2mn Compal, Wistron

Asustek 1.8mn 3mn Wistron, Pegatron

Lenovo* 0.6mn 1.5mn* Compal, Wistron HTC* 0.2mn 0.8mn* Pegatron Samsung* 6.1mn 13.1mn* Inhouse Apple* 40.5mn 62mn* Hon Hai Amazon* 5-6mn 15.3mn units* (incl. e-reader) Quanta (Kindle Fire), Hon Hai (Kindle) RIM* 1mn* 1mn* Quanta MOTO* 1mn* 1.3mn* Inhouse

* Shipments are based on Barclays Research estimates, not company guidance. Source: Company data, Barclays Research estimates

26 May 2012 25 Barclays | The Asia PC Pulse (Issue No. 37)

Figure 49: Barclays Asia ex-Japan Technology Hardware Research – tablet PC buyer/supplier matrix Launch Company Product ODM Display Op System CPU Memory Storage Weight Battery Life Price Other features time Acer ICONIA Tab Wistron/Compal 10.1", Android 4.0 NVIDIA Tegra 2 (ARM) 1GB 8GB/16GB 720g 8 hours (400 US$349 Camera: 2MP (front) Jan'12 A200 1280x800 1GHz Dual Core hours of standby) Acer ICONIA Tab Wistron/Compal 10.1", Android 4.0 NVIDIA Tegra 3 (ARM) 1GB 16/32/64GB N/A 8 hours (400 US$500 5MP camera 1Q12 A510/A511 1280x800 1.3GHz Qual Core SSD hours of standby) Acer ICONIA Tab Wistron/Compal 10.1", Android 4.0 NVIDIA Tegra 3 (ARM) 2GB 16/32/64GB 650g 9800mAh/10 US$720 5MP camera May'12 A700 1920x1200 1.3GHz Qual Core SSD hours Apple "iPad mini" Hon Hai 7.85", Apple iOS TBD TBD TBD TBD TBD US$200-250 (TBD) TBD 4Q12 2048x1536 (TBD) Apple iPad 2 Hon Hai 9.7", Apple iOS Apple A5 (ARM) 1GHz 512MB RAM 16/32/64GB 601-613g 10 hours Wi-Fi: US$399; 3G: Dual camera, 33% 11 1024x768 4.3 Dual Core SSD (25Whr) US$529 thinner, 15% lighter, Mar'11 Smart cover Apple "New" iPad Hon Hai 9.7", Apple iOS Apple A5X Quad core 512MB RAM 16/32/64GB 652-662g 10 hours Wi-Fi: US$499-699; Dual camera: 5MP (rear) 1Q12 2048x1536 SSD (42.5Whr) 4G: US$629-829 Amazon Kindle Fire Quanta, Hon Hai 7", 1024x600 Android 2.3 TI OMAP 4 (ARM) 1GHz 512MB RAM 8GB 413g 8 hours US$199 N/A Nov'11 from 2012 Amazon Kindle Fire 2 Quanta, Hon Hai 8.9" Android 2.3 TBD TBD TBD TBD TBD US$249 N/A 2Q11 Amazon Kindle Touch Hon Hai 6", 800x600 E Linux Freescale i.MX515 (ARM) 256MB RAM 4GB 213g 2 months US$99 (WiFi-only); N/A Nov'11 Ink 800MHz (WiFi- US$149 (3G+WiFi) only); 221g (3G+WiFi) Amazon Kindle Hon Hai 6", 800x600 E Linux Freescale i.MX515 (ARM) 256MB RAM 2GB 170g 1 months US$79 N/A Sep'11 Ink 800MHz Asustek EeePad MeMO Pegatron 7", 1024x600 Android 3.0 NVIDIA Tegra 2/ 512MB 8GB-64GB N/A N/A US$499-699 Dual camera: 5MP (rear); 4Q11 Qualcomm Snapdragon SDRAM Flash 1.2MP (front); Support (ARM) Adobe Flash; 3D Asustek Transformer 300 Pegatron 10", Android 4.0 NVIDIA Tegra 3 (ARM) 1GB 16GB Flash 635g 10 hours (15 US$399 Dual camera: 8MP (rear); Apr'12 1280x800 1.2GHz Quad Core hours with dock) 1.2MP (front); 4G Asustek Transformer Pegatron 10.1", Android 4.0 Qualcomm Snapdragon 1GB 16/32/64GB 586g 10 hours (16 US$700 Dual camera: 8MP (rear); 2Q12 Infinity 1920x1200 S4 8960 1.5GHz Quad- hours with dock) 2MP (front); core Asustek Nexus Tablet Pegatron TBD Android 4.0 TBD TBD TBD TBD TBD US$199 TBD 2Q12 Asustek Transformer Pegatron 10", Android 3.2 NVIDIA Tegra 3 (ARM) 1GB RAM 32GB/64GB 586g 12 hours (18 US$499/599 for Dual camera: 8MP (rear); Jan'12 Prime 1280x800 1.3GHz Quad Core Flash hours pad with 32GB/64GB (optional 1.2MP (front); Support dock) dock at $149) Adobe Flash; 3D Asustek Transformer Pegatron 10", Android 3.2 NVIDIA Tegra 3 (ARM) 1GB RAM 32GB/64GB 586g 12 hours (18 US$599/699 for Dual camera: 8MP (rear); Jan'12 Prime TF700T 1920x1200 1.3GHz Quad Core Flash hours pad with 32GB/64GB (optional 2MP (front); Support dock) dock at $149) Adobe Flash; 3D Asustek MeMO Wistron 7", 1280x800 Android 4.0 NVIDIA Tegra 3 (ARM) 1GB 16/32GB 400g 8.5 hours US$249 Dual camera: 5MP (rear); 2Q12 370T/371 1.3GHz Quad Core 1.2MP (front); Support Adobe Flash; 3D Asustek TF300T/TF700T Wistron 10" Android 4.0 NVIDIA Tegra 3 (ARM) 1GB 16/32GB TBD TBD TBD TBD 2Q12 1.3GHz Quad Core / Qualcomm Source: Company data, Barclays Research

26 May 2012 26 Barclays | The Asia PC Pulse (Issue No. 37)

Figure 49: Barclays Asia ex-Japan Technology Hardware Research – tablet PC buyer/supplier matrix (continued) Launch Company Product ODM Display Op System CPU Memory Storage Weight Battery Life Price Other features time Asustek MeMO 171T Wistron 7", 1280x800 Android 4.0 Qualcomm Snapdragon 1GB 32/64GB 400g 8.5 hours US$399/499 Dual camera: 5MP (rear); 2Q12 (ARM) 1.2GHz Dual Core SSD 1.2MP (front); Support Adobe Flash; 3D Barnes and Nook Tablet Inventec 7", 1024x600 Android TI OMAP4 1GHz 1GB RAM 16GB Flash 400g 11.5 hours US$249 N/A Nov'11 Noble Cisco Cuis N/A 7", 1024x600 Android Intel Atom 1.6GHz 1GB RAM 32GB Flash 520g 5,200mAh US$900-1,000 Dual camera: 5MP (rear); early 8 hours 720P (front) 1H11 Dell Streak 7 Qisda 7", 800x480 Android 2.2 NVIDIA Tegra 2 (ARM) 4GB SDRAM 16/32GB 500g 2,100mAh US$399 Dual camera: 5MP (rear); 1Q11 Flash 1.3MP (front) HP Slate 8 Compal 10.1", Windows 8 TBD TBD 16/32GB 680g 8-10 hours TBD TBD 3Q'12 1280x768 HTC Jetstream N/A 10.1", Android 3.1 Qualcomm Snapdragon N/A N/A 708g 7,300mAh US$699 Dual camera: 8MP (rear); Sep'11 1280x768 (ARM) 1.5GHz Dual Core 1.3MP (front); 4G/LTE HTC Flyer Pegatron 7", 1024x600 Android 2.4 Qualcomm Snapdragon 1GB RAM 32GB Flash 420g 4000mAh US$499 Dual camera: 5MP (rear); Apr'11 (ARM) 1.5GHz 6 hours 1.3MP (front); With stylus Huawei MediaPad N/A 7", 1280x800 Android 3.2 Qualcomm Snapdragon 1GB RAM 8GB Flash 390g 4100mAh US$430 Dual camera: 5MP (rear); Sep'11 (ARM) 1.2GHz Dual Core 6 hours 1.3MP (front); With stylus Lenovo LePad A1 Compal/Wistron 7", 1024x600 Androd 2.3 TI OMAP3622 (ARM) 512MB RAM 2GB/16GB 400g N/A US$156 for 2GB; Dual camera: 3MP (rear); Aug'11 1GHz US220 for 16GB VGA (front) Lenovo IdeaPad A1 Compal/Wistron 7", 1024x600 Androd 2.3 TI OMAP3622 (ARM) 512MB RAM 8GB/16GB 400g N/A US$199 for 8GB; Dual camera: 3MP (rear); Sep'11 1GHz US249 for 16GB VGA (front) Lenovo LePad Compal/Wistron 10.1", Android Qualcomm Snapdragon 1GB RAM 16/32/64GB 760g 8 hours Wi-Fi only: 2MP camera; SIM card Mar'11 in 1280x800 2.2/LeOS (ARM) 1.3GHz Flash RMB3,499/US$532 slot; Support Adobe Flash China; 2.0 (16G); Jun'11 RMB3,999/US$608 globally (32G) Lenovo ThinkPad Tablet Compal/Wistron 10.1", Android 3.1 NVIDIA Tegra 2 (ARM) 1GB RAM 16/32/64GB 750g 10 hours US$479(16G); Dual camera: 5MP (rear); Aug'11 1280x800 1GHz Dual Core Flash (US$509 with 2MP (front); digitizer pen; digitizer pen) USB Lenovo IdeaPad K1 Compal/Wistron 10.1", Android 3.1 NVIDIA Tegra 2 (ARM) 1GB RAM 16/32/64GB 750g 10 hours US$499 (32G) Dual camera: 5MP (rear); Jul'11 1280x800 1GHz Dual Core Flash 2MP (front); HDMI port Lenovo IdeaPad P1 Compal/Wistron 10.1", Windows 7 Intel Oak Trail Z670 2GB RAM 16/32/64GB 900g 6 hours N/A 2MP camera (front); USB 4Q11 1280x800 1.5GHz Flash Lenovo IdeaPad U1 Hybrid Compal/Wistron 10.1", Windows 7/ Intel Core i5 1.2GHz 1GB RAM 16/32GB N/A N/A US$1,000 2MP camera; SIM card 4Q11 in 1280x800 Android 2.2 (Dock)/Qualcomm Flash slot; Turn into Windows 7 China Snapdragon 1.3GHz OS when connected to a (Tablet) stationing dock Lenovo LePad S2005 Compal/Wistron 5" 800x480 Android 2.3 Qualcomm Snapdragon 1GB RAM 8GB Flash 198g 1680mAh US$399 Dual camera: 5MP (rear); 1Q12 (ARM) 1.2GHz Dual Core 1.3MP (front) Lenovo LePad S2007 Compal/Wistron 7" 1280x800 Android 3.2 Qualcomm Snapdragon 1GB RAM 16GB Flash 356g 3780mhA / 8 US$549 Dual camera: 8MP (rear); 1Q12 (ARM) 1.5GHz Dual Core hours 1.3MP (front) Lenovo LePad S2010 Compal/Wistron 10" 1280x800 Android 3.2 Qualcomm Snapdragon 1GB RAM 16GB Flash 670g 7560mhA / 11 US$649 Dual camera: 8MP (rear); 1Q12 (ARM) 1.5GHz Dual Core hours 1.3MP (front) Lenovo LePad K2 Compal/Wistron 10.1", Android 4.0 NVIDIA Tegra 3 (ARM) 2GB N/A N/A N/A N/A N/A 1Q12 1920x1200 1.3GHz Qual Core LG G-Slate/ Optimus In-house 8.9", Android 3.0 NVIDIA Tegra 2 (ARM) N/A 32GB Flash 650g 6,400mAh US$750 Dual camera: 5MP (rear); Apr'11 in Pad 1280x768 Dual Core 7.5 hours 2MP (front); 3D video US recording; HDMI port Source: Company data, Barclays Research

26 May 2012 27 Barclays | The Asia PC Pulse (Issue No. 37)

Figure 49: Barclays Asia ex-Japan Technology Hardware Research – tablet PC buyer/supplier matrix (continued) Launch Company Product ODM Display Op System CPU Memory Storage Weight Battery Life Price Other features time MOTO Xoom In-house 10.1", Android 3.0 NVIDIA Tegra 2 (ARM) 1GB RAM 32GB Flash N/A N/A US$699 (3G); US$499 Dual camera: 5MP (rear); 22 Feb'11 1280x800 1GHz Dual Core (Wi-Fi only) 2MP (front), HDMI, USB in US MOTO Xoom 2 (8.2") In-house 8.2", Android 3.2 TI OMAP4430 1.2GHz 1GB RAM 16/32GB 386g 3960mAh/6 US$399 (Wi-Fi only) 5MP front camera, and Dec'11 1280x800 dual core hours 1.3MP rear camera, HDMI port MOTO Xoom 2 (10.1") In-house 10.1", Android 3.2 TI OMAP4430 1GHz dual 1GB RAM 16/32GB 599g 7000mAh/10 US$499 (Wi-Fi only) 5MP front camera, and Dec'11 1280x800 core hours 1.3MP rear camera, HDMI port MSI WindPad 100A MSI 10.1", Android 3.0 NVIDIA Tegra 2 (ARM) 512MB RAM 8/16GB Flash 800g 8-10 hours Below US$500 1.3MP front camera, and Jul'11 1024x600 rear camera, HDMI port MSI WindPad 110W MSI 10.1", Windows 7 AMD Brazos APU Dual 2GB RAM 32GB HDD 800g 5-6 hours US$700 1.3MP front camera, and Jul'11 1024x600 Core rear camera, HDMI port MSI WindPad Enjoy 7 MSI 7", 800x480 Android 2.3 NVIDIA Tegra 2 (ARM) 512MB RAM 4GB Flash 395g 7 hours US$230 2MP front camera, and Sep'11 1GHz Dual Core rear camera, HDMI port RIM PlayBook Quanta 7'', 1024x600 RIM OS ARM, Dual-core Cortex A9 1GB RAM 16/32/64GB 400g N/A US$499 (16G), 599 Dual camera: 5MP (rear); 19 Apr'11 (QNX) Flash (32G), 699 (64G) 3MP (front); Support Adobe Flash Samsung Sliding Series 7 In-house 10.1", Windows 7 Intel Oak Trail Z670 2GB RAM 32GB Flash 998g 9 hours US$649 Dual camera: 3MP (rear); May'11 1366x768 1.5GHz 1.3MP (front) Samsung Galaxy Note In-house 5.3" Android 2.3 1.4GHz Dual Core 1GB RAM 16/32GB 178g 2,500mAh US$735 Dual camera: 8MP (rear); Nov'11 1280x800 HD Flash 2MP (front) Super AMOLED Samsung Galaxy Note 10.1 In-house 10.1" Android 4.0 1.4GHz Dual Core 1GB RAM 16/32/64GB 585g 7,000mAh TBD Dual camera: 8MP (rear); 2Q12 1280x800 Flash 2MP (front) TFT Samsung Galaxy Tab 2 In-house 7", 1024x600 Android 3.2 NVIDIA Tegra 2 (ARM) 1GB RAM 32GB 344g 4,000mAh/8 TBD Dual camera: 3MP (rear); Mar'12 1GHz Dual Core hours 0.3MP (front) Samsung Galaxy Tab 7.0 In-house 7", 1024x600 Android 3.2 1.2GHz Dual Core 1GB RAM 16/32GB 345g 4,000mAh/8 US$399 (16GB); Dual camera: 3MP (rear); Nov'11 Plus Flash hours US$499 (32GB) 2MP (front) Samsung Galaxy Tab 7.7 In-house 7.7", Android 3.2 1.4GHz Dual Core 1GB RAM 16/32/64 GB 335g 5,100mAh/10 USD$550 (16GB Dual camera: 3MP (rear); Dec'11 1280x800 Flash hours WiFi); USD$680 2MP (front) Super (16GB WiFi+3G) AMOLED Plus Samsung Galaxy Tab 8.9 In-house 8.9", Android 3.0 NVIDIA Tegra 2 (ARM) 1GB RAM 16/32GB 467g 6000mAh US$469(16G); Dual camera: 3MP (rear); Jun'11 1280x800 1GHz Dual Core Flash 10 hours US$569(32G) 2MP (front); HSPA+; 8.6mm thin Samsung Galaxy Tab 10.1 In-house 10.1", Android 3.0 NVIDIA Tegra 2 (ARM) 1GB RAM 16/32GB 595g 6860mAh US$499(16G), Dual camera: 3MP (rear); May'11 1280x800 1GHz Dual Core Flash 10 hours US$599(32G) 2MP (front); HSPA+; 8.6mm thin Sony Tablet S (S1) Hon Hai 9.4", Android 3.0 NVIDIA Tegra 2 (ARM) 1GB RAM 16/32GB 625g 5000mAh US$400(16G); Dual camera: 5mp (rear), Sep'11 1280x800 1GHz Dual Core Flash US$500(32G) 0.3mp (front), USB port, 4G Sony Tablet P (S2) N/A 5.5", dual Android 3.0 NVIDIA Tegra 2 (ARM) 1GB RAM 4GB Flash 372g 3080mAh US$630 Dual camera, USB port, Nov'11 screen, 1GHz Dual Core 4G 1024x480 Source: Company data, Barclays Research

26 May 2012 28 Barclays | The Asia PC Pulse (Issue No. 37)

Figure 49: Barclays Asia ex-Japan Technology Hardware Research – tablet PC buyer/supplier matrix (continued) Launch Company Product ODM Display Op System CPU Memory Storage Weight Battery Life Price Other features time Toshiba AT200 / Excite Quanta 10.1", Android 3.2 TI OMAP4430 1GHz dual 1GB RAM 32GB 535g 8 hours US$529 Dual camera: 5mp (rear), 4Q11 X10 1280x800 core 2mp (front), SD, HDMI ViewSonic ViewPad 10pro Hon Hai 10.1", Dual OS Intel Oak Trail Z670 2GB RAM 32GB Flash 800g 6 hours US$629 1.3MP camera, HDMI May'11 1024x600 (Windows 1.5GHz port, USB, SD card reader, 7/Android Adobe Flash 2.2) Vizio Via Tablet Hon Hai 8", 1024x768 Android 2.2 Qualcomm Snapdragon 512MB RAM 2GB Flash N/A N/A N/A Dual camera: 5MP (rear); Mar'11 (ARM) QSD8250 1 GHz 0.3MP (front) ZTE Light Tab II N/A 7", 1024x600 Android 2.3 Qualcomm Snapdragon 4GB RAM 32GB Flash 402g 10 hours US$340 (Rmb2,300) Dual camera; FM radio 2Q12 (ARM) QSD8255 1 GHz Source: Company data, Barclays Research

Figure 50: Barclays Asia ex-Japan Technology Hardware Research – China white-box tablet PCs Launch Company Product ODM Display Op System CPU Memory Storage Weight Battery Life Price Other features time Aigopad Aigopad N700 In-house 7" Android 2.1 NVIDIA Tegra 2 (ARM) 512MB RAM 4/16/32GB 465g 3,120mAh N/A MicroSD, USB port, HDMI, Launched 1GHz Dual Core HDD 1.3MP camera in China AINOL V8000HDX In-house 7", 800x480 N/A N/A N/A 16GB HDD N/A N/A RMB930 MicroSD, USB port, HDMI Launched (US$142) in China AINOL V5000G In-house 5" N/A N/A N/A 8GB HDD N/A N/A RMB499 (US$76) MicroSD Launched in China ALEO A802 In-house 8", 1280x768 N/A N/A N/A 4GB HDD N/A N/A RMB599 (US$91) MicroSD, USB port Launched in China BMORN V99 In-house 9.7" 1024x768 Android 2.3 All Winner A10 1.2GHz 1GB RAM 16GB Flash 585g RMB1500 HDMI, microSD 1Q12 (US$240) EPAD Android WiFi In-house 7" Android 2.2 600MHz N/A 2GB HDD N/A N/A RMB799 Wi-Fi, USB port, Support Launched 8650 (US$122) Flash in China EPAD Android WiFi 803 In-house 8" Android 2.2 1.0GHz 512MB RAM 4GB HDD N/A N/A RMB1,380 Wi-Fi, USB port, Support Launched (US$210) Flash in China Foxconnect Cortex A9 In-house 10", 1024x600 Android 2.2 NVIDIA Tegra 2 (ARM) 512MB RAM 512MB Flash N/A 3,300mAh, US$250 USB port, HDMI, 1080p Launched Android Pad 1GHz Dual Core 7 hours video playback in China MicroBee Android WiFi In-house 7" Android 2.1 1.2GHz Dual Core N/A 8GB HDD N/A N/A RMB1,198 Wi-Fi, USB port, HDMI Launched 7100 (US$182) port, Support Flash in China Malata Zpad In-house 10", 1024x600 Android 2.2 NVIDIA Tegra 2 (ARM) 1GB RAM 16GB/32GB 810g 3,500mAh, RMB2,880 USB port, HDMI, 1.3MP Launched 1GHz Dual Core 6 hours (US$435) camera, Support Flash in China Yuandao N90 In-house 9.7", Android 4.0 Rockchip RK2918 1GHz 1GB RAM 16GB 630g 8000mAh RMB999/US$130 Dual camera: 2MP (rear); 1Q12 1024x768 (8GB); 0.3MP (front); USB, RMB1,299 microSD /US$190 (16GB) Source: Company data, Barclays Research

26 May 2012 29 Barclays | The Asia PC Pulse (Issue No. 37)

Figure 51: Tablet PC pricing in China

Company Product Storage Price (RMB) Price (USD)

Lenovo LePad 16G 3,499 547 LePad 32G 3,999 625

Apple iPad1 16G 2,888 451 iPad1 32G 3,688 576 iPad1 64G 4,488 701 iPad2 16G 3,688 576 iPad2 32G 4,488 701 iPad2 64G 5,288 826

Motorola Xoom 32G 4,999 781

Source: Company data, Barclays Research

Figure 52: Evolution of mobile standards

Mobile standards 3GPP Qualcomm China IEEE Sprint, Verizon Wireless, Majority of global carriers, Carrier China Telecom, some China Mobile Sprint AT&T, T-Mobile US Indian telecom carriers GSM: 2G 2G: GPRS: 2.5G CDMA One digital+data services EDGE: 2.75G

Release 4: UMTS 3G CDMA2000 EVDO rev 0

Release 5: HSDPA 3.5G CDMA2000 EVDO rev A (up to 21Mbps downlink) (up to 3G: TD-SCDMA (up to 2Mbps) at least 200 kbps Release 6: HSUPA 3.5G (up to 5.8Mbps uplink) EVDO rev C WiMAX 3.9G

Release 7: HSPA+ 3.5G Release 8/9: LTE 3.9G Sprint moving to WiMax; 4G: Release 10: LTE Advanced Verizon moving to 3GPP TD-LTE WiMAX 4G at least 100 Mbps, IP-based LTE Source: Company data, Barclays Research

26 May 2012 30 Barclays | The Asia PC Pulse (Issue No. 37)

Figure 53: Barclays Asia ex-Japan Technology Hardware Research – ultrabook buyer/supplier matrix

Company Product ODM Display OS CPU Memory Storage Weight Thickness Battery Life Price Other Features Launch Time 11.6" 11.6" 5 hours / 30 days Thunderbolt port, Apple Quanta Mac OS Core i5-2467M 1.6GHz 2GB DDR3 64GB 1.08kg 3 to 17mm US$999 Jul-11 MacBook Air (1366x768) standby / 35Wh USB 2.0 11.6" 11.6" 5 hours / 30 days Thunderbolt port, Apple Quanta Mac OS Core i5-2467M 1.6GHz 4GB DDR3 128GB SSD 1.08kg 3 to 17mm US$1,199 Jul-11 MacBook Air (1366x768) standby / 35Wh USB 2.0 13.3" 13.3" 7 hours / 30 days Thunderbolt port, SD Apple Quanta Mac OS Core i5-2557M 1.7GHz 4GB DDR3 128GB SSD 1.35kg 3 to 17mm US$1,299 Jul-11 MacBook Air (1440x900) standby / 50Wh Card, USB 2.0 13.3" 13.3" 7 hours / 30 days Thunderbolt port, SD Apple Quanta Mac OS Core i5-2557M 1.7GHz 4GB DDR3 256GB SSD 1.35kg 3 to 17mm US$1,599 Jul-11 MacBook Air (1440x900) standby / 50Wh Card, USB 2.0 13.3" 13.3" Thunderbolt port, SD Apple Quanta Mac OS Core i5-2430M 2.4GHz 4GB DDR3 500GB HDD 2.04kg 24.1mm 7 hours US$1,199 Oct'11 MacBook Pro (1280x800) Card, USB 2.0 13.3" 13.3" Thunderbolt port, SD Apple Quanta Mac OS Core i7-2640M 2.8GHz 4GB DDR3 750GB HDD 2.04kg 24.1mm 7 hours US$1,499 Oct'11 MacBook Pro (1280x800) Card, USB 2.0 15.4" 15.4" Thunderbolt port, SD Apple Quanta Mac OS Core i7-2675QM 2.2GHz 4GB DDR3 500GB HDD 2.54kg 24.1mm 7 hours US$1,799 Oct'11 MacBook Pro (1440x900) Card, USB 2.0 15.4" 15.4" Thunderbolt port, SD Apple Quanta Mac OS Core i7-2760QM 2.4GHz 4GB DDR3 750GB HDD 2.54kg 24.1mm 7 hours US$2,199 Oct'11 MacBook Pro (1440x900) Card, USB 2.0 Thunderbolt port, 17" Macbook 17" Apple Quanta Mac OS Core i7-2760QM 2.4GHz 4GB DDR3 750GB HDD 2.99kg 25mm 7 hours US$2.499 ExpressCard/3 4 Slot, Oct'11 Pro (1920x1200) USB 2.0 13.3" 320GB HDD + 7 hours / 50 days HDMI, SD Card, USB Acer Aspire S3 Wistron Win 7 Core i5-2467M 1.6GHz 4GB DDR3 1.35kg 13mm US$899 Sep-11 (1366x768) 20GB SSD standby 2.0 13.3" 320GB HDD + 7 hours / 50 days HDMI, SD Card, USB Acer Aspire S3 Wistron Win 7 Core i7-2637M 1.7GHz 4GB DDR3 1.35kg 13mm US$1,080 Sep-11 (1366x768) 20GB SSD standby 2.0 13.3" 7 hours / 50 days HDMI, SD Card, USB Acer Aspire S3 Compal Win 7 Core i5-2467M 1.6GHz 4GB DDR3 240GB SSD 1.35kg 13mm US$1,280 Sep-11 (1366x768) standby 2.0 Thunderbolt, 13.3" Acer Aspire S5 Compal Win 7 Intel Ivy Bridge TBD SSD 1.35kg 15mm TBD TBD MagicFlip I/O, HDMI, 2Q12 (1366x768) USB 3.0 HDMI, SD Card, USB Acer Timeline Ultra Wistron/Compal 14" Win 7 Intel Sandy Bridge TBD SSD/HDD hybrid TBD 20mm 8 hours TBD 1Q12 3.0 HDMI, SD Card, USB Acer Timeline Ultra Wistron/Compal 15" Win 7 Intel Sandy Bridge TBD SSD/HDD hybrid TBD 20mm 8 hours TBD 1Q12 3.0 Zenbook Pegatron (till Mar'12); 11.6" 5 hours / 10 days min-DisplayPort, Asustek Win 7 Core i5-2467M 1.7GHz 4GB DDR3 128GB SSD 1.09kg 17mm US$999 Oct-11 UX21 Wistron/Compal (1366x768) standby / 35Wh mini-HDMI, USB 3.0 Zenbook Pegatron (till Mar'12); 11.6" 5 hours / 10 days min-DisplayPort, Asustek Win 7 Core i7-2677M 1.8GHz 4GB DDR3 128GB SSD 1.09kg 17mm US$1,199 Oct-11 UX21 Wistron/Compal (1366x768) standby / 35Wh mini-HDMI, USB 3.0 Zenbook Pegatron (till Mar'12); 13.3" 7hours / 10 days min-DisplayPort, Asustek Win 7 Core i5-2467M 1.6GHz 4GB DDR3 128GB SSD 1.32kg 17mm US$1,049 Oct-11 UX31 Wistron/Compal (1600x900) standby / 50Wh mini-HDMI, USB 3.0 Zenbook Pegatron (till Mar'12); 13.3" 7hours / 10 days min-DisplayPort, Asustek Win 7 Core i5-2557M 1.7GHz 4GB DDR3 128GB SSD 1.32kg 17mm US$1,099 Oct-11 UX31 Wistron/Compal (1600x900) standby / 50Wh mini-HDMI, USB 3.0 Zenbook Pegatron (till Mar'12); 13.3" 7hours / 10 days min-DisplayPort, Asustek Win 7 Core i5-2557M 1.7GHz 4GB DDR3 256GB SSD 1.32kg 17mm US$1,349 Oct-11 UX31 Wistron/Compal (1600x900) standby / 50Wh mini-HDMI, USB 3.0 Zenbook Pegatron (till Mar'12); 13.3" 7hours / 10 days min-DisplayPort, Asustek Win 7 Core i7-2677M 1.8GHz 4GB DDR3 256GB SSD 1.32kg 17mm US$1,449 Oct-11 UX31 Wistron/Compal (1600x900) standby / 50Wh mini-HDMI, USB 3.0 Zenbook (2nd 13.3" Asustek Wistron/Compal Win 7 Intel Ivy Bridge 4GB DDR3 256GB SSD TBD TBD TBD US$699+ TBD Jun-12 Gen) (1600x900) HDMI, mini Display, 11.6" Core i5-2467M / i7- Dell XPS 13 Compal Win7 4GB DDR3 128GB SSD 1.36kg 18mm 8 hours / 47Wh US$999 USB 3.0, Corning Feb-12 (1366x768) 2637M Gorilla Glass Dell 14" Ultrabook Quanta 14" Win7 Intel Ivy Bridge TBD TBD TBD TBD TBD TBD TBD Late 2Q12 Source: Company data, Barclays Research

26 May 2012 31 Barclays | The Asia PC Pulse (Issue No. 37)

Figure 53: Barclays Asia ex-Japan Technology Hardware Research – ultrabook buyer/supplier matrix (continued)

Company Product ODM Display OS CPU Memory Storage Weight Thickness Battery Life Price Other Features Launch Time Dell 15" Ultrabook Quanta 15" Win 7 Intel Ivy Bridge TBD TBD TBD TBD TBD TBD TBD 2Q12 HP Evny 4 Compal 14" (1366x768) Win 7 Core i3-2367M 1.4GHz 4GB DDR3 500GB HDD 1.75kg 19.8mm 8 hours US$699 HDMI, USB 3.0 May-12 15.6" HP Envy 6 Compal Win 7 Core i5-2467M 1.6GHz 4GB DDR3 500GB HDD 2.15kg 19.8mm 9 hours US$799 HDMI, USB 3.0 May-12 (1366x768) 13.3" HP Folio 13 Quanta Win 7 Core i5-2467M 1.6GHz 4GB DDR3 128GB SSD 1.49kg 18mm 9 hours US$899 HDMI, VGA, USB 3.0 Dec-11 (1366x768) Envy Spectre 13.3" HP Quanta Win 7 Intel Ivy Bridge 4GB DDR3 128GB SSD 1.4kg 14.5mm 8 hours US$999 HDMI, VGA, USB 3.0 Jun-12 XT (1366x768) min-DisplayPort, mini- Envy 14 HP Quanta 14" (1600x900) Win 7 Core i5-2467M 1.6GHz 4GB DDR3 128GB SSD 1.8kg 20mm 9.5 hours US$1,399 HDMI, USB 3.0, Corning Feb-12 Spectre Gorilla Glass 13.3" 8 hours / 30 days Lenovo U300s Wistron, Compal Win 7 Core i5-2457M 1.6GHz 4GB DDR3 256GB SSD 1.32kg 14.9mm US$1,049 HDMI, VGA, USB 3.0 Dec-11 (1366x768) standby 13.3" 8 hours / 30 days Lenovo U300s Wistron, Compal Win 7 Core i7-2677M 1.8GHz 4GB DDR3 256GB SSD 1.32kg 14.9mm US$1,499 HDMI, VGA, USB 3.0 Dec-11 (1366x768) standby 13.3" 500GB HDD + Lenovo U300e Wistron, Compal Win 7 Core i5-2467M 1.6GHz 4GB DDR3 1.58kg 18.3mm 7 hours US$799 HDMI, VGA, USB 3.0 Feb-12 (1366x768) 32GB SSD 13.3" Lenovo U310 Wistron, Compal Win 7 Intel Ivy Bridge 4GB DDR3 500GB HDD 1.7kg 18.3mm 46Wh US$699 HDMI, VGA, USB 3.0 May-12 (1366x768) Lenovo U410 Wistron, Compal 14" (1366x768) Win 7 Intel Ivy Bridge 8GB DDR3 500GB HDD 1.8kg 21mm 59Wh US$799 HDMI, VGA, USB 3.0 May-12 13.3" HDMI, mini Display, USB Lenovo X1 Hybrid Wistron, Compal Win 7 Core i3-2350M 2.3GHz 4GB DDR3 128GB SSD 1.69kg 16mm 5.2hours US$1,299 Jan-12 (1366x768) 3.0, Corning Gorilla Glass 13.3" HDMI, mini Display, USB Lenovo X1 Hybrid Wistron/Compal Win 7 Core i5-2520M 2.5GHz 4GB DDR3 160GB SSD 1.69kg 16mm 5.2hours US$1,449 Jan-12 (1366x768) 3.0, Corning Gorilla Glass 128GB SSD HDMI, mini Display, USB Lenovo X1 Carbon Wistron/Compal 14" (1600x900) Win 7 Intel Ivy Bridge 4GB DDR3 1.36kg 18mm TBD US$999 Jun-12 (various options) 3.0, 3G 13.3" Multi-touch, 360 deg flip- Lenovo IdeaPad Yoga TBD Win 8 Intel Ivy Bridge 8GB DDR3 256GB SSD 1.47kg 16.9mm TBD US$1,199 2H12 (1600x900) and-flop Series 5 13.3" 500GB HDD + Samsung Quanta Win 7 Core i5-2467M 1.6GHz 4GB DDR3 1.38kg 14.9mm 45Wh US$899 HDMI, VGA, USB 3.0 1Q12 Ultrabook (1366x768) 16GB SSD Series 5 500GB HDD + HDMI, VGA, USB 3.0, Samsung Quanta 14" (1366x768) Win 7 Core i5-2467M 1.6GHz 4GB DDR3 1.81kg 20.9mm 45Wh US$949 1Q12 Ultrabook 16GB SSD Optical Drive Series 9 13.3" Samsung Quanta Win 7 Core i5-2537M 1.4GHz 4GB DDR3 128GB SSD 1.1kg 12.7mm 7 hours / 47Wh US$1,399 HDMI, VGA, USB 3.0 Jan-12 Ultrabook (1600x900) Series 9 Samsung Quanta 15" (1600x900) Win 7 Core i5-2537M 1.4GHz 4GB DDR3 128GB SSD 1.1kg 15.7mm 7 hours / 47Wh US$1,499 HDMI, VGA, USB 3.0 Feb-12 Ultrabook 11.6" 320GB (various HDMI, VGA, USB 3.0, SD Sony Vaio T11 TBD Win 7 Intel Ivy Bridge 4GB DDR3 1.42kg 17.8mm 9 hours US$900 Jun-12 (1366x768) options) Card 13.3" 320GB (various HDMI, VGA, USB 3.0, SD Sony Vaio T13 TBD Win 7 Intel Ivy Bridge 4GB DDR3 1.6kg 17.8mm 9 hours US$1,040 Jun-12 (1366x768) options) Card 13.3" Toshiba Protege Z830 In-house Win 7 Core i3-2367M 1.4GHz 4GB DDR3 128GB SSD 1.12kg 15.8mm 8 hours / 47Wh US$929 HDMI, VGA, USB 3.0 Nov-11 (1366x768) 13.3" Toshiba Protege Z830 In-house Win 7 Core i5-2557M 1.7GHz 4GB DDR3 128GB SSD 1.12kg 15.8mm 8 hours / 47Wh US1,199 HDMI, VGA, USB 3.0 Nov-11 (1366x768) 13.3" Toshiba Protege Z830 In-house Win 7 Core i7-2677M 1.8GHz 6GB DDR3 128GB SSD 1.12kg 15.8mm 8 hours / 47Wh US1,429 HDMI, VGA, USB 3.0 Nov-11 (1366x768) 13.3" Toshiba Protege Z835 In-house Win 7 Core i3-2367M 1.4GHz 4GB DDR3 128GB SSD 1.12kg 15.8mm 8 hours / 47Wh US$929 HDMI, VGA, USB 3.0 Nov-11 (1366x768) Dell 15" Ultrabook Quanta 15" Win 7 Intel Ivy Bridge TBD TBD TBD TBD TBD TBD TBD 2Q12 HP Evny 4 Compal 14" (1366x768) Win 7 Core i3-2367M 1.4GHz 4GB DDR3 500GB HDD 1.75kg 19.8mm 8 hours US$699 HDMI, USB 3.0 May-12 Source: Company data, Barclays Research

26 May 2012 32 Barclays | The Asia PC Pulse (Issue No. 37)

APPENDIX II: SMARTPHONES

Figure 54: Global handset model (in millions of units) 2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E Units Asia Pacific 248 348 453 495 525 650 770 863 951 1,022 Eastern Europe 77 85 87 97 87 95 98 102 107 111 Western Europe 163 175 191 175 198 198 203 209 221 228 Latin America 102 118 127 143 123 140 162 182 198 207 Middle East & Africa 74 100 119 133 132 145 150 156 164 170 North America 147 164 176 182 190 192 196 202 212 218 Total 812 991 1,153 1,226 1,254 1,419 1,580 1,714 1,854 1,956 YoY Growth Asia Pacific 19% 40% 30% 9% 6% 24% 19% 12% 10% 8% Eastern Europe 16% 11% 1% 12% -11% 10% 4% 4% 5% 4% Western Europe 9% 8% 9% -8% 13% 0% 3% 3% 6% 3% Latin America 38% 16% 8% 13% -14% 14% 16% 12% 9% 5% Middle East & Africa 61% 35% 19% 12% -1% 10% 4% 4% 5% 4% North America 9% 11% 7% 3% 4% 1% 3% 3% 5% 3% Total 19% 22% 16% 6% 2% 13% 11% 8% 8% 5%

Quarterly Handset Market Growth Model (in millions of units) (in millions of units) 2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E 1Q 181 225 259 294 291 323 373 398 432 459 2Q 191 231 273 305 295 338 371 407 446 471 3Q 205 251 291 312 319 356 400 430 463 487 4Q 235 284 330 315 349 402 436 479 513 538 Total Handset Unit Demand 812 991 1,153 1,226 1,254 1,419 1,580 1,714 1,854 1,956 Growth In Unit Demand 19% 22% 16% 6% 2% 13% 11% 8% 8% 5% QoQ 1Q -10% -4% -9% -11% -8% -7% -7% -9% -10% -10% 2Q 5% 3% 5% 4% 1% 5% -1% 2% 3% 3% 3Q 8% 9% 7% 2% 8% 5% 8% 6% 4% 4% 4Q 14% 13% 13% 1% 9% 13% 9% 11% 11% 11% YoY 1Q 18% 24% 15% 14% -1% 11% 16% 7% 9% 6% 2Q 22% 21% 18% 12% -3% 15% 10% 10% 10% 6% 3Q 20% 22% 16% 7% 2% 12% 12% 8% 8% 5% 4Q 18% 21% 16% -5% 11% 15% 8% 10% 7% 5% YoY 1H 20% 23% 17% 13% -2% 13% 13% 8% 9% 6% 2H 19% 22% 16% 1% 7% 13% 10% 9% 7% 5% Source: Industry reports and Barclays Research estimates

Figure 55: Global smartphone model Global Smartphone Shipments 2003-2014E (in millions) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E Feature & Basic Phones 512 660 758 909 1031 1086 1065 1136 1109 1025 947 864 Smartphones 8 20 54 82 122 140 179 283 470 689 908 1090 Total Handsets 520 680 812 991 1,153 1,226 1,244 1,419 1,580 1,714 1,854 1,954 31% 19% 22%16%6%1%14%11%8%8%5% YoY Growth Feature & Basic Phones 29% 15% 20% 13% 5% -2% 7% -2% -8% -8% -9% Smartphones 150% 170% 52% 49% 15% 28% 58% 66% 46% 32% 20% 5yr Growth 55% 39% 42% 41% 45% 44%

Smartphones Penetration 2% 3% 7% 8% 11% 11% 14% 20% 30% 40% 49% 56% Source: Industry reports and Barclays Research estimates

26 May 2012 33 Barclays | The Asia PC Pulse (Issue No. 37)

Figure 56: Global handset market share by vendor Handset Production Estimates (units in millions) 2008 2009 2010 1Q11 2Q11 3Q11 4Q11 2011 1Q12 2Q12E 3Q12E 4Q12E 2012E 2013E 2014E Nokia 468 432 453 109 89 107 114 417 83 80 84 96 343 340 345 Samsung 197 228 280 69 74 89 94 326 91 96 103 103 393 443 498 Apple 162547192017379335282843135176209 LG Electronics 101 118 117 24 25 21 18 88 14 15 16 18 62 82 109 HTC 12122510121310458111314455667 RIM 2334481513111453118773334 Motorola Mobility 100 55 37 9 11 12 10 41 9 9 10 10 38 Sony Ericsson 97 57 43 8 8 10 9 34 Other vendors 213 293 369 111 120 121 130 482 148 160 170 188 666 723 725 Total Handsets 1,226 1,254 1,419 373 371 400 436 1,580 398 407 430 479 1,714 1,854 1,954 YoY Growth 6% 2% 13% 16% 10% 12% 8% 11% 7% 10% 8% 10% 8% 8% 5%

Market Share Estimates 2008 2009 2010 1Q11 2Q11 3Q11 4Q11 2011 1Q12 2Q12E 3Q12E 4Q12E 2012E 2013E 2014E Nokia 38% 34% 32% 29% 24% 27% 26% 26% 21% 20% 20% 20% 20% 18% 18% Samsung 16% 18% 20% 18% 20% 22% 22% 21% 23% 24% 24% 22% 23% 24% 26% Apple 1%2%3%5%5%4%8%6%9%7%7%9%8%9%11% LG Electronics 8%9%8%7%7%5%4%6%3%4%4%4%4%4%6% HTC 1%1%2%3%3%3%2%3%2%3%3%3%3%3%3% RIM 2%3%3%4%4%3%3%3%3%2%2%1%2%2%0% Motorola Mobility8%4%3%2%3%3%2%3%2%2%2%2%2%0%0% Sony Ericsson 8% 5% 3% 2% 2% 2% 2% 2% 0% 0% 0% 0% 0% 0% 0% Other vendors 17% 23% 26% 30% 32% 30% 30% 31% 37% 39% 40% 39% 39% 39% 37% Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Source: Company reports and Barclays Research estimates

Figure 57: Smartphone market share by vendor Smartphone Production Estimates (units in millions) 2008 2009 2010 1Q11 2Q11 3Q11 4Q11 2011 1Q12 2Q12E 3Q12E 4Q12E 2012E 2013E 2014E Nokia 61 68 100 24 17 17 20 77 12 11 13 16 52 70 90 Samsung 724131929369644525861216292369 Apple 162547192017379335282843135176209 HTC 12122510121310458111314455667 RIM 2334481513111453118 7 73334 LG Electronics 184645205689284980 Motorola Mobility 214445519566724 Sony Ericsson 110223512 Other vendors 29 29 7 6 9 18 22 55 25 32 42 58 157 230 275 Total Handsets 140 179 283 96 103 117 155 470 145 154 175 215 689 908 1090 YoY Growth 28% 58% 89% 76% 48% 64% 66% 50% 49% 50% 39% 46% 32% 20%

Market Share Estimates 2008 2009 2010 1Q11 2Q11 3Q11 4Q11 2011 1Q12 2Q12E 3Q12E 4Q12E 2012E 2013E 2014E Nokia 43% 38% 35% 25% 16% 14% 13% 16% 8% 7% 7% 7% 8% 8% 8% Samsung 0% 4% 9% 13% 18% 25% 23% 21% 31% 34% 33% 28% 31% 32% 34% Apple 11% 14% 17% 19% 20% 15% 24% 20% 24% 18% 16% 20% 20% 19% 19% HTC 9% 7% 9% 10% 12% 11% 7% 10% 5% 7% 7% 6% 6% 6% 6% RIM 16% 19% 17% 15% 13% 9% 9% 11% 8% 5% 4% 3% 5% 4% 0% LG Electronics 0%0%3%4%6%4%4%4%3%4%4%4%4%5%7% Motorola Mobility0%1%5%4%4%4%3%4%4%4%3%3%3% Sony Ericsson 0% 1% 3% 2% 2% 3% 3% 3% Other vendors 21% 16% 2% 6% 9% 15% 14% 12% 17% 21% 24% 27% 23% 25% 25% Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Source: Company reports and Barclays Research estimates

26 May 2012 34 Barclays | The Asia PC Pulse (Issue No. 37)

Figure 58: Barclays Asia ex-Japan Technology Hardware Research – high-end flagship smartphone line-up

Galaxy S III HTC One X iPhone 4S Galaxy S II Announced on May 3; Available. Available. Available.

Release date to be released 29 May in EU (3G only), US in June (4G), Released May 2012 Released 2011 Released 2011 KR/JP: this summer Size 136.6 x 70.6 x 8.6 mm 134.4 x 69.9 x 8.9 mm 115.2 x 58.6 x 9.3 mm 125.3 x 66.1 x 8.5 mm Weight 133 g 130 g 140 g 116 g Display Super AMOLED HD Super LCD2 LED-backlit IPS TFT Super AMOLED Plus Screen size 4.8 inches 4.7 inches 3.5 inches 4.3 inches Resolution 720 x 1280 pixels 720 x 1280 pixels 640 x 960 pixels 480 x 800 pixels 16/32/64GB storage 32GB storage 16/32/64 GB storage 16GB storage Internal storage 1GB DRAM 1GB DRAM 512MB DRAM 1GB DRAM Card slot microSD, up to 32GB No No microSD, up to 32GB Camera 8 MP, 3264x2448 pixels 8 MP, 3264x2448 pixels 8 MP, 3264 x 2448 pixels 8 MP, 3264x2448 pixels Android OS, v4.0 Android OS, v4.0 iOS 5 Android OS, v2.3 OS (IceCreamSandwich) (IceCreamSandwich) (Gingerbread) Quad-core 1.5GHz Nvidia CPU Quad-core 1.4GHz Exynos Dual-core 1 GHz, Apple A5 Dual-core 1.2GHz Exynos Tegra 3 Battery Li-Ion 2100mAh Li-Ion 1800mAh Li-Po 1430mAh Li-Ion 1650mAh

Source: Company data, Barclays Research

26 May 2012 35 Barclays | The Asia PC Pulse (Issue No. 37)

Figure 59: Barclays Asia ex-Japan Technology Hardware Research – Major smartphones in China

Brand Model CPU Display Camera Memory OS Price (RMB) Launch date Below RMB 1,000 Hedy H701 680Mhz 3.5" 480*320 Capacitive 5MP 256M RAM Android 637 2011/12 Motorola xt317 800MHz 2.8" 320*240 Capacitive 3.2MP 256M RAM Android 703 2011/12 Nokia C5-05 600MhHz 3.2" 640*360 Resistive 2MP 128M RAM Symbian 785 2011/12 Samsung CSH-I509 128MHz 3.0" 640*360 Capacitive 3MP 128M RAM Android 788 2011/10 ZTE V889D 1GHz 4.0" 800*480 Capacitive 3.2MP 512M RAM Android 841 2011/12 Huawei U8860 600MHz 3.5" 480*320 Capacitive 3MP 256M RAM Android 866 2011/11 HY H10 Dual core 1GHz 3.7" 480*320 Capacitive 3MP 256M RAM Android 883 2011/12 Coolpad W7260 800MHz 4.0" 800*480 Capacitive 3MP 512M RAM Android 934 2011/12 Lenovo A500 650Mhz 3.5" 480*320 Capacitive 5MP 256M RAM Android 989 2011/12 RMB 1,000 - RMB 2,000 HTC A310 Explorer 600MHz 3.2" 480*320 Capacitive 3MP 512M RAM Android 1,002 2011/11 Huawei U8818 1GHz 3.2" 480*320 Capacitive 5MP 512M RAM Android 1,021 2011/12 Lenovo S760 800MHz 3.7" 800*480 Capacitive 5MP 512M RAM Android 1,228 2011/12 HTC A3366 Wildfire 512MHz 3.2" 320/240 Capacitive 5MP 512M RAM Android 1,331 2010/07 Coolpad 5899 1GHz 3.5" 480*320 Capacitive 3MP 512M RAM Android 1,348 2011/12 OPPO T703 600MHz 3.2" 800*480 Capacitive 5MP 512M RAM Android 1,370 2011/12 HTC A510 Wildfire S 600MHz 3.2" 480*320 Capacitive 5MP 512M RAM Android 1,388 2011/04 Lenovo S2 1.4GHz 3.8" 800*480 Capacitive 8MP 512M RAM Android 1,401 2011/11 Motorola XT681 800MHz 4.0" 854*480 Capacitive 5MP 512M RAM Android 1,448 2011/12 HTC T8686 7 Trophy 1GHz 3.8" 800*480 Capacitive 5MP 512M RAM WP 1,451 2010/10 Gionee GM205 600MHz 3.7" 800*480 Capacitive 5MP 512M RAM Android 1,464 2011/12 K-Touch W806 Dual core 1GHz 4.3" 800*480 Capacitive 5MP 1G RAM Ali 1,499 2012/04 Samsung S6352 800MHz 3.5" 480*320 Capacitive 3MP 512M RAM Android 1599 2012/05 Samsung S5830i 800MHz 3.5" 480*320 Capacitive 5MP 512M RAM Android 1,672 2011/10 HTC C510 Salsa 800MHz 3.4" 480*320 Capacitive 5MP 512M RAM Android 1,679 2011/06 Sharp SH7218T 600MHz 3.3" 854*480 Capacitive 8MP 512M RAM Android 1,849 2011/12 HTC EVO 4G 1GHz 4.3" 800-480 Capacitive 8MP 512M RAM Android 1,852 2010/06 Samsung i677 1.4GHz 3.7" 800-480 Capacitive 5MP 512M RAM WP 1,932 2011/11 HTC C110 Radar 1GHz 3.8" 800*480 Capacitive 5MP 512M RAM WP 1,951 2011/09 Samsung i8150 Galaxy W 800MHz 3.7" 800*480 Capacitive 5MP 512M RAM Android 1,977 2011/10 HTC Desire VT T328t 1GHz 4.0" 800*480 Capacitive 5MP 512M RAM Android 1,999 2012/04 HTC Desire VC T328d 1GHz 4.0" 800*480 Capacitive 5MP 512M RAM Android 1,999 2012/04 HTC Desire V T328w 1GHz 4.0" 800*480 Capacitive 5MP 512M RAM Android 1,999 2012/04 Above RMB 2,000 Nokia 710 1.4GHz 3.7" 800*480 Capacitive 5MP 512M RAM WP 2,046 2011/12 Samsung i9003 1GHz 4.0" 800-480 Capacitive 5MP 512M RAM Android 2,070 2011/01 HTC S510 Desire S 1GHz 3.7" 800*480 Capacitive 5MP 768M RAM Android 2,117 2011/04 HTC A9191 Desire HD 1GHz 4.3" 800*480 Capacitive 8MP 768M RAM Android 2,124 2010/09 Samsung i997 1.2GHz 4.5" 800-480 Capacitive 8MP 512M RAM Android 2,143 2011/05 Xiaomi M1 Dual-core 1.5GHz 4.0" 854*480 Capacitive 8MP 1G RAM Android 2280 2011/10 HTC S710 Incredible S 1GHz 4.0" 800*480 Capacitive 8MP 768M RAM Android 2,282 2011/03 HTC EVO Design 4G 1.2GHz 4.0" 960-540 Capacitive 5MP 512M RAM Android 2,342 2011/12 HTC EVO 3D Dual core 1.2GHz 4.3" 960*540 Capacitive 5MP 1G RAM Android 2,462 2011/06 Gionee GN868 1.5GHz 4.3" 800*480 Capacitive AMOLED 8MP 512M RAM Android 2680 2012/05 Samsung i9250 Nexus Dual-core 1.2GHz 4.65" 1280*720 Capacitive AMOLED 8MP 1G RAM Android 2,898 2011/12 Samsung i 9100 Galazy S II Dual-core 1.2GHz 4.3" 800*480 Capacitive AMOLED 8MP 1G RAM Android 3,307 2011/07 Samsung Galaxy note Dual-core 1.4GHz 5.3" 1280*800 Capacitive AMOLED 8MP 1G RAM Android 3,604 2011/11

Source: Company data, Barclays Research

26 May 2012 36 Barclays | The Asia PC Pulse (Issue No. 37)

APPENDIX III: INTEL MICROPROCESSOR ROADMAP

2007 2008 2009 2010 2011 2012/2013 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 Technology 45nm process 32nm process 22nm process Haswell Micro- Intel Core Nehalem Microarchitecture Sandy Bridge Microarchitecture architecture Microarchitecture (22nm) "Tick" Ivey Micro- Bridge architecture "Tick" Penryn on 45nm "Tick" Westmere (Nehalem on 32nm) (Sandy Bridge on 22nm) "Tock" Nehalem "Tock" Sandy Bridge "Tock" Haswell

Yorkfield Lynnfield (45nm Nehalem) Gulftown Ivy Bridge (3Q07) Bloomfield 3Q09 Sandy Bridge (32nm) Haswell Desktops (32nm (22nm) Wolfdale (4Q08) Clarkdale 1Q11 (22nm) 4Q12E Westmere) 2Q12E (3Q07) (32nm Westmere) 4Q09 Montevina Santa Menlow Montevina NB Pine Trail CULV Oak Trail Huron Oak Trail Rosa Calpella NB Moorestown Chief River Shark Bay NB Santa Rosa (2Q07) Netbook NB platform platform Netbook Nehalem tablet River NB Netbook Refresh platform MID platform NB platform platform platform (3Q08) Refresh platform based platform platform platform (1Q08) (2Q) Clarksfield NBs (45nm Atom Ivy Bridge Intel Core 2 Stealey Nehalem) Sandy Atom Pineview Medfield (22nm Duo (3Q07) 2nd gen Intel 3Q09 Atom Arrandale Bridge Haswell Silverthorne (45nm) Lincroft SOC Sandy (Merom, Gilo Core 2 Duo Arrandale (45nm) (32nm) (32nm) (22nm) 1H13E (2Q08) 4Q09 (32nm) Bridge) Penryn) (4Q07) (32nm 1Q11 4Q11 1H12E Westmere) 4Q09 Caneland Xeon (3Q07) Westmere EX (2Q11) Dunnington Westmere 1P (1Q07) Penryn Sandy Bridge 1P Harpertown (MP, (3Q08) Nehalem (1Q10) / Future Servers Core 2 (4Q07) Nehalem EX (4Q09) (2Q11) 1H08) Nehalem 1P EP (1Q09) Westmere EP processor Quad & Harpertown Sandy Bridge EP (4Q08) (1H10) Duo (UP, DP, (2H11) 4Q07) Source: Company data, Barclays Research

26 May 2012 37 Barclays | The Asia PC Pulse (Issue No. 37)

APPENDIX IV: CUSTOMER-SUPPLIER SALES MATRIX (2012E)

Inven- Pega- Cheng- Dyna- Foxconn Uni- Young- Tripod Wistron Ever- Hon Hai Quanta Compal Wistron Simplo SZS Juteng AAC BYDE Largan Catcher Silitech FIH CCI Darfon Chicony Sunrex Epistar tec tron uei pack Tech micron fast Tech NeWeb light

MISC IT Apple 39% 33% 17% 35% 30% 40% 18% 15% 41% 10% 32% 10% 35% 6% 25% 8% Companies Samsung 1% 9% 20% 12% 15% 8% 8% 9% 7% HP 20% 20% 2% 14% 59% 15% 45% 3% 9% 12% 6% 20% 25% Dell 4% 4% 33% 14% 6% 18% 10% 6% 18% 5% 10% 6% 13% 10% 13% Lenovo 4% 19% 20% 3% 8% 6% 8% 2% 9% 10% 13% PC Brand Acer 3% 10% 33% 13% 7% 7% 2% 6% 15% 7% 9% 10% Companies Asustek 1% 7% 7% 3% 28% 20% 3% 10% 3% 8% 9% Toshiba 5% 3% 30% 14% 1% 5% 11% 13% 8% 3% Sony 6% 4% 15% 5% 1% 1% 3% 9% 3% Nokia 3% 22% 30% 21% 15% 20% 40% 34% 90% 8% 5% Motorola 3% 20% 4% 10% 6% 5% 15% 6% 8% 5% RIM 8% 2% 11% 2% 10% 25% 5% HTC 4% 4% 15% 5% 25% 25% 17% Handset Sony Mobile 1% 10% 10% 8% Brand Companies LGE 15% 5% 5% Sharp 5% 5% ZTE 5% 5% 3% Huawei 35% 5% 3% TCL 2% Cisco 2% IBM 3% Microsoft 3% 20% 18% Other Tech DIRECTV 30% Companies Sirius XM 15% AUO 6% 7% 5% 5% Kingston 8% Other brands 13% 13% 3% 13% 5% 26% 25% 2% 5% 76% 52% 29% 19% 11% 15% 63% 10% 20% 8% 31% 4% 49% 25% 2% 12% 5% 66% 62% Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Source: Company data, Barclays Research estimates

26 May 2012 38 Barclays | The Asia PC Pulse (Issue No. 37)

APPENDIX V: APPLE BUYER/SUPPLIER MATRIX

Apple Buyer/Supplier Matrix iPad (Mar'12) (9.7'') supply chain iPhone 4 / 4S supply chain Hardware Components Company Accelerometer STMicroelectronics (STM.US) Accerlerometer STMicroelectronics (STM.US) Assembly, connectors Hon Hai (2317.TT) Application processor Samsung Electronics (005930.KS) Battery cell (40%) ATL Assembly (90%) Hon Hai (2317.TT) Battery cell (5%) Sony (6758.JP) Assembly (10%) Pegatron (4938.TT) Battery cell (25%) Samsung SDI (006400.KS) Audio codec Cirrus (CRUS.US) Battery cell (20%) LG Chem (051910.KS) Baseband processor, RF Qualcomm (QCOM.US) Battery cell (5%) Sanyo-Panasonic Battery cell (50%) ATL Battery cell (5%) Lishen Battery cell (20%) Sony (6758.JP) Battery packs (40%) Dynapack (3211.TT) Battery cell (20%) Samsung SDI (006400.KS) Battery packs (60%) Simplo (6121.TT) Battery cell (10%) LG Chem (051910.KS) Camera module (20%) Largan (3008.TT) Camera module (50%) Genius Electronic Optical (3406.TT) Camera module (80%) Genius Optical (3406.TT) Camera module (50%) Largan (3008.TT) Casing Foxconn Tech (2354.TT) Casing (90%) Foxconn Tech (2354.TT) CMOS image sensor Sony (6758.JP) CMOS image sensor Sony (6758.JP) CMOS image sensor OmniVision (OVTI) CMOS image sensor OmniVision (OVTI) Contact Image sensor Samsung Electronics (005930.KS) Compass sensor STMicroelectronics (STM.US) Coaxial cables, connectors, power cords Wanshih Electronic (6134.TT) Connector Cheng Uei (2392.TT) Coaxial cables, connectors, power cords Daiichi Seiko (6640.JP) Connector Entery Industrial (1333.TT) Computer components United Alloy (3162.TT) Cover glass Corning (GLW US) Connector Cheng Uei (2392.TT) Cover glass processing (60%) Lens Technology Cover glass processing (40%) Lens Technology Cover glass processing (40%) Fuji Crystal Cover glass processing (30%) Fuji Crystal CPU core ARM (ARMH.US) Cover glass processing (30%) G-Tech (3149 TT) FPCB Interflex (051370.KS) Cover glass Corning (GLW US) Gyroscope STMicroelectronics (STM.US) CPU core ARM (ARMH.US) IC substrate Kinsus (3189.TT) Flexible copper clad laminates and cover layer Taiflex Scientific (8039.TT) Image sensor Omnivision (OVTI.US) FPCB Career Technology (6153.TT) LCD Panel (40-50%) LG Display (034220.KS) FPCB Flexium Interconnect (6269.TT) LCD Panel (20-30%) Toshiba (6502.JP) FPCB Interflex (051370.KS) LCD Panel (20-30%) Samsung Electronics (005930.KS) Gyroscope Lingsen Precision (2369.TT) LCD Panel (10%) Chimei Innolux (3481.TT) Gyroscope STMicroelectronics (STM.US) Magnetic sensor AKM Semiconductors (3407.JP) Heat pipes, heat sinks, thermal module Chaun-Choung (6230.TT) NAND Flash (45-50%) Samsung Electronics (005930.KS) Inductor series Mag Layers (3068.TT) NAND Flash (40-45%) Toshiba (6502.JP) Optical fiber connector Jarllytec (3548.TT) NAND Flash (10%) Hynix (000660.KS) Passive components Yageo (2327.TT) PCB (30%) Unimicron (3037.TT) PCB (20%) Unimicron (3037.TT) PCB (10%) NY PCB (8046.TT) PCB (20%) Tripod (3044.TT) PCB (20%) Tripod (3044.TT) PCB (20%) NY PCB (8046.TT) Power amplifier Skyworks (SWKS.US) PCB (10%) Compeq (2313.TT) Power amplifier Triquint (TQNT.US) PCB Ibiden (4062.JP) Power amplifier Avago (AVGO.US) PCB (double sides/multi-sides) Gold Circuit (2368.TT) Power management Dialog (DLG.GY) Power supply Delta (2308.TT) Quartz Crystal TXC (6042.TT) Quartz Crystal for oscillators for PC TXC (3042.TT) SDRAM Elpida (6665.JP) Speaker** AAC Technology (2018.HK) Speaker AAC Technology (2018.HK) Thermal Module Chaun Choung Tech (6230.TT) Touch Panel (60%) TPK (3673.TT) USB connectors, cable connectors Advanced Connectek (5491.TT) Touch Panel (30%) Wintek (2384.TT) Touch Panel (10%) Chimei Innolux (3481.TT) Semi Touch Sensor TPK (3673.TT) Application processor (A5X) Samsung Electronics (005930.KS) Touch Sensor Wintek (2384.TT) A5 package substrate SEMCO (009150.KS) Touch screen controller Texas Instruments (TXN.US) Battery power management Linear (LLTC.US) VGA sensor Omnivision (OVTI.US) GaAs wafer processing VPEC (2455.TT) WiFi, Bluetooth, FM, GPS Broadcom (BRCM.US) GaAs wafer processing Win Semi (3105.TT) GaAs wafer processing Advanced Wireless Semi (8086.TT) iPhone 5 GPS Broadcom (BRCM.US) Components Company IC Packaging and testing ASE (2311.TT) Assembly Hon Hai (2317.TT) LCD backlight Radiant Opto (6176.TT) Assembly Pegatron (4938.TT) LCD backlight Coretronic (5371.TT) Battery packs Dynapack (3211.TT) LCD driver Novatek (3034.TT) Battery packs Simplo (6121.TT) LCD Panel (40-50%) LG Display (034220.KS) Camera module (50%) Genius Electronic Optical (3406.TT) LCD Panel (30%) Samsung Electronics (005930.KS) Camera module (50%) Largan (3008.TT) LCD Panel (10-20%)* Sharp (6753.JP) Camera VCM Alps Electrics (6770.JP) LCD Panel (10%) Chimei Innolux (3481.TT) Camera VCM Mitsumi Electrics (6767.JP) NAND Flash (45-50%) Samsung Electronics (005930.KS) Coaxial cables, connectors, power cords Daiichi Seiko (6640.JP) NAND Flash (40-45%) Toshiba (6502.JP) Cover glass processing G-Tech (3149 TT) NAND Flash (10%) Hynix (000660.KS) FPCB Interflex (051370.KS) Passive Components Murata (6981.JP) FPCB Zhen Ding (4958.TT) Passive Components TDK (6762.JP) FPCB Flexium Interconnect (6269.TT) Power Management IC Richtek (6286.TT) GaAs wafer processing VPEC (2455.TT) Quartz Crystal TXC (6042.TT) LCD backlight Radiant Opto (6176.TT) RF, handset baseband Infineon (IFNNY.US) LCD Panel LG Display (034220.KS) RF, handset baseband (CDMA version) Qualcomm (QCOM.US) LCD Panel Samsung Electronics (005930.KS) SMT processing TSMT (6278.TT) LCD Panel Sharp (6753.JP) System power mgmt NXP (NXPI.US) LCD Panel Toshiba (6502.JP) TFT-LCD color filters Hannstartouch (3049.TT) LCD Panel Chimei Innolux (3481.TT) Touch Panel (60%) TPK (3673.TT) Passive Components Murata (6981.JP) Touch Panel (30%) Wintek (2384.TT) PCB Ibiden (4062.JP) Touch Panel (10%) Chimei Innolux (3481.TT) P-gamma display IC Integrated Memory Logic (3638 TT) Touch Sensor TPK (3673.TT) Touch Panel TPK (3673.TT) Touch Sensor Wintek (2384.TT) Touch Panel Wintek (2384.TT) Touch Sensor Hannstartouch (3049.TT) Touch Sensor Cando (8056.TT) iPad mini (7.85") Components Company * For New iPad (Mar'12): New supply chain/features in additional to iPad 2 LCD Panel AUO (2409.TT) LCD Panel LG Display (034220.KS) Source: Companies, Barclays Research

26 May 2012 39 Barclays | The Asia PC Pulse (Issue No. 37)

APPENDIX VI: TAIWAN SUPPLY CHAIN CONCEPT STOCKS

Taiwan Supply Chain Concept Stocks HP Supply Chain Apple iPad Supply Chain Amazon Kindle / Kindle Fire Supply Chain Notebook Compal (2324.TT) Assembly, connectors Hon Hai ( 2317.TT) Assembly (Kindle) Hon Hai (2317.TT) Notebook Quanta (2382.TT) Battery packs Dynapack ( 3211.TT) Assembly (Kindle Fire) Quanta (2382.TT) Notebook, Server Inventec (2356.TT) Battery packs Simplo ( 6121.TT) Touch Panel (Kindle Fire) Wintek (2384.TT) Desktop Hon Hai (2317.TT) Camera module Largan ( 3008.TT) Touch Panel (Kindle Fire) TPK (3673.TT) Desktop Pegatron (4938.TT) Camera module Genius Optical ( 3406.TT) Touch Panel (Kindle Fire) Sintek (3049.TT) Desktop Elitegroup (2331.TT) Casing Foxconn Tech ( 2354.TT) Touch Panel (Kindle Fire) J Touch (3584.TT) Desktop Tatung (2371.TT) Coaxial cables, connectors, pWanshih Electronic ( 6134.TT) Connector (Kindle/Kindle Fir Cheng Uei (2392.TT) Display AUO (2409.TT) Computer components United Alloy ( 3162.TT) Connector (Kindle Fire) Aces Electronics (3605.TT) Display Chimei-Innolux (3481.TT) Connector Cheng Uei ( 2392.TT) Display Panel E Ink (8069.TT) Keyboard Darfon (8163.TT) Flexible copper clad laminateTaiflex Scientific ( 8039.TT) IC Design ILI Tech (3598.TT) Keyboard Chicony (2385.TT) FPCB Career Technology ( 6153.TT) Keyboard Sunrex (2387.TT) FPCB Flexium Interconnect ( 6269.TT) Ultrabook Supply Chain Thermal module Asia Vital (3017.TT) GaAs wafer processing Advanced Wireless Semi ( 8086.TT) ODM Hon Hai (2317.TT) Thermal module Chaun Choung Tech (6230.TT) GaAs wafer processing VPEC ( 2455.TT) ODM Compal (2324.TT) Thermal module Forcecon (3483.TT) GaAs wafer processing Win Semi ( 3105.TT) ODM Quanta (2382.TT) Battery Simplo (6121.TT) Gyroscope Lingsen Precision ( 2369.TT) ODM Wistron (3231.TT) Battery Dynapack (3211.TT) Heat pipes, heat sinks, thermChaun-Choung ( 6230.TT) Battery Simplo (6121.TT) Networking equipment Accton (2345.TT) IC Packaging and testing ASE ( 2311.TT) Battery Dynapack (3211.TT) Networking equipment Gemtek (4906.TT) Inductor series Mag Layers ( 3068.TT) Power supply Lite-on (2301.TT) Casing Foxconn Tech (2354.TT) LCD backlight Coretronic ( 5371.TT) Power supply Chicony (2385.TT) Power supply, DVD, scanner Lite-on Group (2301.TT) LCD backlight Radiant Opto ( 6176.TT) Hinge SZS (3376.TT) Power supply Delta Electronics (2308.TT) LCD driver Novatek ( 3034.TT) Thermal module Chaun Choung Tech (6230.TT) LCD Panel Chimei Innolux ( 3481.TT) Solid state drive Phison Electronics (8299.TT) Dell Supply Chain Optical fiber connector Jarllytec ( 3548.TT) Casing Catcher (2474 TT) Notebook, Server Quanta (2382.TT) Passive components Yageo ( 2327.TT) Casing Getac Tech (3005 TT) Notebook, Server Compal (2324.TT) PCB Compeq ( 2313.TT) Casing Foxconn Tech (2354 TT) Notebook, Server Wistron (3231.TT) PCB NY PCB ( 8046.TT) Notebook, Server Inventec (2356.TT) PCB Tripod ( 3044.TT) Windows 8 Concept Stocks Desktop Hon Hai (2317.TT) PCB Unimicron ( 3037.TT) Brand PC Acer (2353.TT) Desktop Pegatron (4938.TT) PCB Gold Circuit ( 2368.TT) Brand PC Asus (2357.TT) Desktop Elitegroup (2331.TT) Power Management IC Richtek ( 6286.TT) ODM Quanta (2382.TT) Desktop Tatung (2371.TT) Power supply Delta ( 2308.TT) ODM Compal (2324.TT) Display AUO (2409.TT) Quartz Crystal TXC ( 6042.TT) ODM Wistron (3231.TT) Display Chimei-Innolux (3481.TT) Quartz Crystal for oscillators TXC ( 3042.TT) Motherboard Gigabyte (2376.TT) Keyboard Darfon (2385.TT) SMT processing TSMT ( 6278.TT) Motherboard MSI (2377.TT) Keyboard Chicony (2385.TT) TFT-LCD color filters Hannstartouch ( 3049.TT) Touch panel TPK (3673.TT) Keyboard Sunrex (2385.TT) Thermal Module Chaun Choung Tech ( 6230.TT) Touch panel Wintek (2384.TT) Hinge SZS (3376.TT) Touch Panel Chimei Innolux ( 3481.TT) Touch panel Hannstartouch (3049.TT) Battery Simplo (6121.TT) Touch Panel/Touch Sencor Wintek ( 2384.TT) Touch panel Youngfast (3622.TT) Battery Dynapack (3211.TT) Touch Panel/Touch Sencor TPK ( 3673.TT) Networking equipment Accton (2345.TT) Touch Sensor Cando ( 8056.TT) Cloud Server Concept Stocks Networking equipment Gemtek (4906.TT) Touch Sensor Hannstartouch ( 3049.TT) Server Inventec (2356.TT) Casing Catcher (2474 TT) USB connectors, cable conneAdvanced Connectek ( 5491.TT) Server Quanta (2382.TT) Casing Foxconn Tech (2354 TT) Server Wistron (3231.TT) Casing Waffer Tech (6235 TT) Apple iPhone Supply Chain Server Chassis Chenbro Microm (8210.TT) Power supply, DVD, scanner Lite-on Group (2301.TT) Assembly Hon Hai (2317.TT) Server Rail Kit King Slide (2059.TT) RAID (for Server) Infortrend Technology (2495.TT) Assembly Pegatron (4938.TT) System integration Ares International (2471.TT) RAID (for Server) Promise Technology (3057.TT) Camera module Genius Electronic Optical (3406.TT) System integration Stark Technology (2480.TT) Thermal module (for Server) Asia Vital (3017.TT) Camera module Largan (3008.TT) RAID (for Server) Infortrend Technology (2495.TT) Thermal modules AURAS Technology (3324.TT) Casing Catcher (2474 TT) RAID (for Server) Promise Technology (3057.TT) Chassis Chenbro Microm (8210.TT) Casing Foxconn Tech (2354 TT) SSL VPN solutions Array Networks (3664.TT) PCB Gold Circuit Electronics (2368.TT) Connector Cheng Uei ( 2392.TT) System firmware Insyde Software (6231.TT) PCB HannStar Board (5469.TT) Connector Entery Industrial ( 1333.TT) PCB Tripod Tech (3044.TT) Cover glass G-Tech (3149 TT) Thunderbolt Concept Stocks IC substrate Kinsus (3189.TT) Thunderbolt connector Cheng Uei (2392.TT) Lenovo Supply Chain LCD Panel Chimei Innolux (3481.TT) Storage device control systemPromise Tech (3057.TT) Notebook Compal (2324.TT) Quartz Crystal TXC (3042.TT) Passive fiber optics componeFOCI (2382.TT) Notebook Wistron (3231.TT) Speaker AAC Technology (2018 HK) Active fiber optics componeneLaser (3450.TT) Notebook Quanta (2382.TT) Touch Panel/Touch Sensor TPK (3673.TT) Optical transmission componApac Opto (4908.TT) Thermal module Asia Vital (3017.TT) Touch Panel/Touch Sensor Wintek (2384.TT) Active fiber optics componenLuxnet (4979.TT) Thermal module Chaun Choung Tech (6230.TT) Touch Panel AUO (2409.TT) Thermal module Forcecon (3483.TT) Touch Panel Hannstartouch (3049.TT) SSD Concept Stocks Battery Simplo (6121.TT) Connector Cheng Uei (2392.TT) Memory expansion card Transcend (2451.TT) Connector Entery Industrial (1333.TT) SSD and DRAM modules A-Data (3260.TT) Acer Supply Chain Cover Glass G-Tech (3149.TT) Data storage controllers Skymedi (3555.TT) Notebook Compal (2324.TT) PCB Unimicron (3037.TT) SSD and DRAM modules Power Quotient Intl (6145.TT) Notebook Wistron (3231.TT) PCB Tripod Tech (3044.TT) SSD and DRAM modules Apacer Technology (8271.TT) Notebook Quanta (2382.TT) PCB Nanya PCB (8046.TT) Desktop Hon Hai (2317.TT) Intel Concept Stocks Battery Simplo (6121.TT) Apple MacBook Pro Supply Chain PCB Compeq (2313.TT) Hinge SZS (3376.TT) Assembly Hon Hai (2317.TT) Desktop Hon Hai (2317.TT) Hinge Jarllytec (3548.TT) Assembly Quanta (2382.TT) Notebook Compal (2324.TT) Casing Ju Teng (3336.HK) Casing Foxconn Tech (2354.TT) Notebook Quanta (2382.TT) Casing Catcher (2474 TT) Packaging and testing Siliconware Precision (2325.TT) Dell Ultrabook Concept Stocks Battery Simplo (6121.TT) Desktop Elitegroup (2331.TT) Casing Catcher (2474 TT) Battery Dynapack (3211.TT) Motherboard Gigabyte (2376.TT) Battery Simplo (6121.TT) Hinge SZS (3376.TT) Motherboard MSI (2377.TT) Battery Dynapack (3211.TT) Hinge Jarllytec (3548.TT) Motherboard, VGA cards Biostar Microtech (2399.TT) Hinge SZS (3376.TT) Keyboard Chicony (2385.TT) Motherboard components ASRock (3515.TT) Notebook Compal (2324.TT) Keyboard Sunrex (2387.TT) Semi distribution WPG (3702.TT) Notebook Quanta (2382.TT) Keyboard Darfon (8163.TT) Non-volatile memory Macronix (2337.TT) Thermal modules AURAS Technology (3324.TT) HP Cloud Computing Supply Chain Sony Playstation Concept Stocks ODM Inventec (2356.TT) Non-Apple Supply Chain Assembly Hon Hai (2317.TT) ODM Quanta (2382.TT) Handset OEM HTC (2498.TT) Assembly Pegatron (4938.TT) ODM Wistron (3231.TT) Headset/Speaker Merry Electronics (2493.TT) Casing Foxconn Tech (2354 TT) RAID Infortrend Technology (2495.TT) Handset ODM Compal Comm (8078.TT) Connector Cheng Uei (2392.TT) RAID Promise Technology (3057.TT) Handset ODM Arima Comm (8101.TT) IC substrate NY PCB (8046.TT) Chassis / Mould Lemtech (4912.TT) Wireless Comm. ODM Wistron NeWeb (6285.TT) Power supply Delta Electronics (2308.TT) Chassis Chenbro Microm (8210.TT) Handset Keypad Ichia Tech (2402.TT) PCB Unimicron (3037.TT) Thermal modules Asia Vital (3017.TT) Plastic surface processing Ways Technical (3508.TT) Thermal module Lemtech (4912.TT) Thermal modules AURAS Technology (3324.TT) Wireless module CyberTan Tech (3062.TT) Source: Companies, Barclays Research

26 May 2012 40 Barclays | The Asia PC Pulse (Issue No. 37)

APPENDIX VII: BILLS OF MATERIALS

Figure 60: Bill of materials for a typical NB PC (estimated, Figure 61: Bill of materials for a typical desktop PC US$) (estimated, US$) Component Cost Range % of Total Component Cost Range % of Total

Display $51 - $63 11.4% - 8.2% Monitor $63 - $116 16.4% - 15.3% CPU 45 - 200 10.0% - 25.9% Hard Disk Drive 42 - 61 9.4% - 7.9% CPU 40 - 162 10.5% - 21.3% DRAM 23 - 29 5.1% - 3.7% Hard Disk Drive 42 - 71 11.1% - 9.3% Battery 26 - 48 5.8% - 6.3% DRAM 29 - 53 7.5% - 7.0% Casing 30 - 45 6.8% - 5.9% Power source / casing 33 - 54 8.5% - 7.1% Optical drive 27 - 42 6.1% - 5.5% Chipset (data processing / ASP) 25 - 44 6.6% - 5.8% Chipset (data processing / ASP) 36 - 44 8.1% - 5.7% Connectors 19 - 26 4.9% - 3.4% Connectors 21 - 29 4.6% - 3.8% Circuit Board 6 - 7 1.6% - 1.0% Circuit Board 15 - 15 3.2% - 1.9% Power adapter 6 - 7 1.4% - 0.9% Optical drive 21 - 79 5.5% - 10.4% WLAN 6 - 24 1.3% - 3.1% Keyboard 4 - 6 1.0% - 0.8% Keyboard 4 - 6 0.9% - 0.8% Others 6 - 17 1.5% 2.3% Others 12 - 23 2.6% 3.0% Software 75 - 75 19.6% - 9.9% Software 75 - 75 16.7% - 9.7% Warranty 20 - 50 5.2% - 6.6% Warranty 30 - 60 6.7% - 7.8%

Total $449 - $772 Total $382 - $760 Source: Gartner, Barclays Research estimates Source: Gartner, Barclays Research estimates

Figure 62: Bill of materials for a typical ultrabook (NB) Figure 63: Bill of materials for a RMB1,000-priced Android smartphone (US$) Component Cost (US$) % of total Cost (US$)otal Device cost Display $67 9% Baseband Processors 11 - 12 12.8% CPU (Intel Core i3) $173 22% SSD (128G) $150 19% Other Ics 5 - 6 6.1% DRAM $26 3% Memory 15 - 17 17.8% Battery (polymer) $47 6% Display w/ Touchscreen 18 - 20 21.1% Metal casing $55 7% Mechanical parts 8 - 10 10.0% Optical drive $0 0% Chipset $40 5% Camera modules 5 5.6% Connectors $25 3% Sub-total BOM cost 62 - 70 73.3% Circuit Board $15 2% Manufacturing costs 5 - 7 6.7% Power adapter $7 1% WLAN $15 2% Overhead (R&D, SG&A) 10 - 12 12.2% Keyboard $5 1% Royalties 6 - 8 7.8% Others $17 2% Total device cost 83 - 97 100.0% Assembly $20 3% Retained profits 5 - 10 Software $75 10% Warranty $45 6% FOB prices 88 - 107 Total $781 Distribution mark-ups 50 - 60% Retail prices 130 - 170 Source: Barclays Research estimates Source: iSuppli, Barclays Research estimates

Figure 64: Bill of materials for Amazon Kindle Fire (US$) Figure 65: Bill of materials for high-end smartphone (US$) Pricing % of Total Device cost Nokia Lumia Samsung 900 % of Total Galaxy S2 % of Total Display w/ touchscreen 87.00 43.1% Memory - NAND & DRAM 27.00 12.4% 32.00 13.1% Memory 22.10 11.0% 4.3" AMOLED w/ Touchscreen 58.00 26.7% 64.00 26.3% Application Processor 14.65 7.3% Processor 17.00 7.8% 22.00 9.0% Camera 18.00 8.3% 20.00 8.2% WLAN IC 4.50 2.2% Baseband & Transceiver 38.00 17.5% 37.00 15.2% Other Peripheral PCBs 23.20 11.5% UI, sensors and WLAN/BT/FM 14.00 6.5% 16.50 6.8% Battery 16.50 8.2% Power Management 9.00 4.1% 11.00 4.5% Battery 4.50 2.1% 5.00 2.1% Enclosure 14.40 7.1% Mechanical/Electro-Mechanical 18.00 8.3% 22.00 9.0% Box Contents 3.25 1.6% Box Contents 5.50 2.5% 6.00 2.5% Manufacturing Costs 7.10 3.5% Manufacturing Cost 8.00 3.7% 8.00 3.3% Total device cost 217.00 100.0% 243.50 100.0% EMS Margin 9.00 4.5% Total Device costs 201.70 100.0% Retail Prices w/o Contract 450 550

Margin excl. software 52% 56%

Source: iSuppli, Barclays Research estimates Source: iSuppli, Barclays Research estimates

26 May 2012 41 Barclays | The Asia PC Pulse (Issue No. 37)

Figure 66: Bill of materials for Apple’s iPhone 4 & 4S (US$)

iPhone 4 8GB % of Total iPhone 4S 16GB % of Total iPhone 4S 32GB % of Total iPhone 4S 64GB % of Total Memory (NAND/DRAM) 18.70 10.8% 28.30 14.4% 47.50 22.1% 85.90 33.9% Display w/ Touchscreen 37.00 21.4% 37.00 18.9% 37.00 17.2% 37.00 14.6% Mechanical/Electro-mechanical 30.00 17.4% 33.00 16.8% 33.00 15.3% 33.00 13.0% Baseband/RF/PA 23.54 13.6% 23.54 12.0% 23.54 10.9% 23.54 9.3% Camera 13.70 7.9% 17.60 9.0% 17.60 8.2% 17.60 6.9% BT/FM/WLAN/GPS 6.50 3.8% 6.50 3.3% 6.50 3.0% 6.50 2.6% Application Processor 8.50 4.9% 15.00 7.7% 15.00 7.0% 15.00 5.9% User Interface 6.85 4.0% 6.85 3.5% 6.85 3.2% 6.85 2.7% Power Management 7.20 4.2% 7.20 3.7% 7.20 3.3% 7.20 2.8% Battery 5.90 3.4% 5.90 3.0% 5.90 2.7% 5.90 2.3% Box Contents 7.00 4.0% 7.00 3.6% 7.00 3.3% 7.00 2.8% Manufacturing Cost 8.00 4.6% 8.00 4.1% 8.00 3.7% 8.00 3.2% Total device cost 172.89 100.0% 195.89 100.0% 215.09 100.0% 253.49 100.0%

Retail Prices w/o Contract 549.00 649.00 749.00 849.00

Margin excl. software 69% 70% 71% 70% Source: iSuppli, Companies, Barclays Research estimates

Figure 67: Bill of materials for Apple’s iPad (US$)

iPad 2 New iPad (March'12) 16GB 16GB 16GB 32GB 64GB 16GB 32GB 64GB WiFI % of Total WiFi+3G % of Total WiFi % of Total WiFi % of Total WiFi % of Total WiFi+4G % of Total WiFi+4G % of Total WiFi+4G % of Total Memory - NAND 16.80 6.9% 16.80 6.2% 16.80 5.3% 33.60 10.1% 67.20 18.3% 16.80 4.7% 33.60 9.0% 67.20 16.4% Memory - DRAM 7.60 3.1% 7.60 2.8% 13.90 4.4% 13.90 4.2% 13.90 3.8% 13.90 3.9% 13.90 3.7% 13.90 3.4% Display 57.00 23.3% 57.00 21.0% 87.00 27.5% 87.00 26.1% 87.00 23.7% 87.00 24.3% 87.00 23.2% 87.00 21.3% Touchscreen 40.00 16.3% 40.00 14.8% 40.00 12.7% 40.00 12.0% 40.00 10.9% 40.00 11.2% 40.00 10.7% 40.00 9.8% Processor (A5/A5X) 14.20 5.8% 14.20 5.2% 23.00 7.3% 23.00 6.9% 23.00 6.3% 23.00 6.4% 23.00 6.1% 23.00 5.6% Camera 4.10 1.7% 4.10 1.5% 12.35 3.9% 12.35 3.7% 12.35 3.4% 12.35 3.4% 12.35 3.3% 12.35 3.0% Baseband+transceiver 25.60 9.4% 41.50 11.6% 41.50 11.1% 41.50 10.2% BT/FM/WLAN/GPS 15.35 6.3% 15.35 5.7% 15.00 4.7% 15.00 4.5% 15.00 4.1% 15.00 4.2% 15.00 4.0% 15.00 3.7% Power Management 5.85 2.4% 5.85 2.2% 10.00 3.2% 10.00 3.0% 10.00 2.7% 10.00 2.8% 10.00 2.7% 10.00 2.4% Battery 22.75 9.3% 22.75 8.4% 32.00 10.1% 32.00 9.6% 32.00 8.7% 32.00 8.9% 32.00 8.5% 32.00 7.8% Mechanical/Electro-Mechanical 47.80 19.5% 47.80 17.6% 50.50 16.0% 50.50 15.2% 50.50 13.8% 50.50 14.1% 50.50 13.5% 50.50 12.4% Box Contents 5.50 2.2% 5.50 2.0% 5.50 1.7% 5.50 1.7% 5.50 1.5% 5.50 1.5% 5.50 1.5% 5.50 1.3% Manufacturing Cost 8.15 3.3% 8.45 3.1% 10.00 3.2% 10.00 3.0% 10.00 2.7% 10.75 3.0% 10.75 2.9% 10.75 2.6% Total device cost 245.10 100.0% 271.00 100.0% 316.05 100.0% 332.85 100.0% 366.45 100.0% 358.30 100.0% 375.10 100.0% 408.70 100.0%

Retail Prices w/o Contract 399.00 529.00 499.00 599.00 699.00 629.00 729.00 829.00

Margin excl. software 39% 49% 37% 44% 48% 43% 49% 51% Source: iSuppli, Companies, Barclays Research estimates

26 May 2012 42 Barclays | The Asia PC Pulse (Issue No. 37)

APPENDIX VIII: CHINA MANUFACTURING MAPS

Acer, Advanced Connectek, Career Tech, Chaun Choung, Cheng Uei Precision, Clevo, Yellow Sea Compal, Coretronic, DynaPack, Flexium, Foxconn Tech, Hon Hai, Huan Hsin, Ju Teng, Kingboard Chemical, LG, Micro-Star, Mitac, Motech, NanYa PCB, Samsung Canadian Solar, Elitegroup, Electro-Mechanics, Sanmina, Tariflex, TE Connectivity, Unimicron Tech, Wistron Gold Circuit, Jarllytec, Quanta, Silitech, Simplo, Hynix, Infineon, Jabil Ci rcuit, Lite-On Semiconductor, Qidong 啓東 United Alloy-Tech Lite-On Tech, Nam Tai Electronics, Panasonic, Renesola, Sanmina, Seagate, Suntech, TCL Multimedia, Toshiba, JIANGSU 江蘇 Hanwha SolarOne Tripod, TE Connectivity,ZTE, Unizyx Yangtze Asia Optical, Flextronics Changshu 常熟 Changzhou 常州 Mitac Wuxi 無錫 First Engineering, Lenovo

China Sunergy, LG, Kunshan 昆山 Zhabei Sim Tech Suzhou 蘇州 Tai Hu 閘北 外高橋 Jiading 嘉定 Waigaoqiao Huangpu 黃埔 Yageo AAC Acoustics, CMMB Vision, Epistar, Changning 長寧 Xuhui 徐匯 Flextronics, Lite-On Tech, Jarllytec, Caolu Industry Zone 曹路工業區 Datang Telecom, Jabil Circuit, Trina Solar Jinqiao TE Connectivity Shanghai 上海 金橋 Wujiang 吳江 AAC Acoustics, Asustek,AU Optronics, SHANGHAI 上海 Xinzhuang Zhangjiang Canadian Solar, Cando, Career Tech, Industrial Zone Hi-Tech Park East China Sea Catcher, Cheng Uei Precision, Coretronic, 辛莊工業區 張江高科技園區 Compeq, Darfon Electronics, Dewav, Songjiang 松江 DynaPack, Elitegroup, Everlight, FIC, First Engineering, Flextronics, Founder, Hi-P International Global Flex Holdings, Gold Circuit, Hi-P Fengxian 奉賢 Jiashan 嘉善 International, Hon Hai, HTC, Ichia Tech, OmniVision, Venture Jabil Circuit, Kingboard Chemical, Largan Corporation, ZTE Precision, Logah, Merry, NEC, Nokia, Panasonic, Pegatron, Philips, Qisda, Delta, Inventec Samsung Electro-Mechanics, Samsung Electronics, Sanmina, Sanyo, Seagate, BYD, BYD Electronic, Cheng Shin Zu Shing, Silitech, Simplo, TDK, Uei Precision, Creative Tech, TPV, TE Connectivity,Unimicron Tech, ZHEJIANG 浙江 HP, Hon Hai, HTC, Huan Hsin, Venture Corp, Wanshih, Wellypower, Jarylltec, NEC, Panasonic, Wintek, Yageo Pegatron, Qisda, Samsung Electronics, Techfaith Arima, Arima Communications, Chico ny, Hangzhou Wan Wireless, Toshiba, USI Delta, Flextronics, Ju Teng, Lite-On Tech, NEC, Radiant, Tatung Asustek, DBTel

JA Solar

AU Optronics, Coretronic, Eastcom, Founder, Huawei, LG, NEC, Renesola Panasonic, Techfaith Wireless, Ju Teng, Lite-On Hangzhou 杭州 Toshiba, UT Starcom, ZTE Semiconductor, OmniVision, Quanta, City District Main road Main railway Samsung SDI

Source: Barclays Research

26 May 2012 43 Barclays | The Asia PC Pulse (Issue No. 37)

Founder Comba Telecom Systems, Coretronic, Elec & Eltek, Heyuan 河源 Delta, Lite-OnTech Everlight, FIC, First Engineering, Jabil Circuit, Kingboard Zhu Jiang Chemical, LG Display, Lite-On Tech, NEC, Panasonic, ZTE Shilong 石龍 Radiant, Skyworth, United Alloy-Tech Chimei Innolux, Shijie 石碣 Huizhou 惠州 Hisense, Hon Hai, Elcoteq, G-Tech, Hi-P International, Hon Hai, Huawei, Toshiba Jarllytec, Kingboard Chemical, NEC, Nokia, NXP, TDK, VTech, Wanshih, Wintek BYD, Compeq, Coretronic, LG, Samsung Foshan Guangzhou 廣州 Electronics, Sanyo, TCL Communication, 佛山 Samsung Electro-Mechanics United Alloy-Tech, Young Fast Dongguan DFI, Genius, Cheng Uei Precision Samsung Electronics, 東莞市 Techtronic Shunde 順德 Liaobu 寮步 Dongkeng 東坑 Cheng Uei Precision, Gigabyte

Mitac, TE Connectivity Dalang 大朗 Houjie 厚街 Huangjiang 黃江 Flextronics Changping 常平 Ta Yang

Dalingshan 大嶺山 Largan Precision Zhangmutou Chicony, Sanyo 樟木頭鎮

Qingxi 清溪 Konka Kingboard Chemical, Lenovo Asia Optical Tangxia 唐夏 Fenggang Huiyang 惠陽 Asia Optical, Lite-OnTech Gongming 公明 鳳崗 Chang’an Chaun Choung, Flextronics, Jabil, Sanmina, 長安 Sanyo, SilitechTech Sanyo, Yageo Shajing 沙井 Longgang 龍崗 Accton, Advanced Connectek, Career Tech, Darfon Electronics, Greatwall Elitegroup, Hon Hai, Mag.Layers, Advanced Connectek, Merry, Micro-Star, Philips, Sanyo, Founder, Huawei Shin Zu Shing, Techtronic, Toshiba, Unimicron Tech, Shiyan 石岩 BYD Electronic, Chimei Innolux, Datang, United Alloy-Tech Longhua 龍華 Elec & Eltek, FIC, Greatwall, Lenovo, Nam Tai, NEC, Samsung Electronics, BYD TE Connectivity, Venture Corp G-Tech, Hon Hai Elitegroup Kuiyong 葵湧 Hon Hai, Ichia Tech, Ju Teng, Shin Zu Shing, Wistron Bao’an 寳安 Zhongshan 中山 Shatoujiao 沙頭角 Tai Pang Wan Nanshan 南山 AAC Acoustics, HTC, Samsung Electronics, Sanyo, Skyworth, USI, ZTE Shenzhen 深圳

Flextronics, Founder, Panasonic, TE Connectivity HONG KONG SAR 香港 Zhuhai 珠海 City District Main road Main railway Lingding Yang Hau Hoi Wan (CHINA)

Source: Barclays Research

26 May 2012 44 Barclays | The Asia PC Pulse (Issue No. 37)

Hisense LG, Hon Hai City District Mainroad Mainrailway Advanced Connectek, Cheng Uei Precision, Daewoo Hon Hai, LG, Panasonic, SimTech Electronic, Datang, Delta, FIH, Hi-P International, Intops, Jabil Circuit, LG, Lite-On Tech, Motorola, Haier, Intel, Panasonic, Sanyo, TDK, Toshiba Panasonic, Samsung Electro-Mechanics, Samsung Electronics, Samsung SDI, Sanyo Hon Hai, Jabil Circuit

Huawei, FIH Daewoo Electronic, Intops, Samsung Electronics BYD, BYD Electronic, Capitel, Datang Telecom, Elcoteq, FIH, Konka TCL Multimedia, Greatwall, Hyundai, Lenovo, Skyworth Creative Tech, Haier, Hi-P International, NEC, Nokia, Panasonic, Philips, Hisense, LG, Panasonic, TDK, TPV, Sanyo, Sony Ericsson,Techfaith Harbin TE Connectivity Hon Hai Wireless, TPV JA Solar NEC, Panasonic, TCL Multimedia Haier Darfon Electronics, Hon Hai Mudanjiang Changchun Hon Hai Urumqi Yingli Solar Haier, ZTE

Canadian Solar Chimei Innolux, China Sunergy, Compal Communications, Coretronic, Elec & Eltek, Chengde Shenyang Inventec, Jabil Circuit, Ju Teng, Kingboard Delta Chemical, LG, LG Display, Radiant, Skyworth Beijing Huhhot BYD, BYD Electronic, Langfang JA Solar, Suntech Datang Telecom, NEC, ZTE Qinhuangdao Delta, Hisense, Hon Hai Baoding Tianjin Dalian Konka AAC Acoustics, Epistar, Lite-On Tech, Taiyuan Trina Solar, Flextronics Yantai Zibo BYD Weihai Xining Jinan Jabil Circuit, Hynix, Infineon, Lite-On FIH Semiconductor, Lite-On Tech, Nam Tai Lanzhou Qingdao Electronics, Panasonic, Renesola, Compal, Datang, Dell, Hi-P International, Sanmina-SCI, Seagate, Suntech, Xinxiang Lianyungang Hon Hai, Intel, Lenovo, Mitac, ShinZu Chenzhou TCL Multimedia, Toshiba, Tripod, Shing, TCL Multimedia, Wistron Zhengzhou TE Connectivity, Unizyx, ZTE Xianyang Xi’an Luoyang Acer, Asustek, AT&S, Founder, Haier, HP, Hon Hai, Shangluo Huai’an Canadian Solar, Elitegroup, AAC Acoustics, Asustek,AT&S, AU Inventec, Konka, Quanta, Simplo, UT Starcom, P&Tel Gold Circuit, Jarllytec, Optronics, Canadian Solar, Cando, Career Yangzhou Tech, Chimei Innolux, CMMB Vision, Nanjing Quanta, Silitech, Simplo, Catcher, Compeq, Coretronic, Darfon BYD Changzhou United Alloy-Tech Electronics, Dewav, DynaPack, Elitegroup, Hefei Changshu Wuhu Wuxi Everlight, FIC, First Engineering, Flextronics, LDK Solar Mianyang Yichang Suzhou Shanghai Founder, Gold Circuit, Hi-P International, Wuhan Huzhou Chengdu Hon Hai, HTC, Ichia Tech, Jabil Circuit, Toshiba, Lite-On Tech Jiujiang Hangzhou Ningbo Kingboard Chemical, Largan Precision, Chongqing Ta Yang Logah, Merry, NEC, Panasonic, Pegatron, Hisense Lhasa Quzhou Philips, Qisda, Samsung Electro-Mechanics, BYD, Chimei Innolux, Coretronic, Samsung Electronics, Sanmina-SCI, Sanyo, Taizhou NEC Changsha Gigabyte, TXC Seagate, Shin Zu Shing, Silitech, TE Connectivity, TDK, TPV, Unimicron Tech, Eastcom, Founder, Huawei, LG, NEC, Venture Corp, Wanshih, Wellypower, Wintek Comba Telecom Systems, Coretronic, Xinyu Panasonic,Techfaith Wireless, Toshiba, Elec & Eltek, Everlight, FIC, First Engineering, Zhuzhou UT Starcom, ZTE Jabil Circuit, Kingboard Chemical,LG Display, Asia Optical, Asustek,AU Optronics, BYD, Lite-On IT, Lite-On Tech, NEC, Panasonic, Guiyang Ganzhou Ju Teng , LG, Wistron BYD Electronic, Chimei Innolux, China Radiant, Skyworth, TCL, United Alloy-Tech Kunming Fuzhou Sunergy, Coretronic, Datang, DBTel, Delta, Guilin Konka First Engineering, Flextronics, Hi-P Chimei Innolux, Hisense, Hon Hai,Toshiba International, HP, Hon Hai, HTC, Huan Hsin, Xiamen Inventec, JA Solar, Jabil Circuit, Jarllytec, Ju Liuzhou Ability Enterprise AAC Acoustics, Accton, Advanced Connectek, Asia Optical,BYD, BYD Electronic, Career Tech, Teng , Lenovo, LG, Lite-On Semiconductor, Guangzhou Mitac, NEC, Omni Vision,Panasonic, Cheng Uei Precision, Chimei Innolux, Darfon Electronics, Datang, Elec & Eltek, Elitegroup, FIC, Dongguan Greatwall, Haier, Hon Hai, NEC, TPV, Tripod Pegatron, Qisda, Quanta, Samsung FIH, Flextronics, Founder, Foxconn Tech, G-Tech, Greatwall, Hon Hai, HTC, Huawei, Jabil Circuit, Foshan Nanning Electronics, Samsung SDI, SimTech, Lenovo, Lite-On Tech, Mag.Layers, Merry, Micro-Star, Nam Tai Electronics, NEC, Philips, Suntech, TE Connectivity, Techfaith Wireless, Samsung Electronics, Samsung SDI, Sanmina-SCI, Sanyo, Shin Zu Shing, Silitech, Skyworth, TCL, Shenzhen AU Optronics, Dell, Epistar, Genius Electronic Zhuhai Optical, Hi-P International, Lenovo, NEC, Toshiba, USI, Venture Corp, Yageo, ZTE Techtronic, Toshiba, TE Connectivity, Unimicron Tech, United Alloy-Tech, USI,Venture Corp, ZTE Panasonic, TDK, Toshiba, TPK, TPV, Tripod Beihai Flextronics, Founder, Panasonic, TE Connectivity Ability Enterprise, Asia Optical, Chaun Choung, Cheng Uei Precision , Chicony, Delta, DFI, Haikou Elcoteq, Flextronics, Foxlink Image, Genius, Gigabyte, G-Tech, Hi-P International, Hon Hai, Greatwall, Lite-OnTech Huawei, Jarllytec, Kingboard Chemical, Konka, Largan Precision, Lite-On Tech, NEC, Nokia, NXP, Samsung Electro-Mechanics, Samsung Electronics, Sanyo, Ta Yang, TDK, Techtronic, Samsung Electronics TE Connectivity, V-Tech, Wanshih, Wintek, Yageo Source: Barclays Research

26 May 2012 45 Barclays | The Asia PC Pulse (Issue No. 37)

APPENDIX IX: LCD TV BUYER/SUPPLIER MATRIX, 2012E

% of LCD TV ODM Hybrid LCD Brand/ ODM 2012 2011 2012E (mn units) outsourcing in YoY (%) target shipment TPV Hon Hai Vestel Compal Wistron Orion Amtran/Raken Pegatron Xoceco Briview TCL Hisense Skyworth Changhong Konka Funai 2012 Samsung ------0.0% Brand ranking 100% inhouse Brand units ------40.2 38.73.9% LGE 0.3%---2.4%------2.8% Brand ranking LGE#2 LGE#1 Brand units 0.1 - - - 0.7 ------29.0 24.7 17.4% Sony 7.3% 42.9% - 1.6% 10.5% ------62.3% Brand ranking Sony#3 Sony#1 Sony#4 Sony#2 Brand units 1.4 8.2 - 0.3 2.0 ------19.1 20.1 -5.0% Toshiba - - 1.7% 33.3% - - - 13.9% - 1.7% 8.3% 1.1% 3.6% - 2.8% - 66.4% Brand ranking Toshiba #7 Toshiba #1 Toshiba #2 Toshiba #6 Toshiba #3 Toshiba #8 Toshiba #4 Toshiba #5 Brand units - - 0.3 6.0 - - - 2.5 - 0.3 1.5 0.2 0.7 - 0.5 - 18.0 14.8 21.6% Sharp 3.3% 12.2% 5.7% - 4.1% ------25.2% Brand ranking Sharp#4 Sharp#1 Sharp#2 Sharp#3 Brand units 0.4 1.5 0.7 - 0.5 ------12.3 13.5 -8.9% Panasonic 12.6% - - 16.8% - - - - 0.8% 1.7% ------31.9% Brand ranking Panasonic #2 Panasonic #1 Panasonic #4 Panasonic #3 Brand units 1.5 - - 2.0 - - - - 0.1 0.2 ------11.9 11.0 8.2% Vizio 21.0% - - - 15.0% - 64.0% ------100.0% Brand ranking Vizio #2 Vizio #3 Vizio #1 100% outsourced Brand units 1.1 - - - 0.8 - 3.2 ------5.0 5.0 0.0% Philips 100.0% ------100.0% Brand ranking 100% to TPV 100% outsourced Brand units 7.5------7.5 7.50.0% Funai ------100.0% 0.0% Brand ranking 100% inhouse 100% inhouse Brand units ------7.37.3 6.315.9% TCL (brand) ------100.0% - - - - - 0.0% Brand ranking 100% inhouse 100% inhouse Brand units ------10.2 - - - - - 10.2 8.1 25.9% Hisense (brand)2.6%------97.4%---- 2.6% Brand ranking 97%+ inhouse Brand units 0.3 ------10.0 - - - - 10.3 8.8 17.0% Skyworth (brand)7.1%------92.9%--- 7.1% Brand ranking 90%+ inhouse Brand units 0.6 ------8.2 - - - 8.8 7.6 15.8% Konka (brand) ------100.0% - 0.0% Brand ranking 100% inhouse 100% inhouse Brand units ------7.4 - 7.4 6.3 17.5% Changhong (brand)5.6%------94.4%-- 5.6% Brand ranking 95%+ inhouse Brand units 0.4 ------6.8 - - 7.2 5.5 30.9% Haier 6.2%------1.5%------7.7% Brand ranking Haier #1 Haier #2 Brand units 0.4 ------0.1 ------6.5 5.5 18.2% China major 6 3.4% ------0.2% 20.2% 19.9% 16.2% 13.5% 14.7% - 3.6% China major 6 units 1.7 ------0.1 10.2 10.0 8.2 6.8 7.4 - 50.4 Best Buy 37.1% - - - 8.6% - - - 48.6% 5.7% ------100.0% Brand ranking Best Buy #2 Best Buy #3 Best Buy #1 Best Buy #4 100% outsourced Brand units 1.1 - - - 0.3 - - - 1.5 0.2 ------3.0 2.8 7% Walmart - - - - - 41.2% ------58.8% 100.0% Brand ranking Walmart #2 Walmart #1 100% outsourced Brand units -----0.4------0.61.0 0.911% Others 6.4% 1.4% 42.5% 1.4% 1.2% 19.7% 3.9% 2.5% 1.9% 3.6% 3.6% 3.6% 0.8% 6.9% 0.8% - Other Units 1.2 0.3 7.7 0.3 0.2 3.6 0.7 0.5 0.4 0.7 0.7 0.7 0.2 1.3 0.2 - 18.0 2012E Total Units 15.9 10.0 8.7 8.6 4.4 4.0 3.9 3.0 1.9 1.4 12.4 10.9 9.0 8.1 8.1 7.9 222.7 36% 2011E Total Units 13.0 8.7 8.3 5.5 7.2 4.0 3.8 2.9 2.1 1.5 10.3 9.6 7.5 6.9 6.1 6.0 205.1 35% YoY (%) 21.9% 14.8% 4.4% 54.8% -39.0% -1.0% 2.4% 3.2% -9.0% -6.7% 20.1% 13.1% 19.3% 17.4% 32.1% 31.5% 8.6% Source: Companies, Barclays Research estimates

26 May 2012 46 Barclays | The Asia PC Pulse (Issue No. 37)

APPENDIX X: LCD TV PANEL SUPPLY CHAIN MATRIX, 2012E

2012

(mn Unit) (mn Unit) Sharp Chimei YoY Samsung LGD AUO Panasonic CPT BOE IVO TCL Total CEC Innolux (%) Samsung 21.0 1.0 6.0 10.5 0.7 0.0 1.0 40.2 4%

LG Electronics 21.0 0.2 5.0 1.7 1.1 29.0 17%

SONY 11.0 2.5 0.1 1.5 4.0 19.1 -5%

Sharp 10.8 1.5 12.3 -9%

Philips 6.1 0.8 0.4 0.2 7.5 0%

Toshiba 5.2 5.9 2.3 4.5 18.0 22%

Panasonic 3.3 1.8 3.3 3.3 11.9 8%

Vizio 4.2 0.9 5.0 0%

Insignia 2.0 2.0 4.0 14%

Funai Electric 0.9 0.4 4.6 1.2 7.3 16%

Sanyo 2.0 0.5 0.5 3.0 -21%

Hisense 2.5 2.0 0.3 0.5 3.5 0.5 1.0 10.3 16%

TCL 3.0 0.2 0.3 1.5 0.3 5.0 10.2 25%

Skyworth 4.5 0.3 0.5 3.0 0.5 8.8 15%

Haier 0.8 0.5 2.8 1.5 1.0 6.5 18%

KONKA 1.5 2.0 2.5 0.5 1.0 7.5 19%

Changhong 1.3 1.5 2.5 1.0 1.0 7.3 32%

China major 6 9.1 10.7 0.9 7.8 11.8 0.5 0.5 4.5 0.0 5.0 50.40 21%

Others 5.5 4.0 0.5 1.5 1.0 0.5 1.0 1.0 15.0 -23%

Total 52.8 57.7 14.3 31.1 44.9 6.6 1.7 6.4 0.0 7.2 222.7 9%

YoY(%) 6% 10% -13% -4% 7% -35% 0% 190% NM 2308% 8.6%

Source: Companies, Barclays Research estimates

26 May 2012 47 Barclays | The Asia PC Pulse (Issue No. 37)

APPENDIX XI: ASIA EX-JAPAN TECHNOLOGY CAPEX 2009-2013E

Capex (US$, mn) Company Ticker Rating Price CY2009 CY2010 CY2011 CY2012E CY2013E Asia ex-Japan Data Networking & Wireline Equipment CCS 552 HK 3-UW 3.75 119 129 193 212 232 COMBA 2342 HK 1-OW 3.74 20 23 18 20 28 ZTE 763 HK 2-EW 15.30 334 472 471 475 557

Asia ex-Japan IT Hardware ACER 2353 TT 1-OW 30.60 6 -35 19 33 32 ASUSTEK 2357 TT 1-OW 297.50 68 39 26 55 61 CHENG UEI 2392 TT 1-OW 56.10 98 130 184 93 93 CHICONY 2385 TT 2-EW 55.70 89 58 102 47 47 COMPAL 2324 TT 2-EW 32.00 63 180 218 270 270 DARFON 8163 TT 1-OW 18.75 54 42 29 28 28 DIGITAL CHINA * 861 HK 1-OW 13.30 19 58 30 24 26 DYNAPACK 3211 TT 2-EW 156.50 4 7 11 9 9 EPISTAR 2448 TT 1-OW 63.10 118 194 131 101 84 EVERLIGHT 2393 TT 3-UW 50.00 23 41 51 33 34 FOXCONN TECH 2354 TT 2-EW 98.00 21 92 99 68 68 HON HAI 2317 TT 1-OW 83.20 460 2,513 4,354 2,683 4,054 INVENTEC 2356 TT 3-UW 9.67 146 75 560 135 135 JU TENG 3336 HK 3-UW 1.63 276 135 87 91 96 LENOVO 992 HK 1-OW 6.51 13 50 333 59 212 PEGATRON 4938 TT 1-OW 41.50 81 124 266 211 188 QUANTA 2382 TT 1-OW 81.90 141 375 370 242 242 SIMPLO 6121 TT 1-OW 209.00 16 28 45 32 32 SKYWORTH * 751 HK 1-OW 3.57 39 75 63 70 77 SUNREX 2387 TT 3-UW 14.55 13 11 22 18 18 SYNNEX 2347 TT 2-EW 67.40 22 34 26 29 39 SZS 3376 TT 2-EW 75.80 10 9 10 8 8 TPV 903 HK 2-EW 1.60 119 214 186 159 167 WISTRON 3231 TT 2-EW 40.60 192 324 439 287 287 * Lenovo, Digital China and Skyworth have March fiscal year-end (i.e. 12E represents FY13E)

Asia ex-Japan Wireless Products and Components AAC 2018 HK 1-OW 23.25 29 113 114 121 126 BYDE 285 HK 2-EW 1.98 106 89 160 176 203 CATCHER 2474 TT 1-OW 171.00 8 155 336 -304 -264 COMPAL COMM 8078 TT 3-UW 35.55 3 -2 17 34 27 FIH 2038 HK 1-OW 3.51 123 254 200 200 300 HTC 2498 TT 2-EW 407.00 64 170 306 68 101 LARGAN 3008 TT 1-OW 558.00 35 26 17 34 41 LITE-ON TECH 2301 TT 1-OW 35.50 126 274 118 118 101 SILITECH 3311 TT 1-OW 66.10 13 3 25 19 20 TRIPOD 3044 TT 1-OW 85.40 36 86 152 118 101 UNIMICRON 3037 TT 3-UW 28.60 361 228 338 236 209 WISTRON NEWEB 6285 TT 1-OW 53.80 32 48 57 51 51 YOUNG FAST 3622 TT 3-UW 55.80 26 31 104 68 68

Note: Stock ratings: 1-OW: 1-Overweight, 2-EW: 2-Equal Weight, 3-UW: 3-Underweight, RS: RS-Rating Suspended. Sector View: 1-Pos: 1-Positive, 2-Neu: 2-Neutral, 3- Neg: 3-Negative. Prices as of 21 May 2012 in local currency.

26 May 2012 48 Barclays | The Asia PC Pulse (Issue No. 37)

APPENDIX XII: ASIA EX-JAPAN TECHNOLOGY COMPARATIVE VALUATIONS

Ticker Rating Price PT MKTCap P/E (x) P/BV (x) ROE (%) Div. Yield (%) Stock (local) (US$m) CY12F CY13F CY12F CY13F CY12F CY13F CY12F CY13F PCs/NBs ACER 2353 TT 1-OW/2-Neu 30.30 45.00 2,769 11.0 6.5 1.0 0.9 9.2 14.4 7.1 9.6 ASUSTEK 2357 TT 1-OW/2-Neu 296.00 338.00 7,531 11.8 10.5 1.8 1.7 16.0 16.9 5.3 6.0 COMPAL 2324 TT 2-EW/2-Neu 31.60 33.00 4,693 8.4 7.3 1.0 1.0 12.3 13.9 4.8 5.9 GIGABYTE 2376 TT NR 25.35 -- 546 8.5 7.9 0.7 N/A 9.1 8.9 8.7 9.1 HON HAI 2317 TT 1-OW/2-Neu 83.20 125.00 30,057 9.2 7.3 1.3 1.1 14.7 16.0 2.2 2.7 INVENTEC 2356 TT 3-UW/2-Neu 9.66 10.00 1,132 6.6 6.5 0.5 0.5 7.6 7.4 8.7 8.5 LENOVO 992 HK 1-OW/2-Neu 6.53 8.50 8,691 14.0 10.6 3.5 2.9 26.7 29.6 3.5 4.7 MSI 2377 TT NR 13.60 -- 407 N/A N/A N/A N/A N/A N/A N/A N/A PEGATRON 4938 TT 1-OW/2-Neu 41.15 54.00 3,138 11.1 6.9 1.0 0.9 9.0 13.6 4.6 7.3 QUANTA 2382 TT 1-OW/2-Neu 77.70 92.00 10,083 10.6 8.4 2.2 1.9 21.5 24.1 5.7 7.1 WISTRON 3231 TT 2-EW/2-Neu 40.50 42.00 2,865 7.7 7.4 1.2 1.1 16.2 15.7 6.4 0.0 Mean 6,537 9.9 7.9 1.4 1.3 14.2 16.1 5.7 6.1 Average 10.2 8.1 1.7 1.5 16.5 18.4 4.0 4.6 Wireless equipment and products AAC 2018 HK 1-OW/1-Pos 23.25 27.30 3,676 14.6 11.3 4.0 3.3 29.7 31.7 2.7 3.5 BYD 1211 HK NR 15.40 -- 7,543 27.5 21.4 1.6 1.5 6.3 7.0 0.4 0.5 BYD ELEC 285 HK 2-EW/1-Pos 2.03 2.25 589 4.8 4.4 0.4 0.4 9.4 9.7 3.9 4.5 CHINA COMM 552 HK 3-UW/1-Pos 3.71 4.20 2,947 7.7 6.2 1.0 0.9 13.7 15.2 5.6 6.4 CHINA WIRELESS 2369 HK NR 1.04 -- 288 6.3 5.1 0.9 0.8 15.5 15.3 3.9 4.4 COMBA TELE 2342 HK 1-OW/1-Pos 3.69 8.30 725 5.1 5.3 1.2 1.0 24.7 20.7 4.8 5.7 COMPAL COMM 8078 TT 3-UW/1-Pos 37.80 42.00 776 11.2 12.0 3.0 2.7 27.5 23.7 6.2 5.8 COMPEQ 2313 TT NR 10.65 -- 429 16.6 15.0 N/A N/A N/A N/A N/A N/A FIH 2038 HK 1-OW/1-Pos 3.37 5.73 3,173 N/A 32.7 0.8 0.8 -0.9 2.5 0.0 0.0 HTC 2498 TT 2-EW/1-Pos 400.50 500.00 11,533 8.3 7.4 2.9 2.5 37.3 35.9 7.0 8.0 LG ELEC 066570 KS 2-EW/1-Pos 64,400 91,000 8,986 10.7 8.1 0.8 0.8 7.4 9.0 0.0 0.0 MERRY 2439 TT NR 51.60 -- 275 12.5 10.9 1.7 1.6 15.9 15.4 5.4 7.6 LARGAN 3008 TT 1-OW/1-Pos 545.00 660.00 2,471 14.3 10.6 3.5 2.9 26.6 30.0 2.8 3.3 SILITECH 3311 TT 1-OW/1-Pos 66.00 90.00 404 9.3 8.5 1.9 1.8 20.9 22.0 8.3 8.5 SIM TECH 2000 HK NR 0.45 -- 98 6.4 4.0 0.4 N/A 5.0 7.3 4.5 7.6 SUNNY OPTICAL 2382 HK NR 2.41 -- 310 6.8 5.8 1.2 1.0 17.3 18.6 5.8 7.3 TCL COMM 2618 HK NR 2.61 -- 377 4.0 3.6 0.9 0.8 24.6 23.6 8.7 9.8 UNIMICRON 3037 TT 3-UW/1-Pos 28.60 32.00 1,487 10.3 7.8 0.8 0.8 8.4 10.6 5.2 6.3 VTECH 303 HK NR 83.00 -- 2,667 93.2 81.5 35.3 33.5 38.5 42.1 7.8 8.6 YOUNG FAST 3622 TT 3-UW/1-Pos 56.90 55.00 288 41.4 13.8 0.8 0.8 2.0 5.7 0.9 2.6 ZTE 763 HK 2-EW/1-Pos 16.14 24.70 8,411 10.1 10.0 1.4 1.4 14.7 13.8 2.1 3.0 Mean 2,736 16.1 13.6 3.2 3.1 17.2 18.0 4.3 5.2 Average 16.7 15.0 3.4 3.1 18.8 19.4 3.3 3.8 Components CATCHER 2474 TT 1-OW/1-Pos 173.50 230.00 4,402 10.3 9.6 2.1 1.8 21.4 20.3 4.2 5.0 CHEIL INDUSTRIES 001300 KS 2-EW/1-Pos 94,900 105,000 4,243 17.3 14.4 1.5 1.4 8.4 9.3 0.7 1.0 CHENG UEI 2392 TT 1-OW/2-Neu 56.90 84.00 914 7.5 7.5 1.0 0.9 13.6 12.3 9.3 11.1 CHICONY 2385 TT 2-EW/2-Neu 55.20 56.00 1,202 9.9 9.5 1.9 1.7 19.3 18.9 6.3 6.3 DARFON 8163 TT 1-OW/2-Neu 17.90 26.00 203 21.7 11.7 0.6 0.6 3.0 5.4 3.4 5.6 D-LINK 2332 TT NR 20.50 -- 449 11.0 8.9 N/A N/A N/A N/A 5.0 6.4 DELTA 2308 TT NR 88.20 -- 7,173 15.8 13.9 2.6 N/A 16.8 22.7 4.4 5.3 DYNAPACK 3211 TT 2-EW/2-Neu 154.00 130.00 677 13.0 15.4 3.1 3.0 25.1 19.9 5.2 5.5 EPISTAR 2448 TT 1-OW/2-Neu 65.40 90.00 1,898 80.6 22.7 1.3 1.2 1.6 5.5 0.7 2.3 EVERLIGHT 2393 TT 3-UW/2-Neu 52.00 56.00 737 17.4 15.8 1.4 1.3 8.1 8.6 3.8 4.8 FOXCONN TECH 2354 TT 2-EW/2-Neu 97.00 123.00 3,845 10.3 8.5 1.8 1.5 18.4 18.9 1.5 2.1 HI-P INTL HIP SP NR 0.72 -- 494 7.3 6.2 1.0 0.9 11.3 12.7 5.6 5.8 JU TENG 3336 HK 3-UW/2-Neu 1.65 1.20 240 8.2 8.1 0.3 0.3 4.1 4.0 4.0 5.0 KINGBOARD CHEM 148 HK NR 17.18 -- 1,890 4.1 3.8 0.4 0.4 10.9 12.1 5.7 5.6 KYE 2365 TT NR 10.20 -- 108 N/A N/A N/A N/A N/A N/A N/A N/A LITE-ON IT 8008 TT NR 27.80 -- 857 8.4 7.6 N/A N/A 12.9 13.1 8.5 8.5 LITE-ON TECH 2301 TT 1-OW/1-Pos 35.50 44.00 2,772 10.2 9.0 0.9 0.9 9.1 10.2 8.5 9.0 SEMCO 009150 KS NR 93,800 -- 5,974 20.3 19.2 2.1 2.0 9.1 9.0 0.8 0.9 SIMPLO 6121 TT 1-OW/2-Neu 211.00 265.00 1,999 11.2 10.7 3.0 2.6 29.7 26.2 3.3 4.2 SUNREX 2387 TT 3-UW/2-Neu 14.90 18.00 187 7.8 7.5 0.7 0.6 8.6 8.6 6.7 7.4 SZS 3376 TT 2-EW/2-Neu 77.80 58.00 417 13.8 12.6 1.4 1.3 10.8 11.0 3.9 3.9 TECHTRONIC 669 HK NR 8.65 -- 2,024 60.9 51.8 8.8 7.9 15.9 16.7 2.8 3.5 TRIPOD 3044 TT 1-OW/1-Pos 85.40 100.00 1,517 10.1 8.8 1.8 1.6 18.6 19.3 4.7 4.9 VENTURE VMS SP NR 7.63 -- 1,643 12.2 11.0 1.1 1.1 9.0 9.8 7.2 7.2 WISTRON NEWEB 6285 TT 1-OW/1-Pos 53.70 90.00 520 7.7 6.3 1.5 1.4 20.4 23.4 N/A N/A YAGEO 2327 TT NR 8.21 -- 611 9.4 N/A 0.5 N/A 5.6 N/A N/A N/A Mean 1,807 16.3 12.5 1.8 1.6 13.0 13.8 4.6 5.3 Average 18.0 14.1 2.1 1.9 14.1 15.3 3.7 4.3 China IT solutions/Software ASIAINFO ASIA US NR 11.10 -- 805 9.7 8.4 0.8 0.7 6.7 7.5 0.0 0.0 CAMELOT CIS US 1-OW/2-Neu 2.30 6.00 102 4.6 0.0 0.3 0.0 0.1 0.0 0.0 0.0 DIGTIAL CHINA 861 HK 1-OW/2-Neu 12.88 19.00 1,812 9.1 7.4 1.7 1.4 19.5 20.8 4.0 4.8 HISOFT HSFT US NR 14.62 -- 459 12.2 10.1 N/A N/A 16.9 18.0 0.0 0.0 ISOFTSTONE ISS US NR 7.09 -- 394 9.7 7.7 0.9 0.7 12.5 12.8 0.0 0.0 KINGDEE 268 HK NR 1.35 -- 437 10.7 9.1 1.6 1.5 15.7 16.6 3.0 2.9 SYNNEX 2347 TT 2-EW/2-Neu 67.20 75.50 3,512 13.3 11.7 2.3 2.1 17.7 18.5 3.7 4.4 VANCEINFO VIT US NR 9.67 -- 409 11.1 8.5 1.3 1.2 11.0 13.0 0.0 0.0 Mean 991 10.0 7.9 1.3 1.1 12.5 13.4 1.3 1.5 Average 11.4 9.6 1.8 1.6 16.0 17.0 2.7 3.2 Hardware - Mean 2,792 14.4 11.6 2.1 2.0 14.5 15.5 4.3 4.9 Hardware - Average 14.2 11.9 2.3 2.1 16.6 17.9 3.6 4.2

26 May 2012 49 Barclays | The Asia PC Pulse (Issue No. 37)

APPENDIX XII: ASIA EX-JAPAN TECHNOLOGY COMPARATIVE VALUATIONS (CONT’D)

Ticker Rating Price PT MKTCap P/E (x) P/BV (x) ROE (%) Div. Yield (%) Stock (local) (US$m) CY12F CY13F CY12F CY13F CY12F CY13F CY12F CY13F TFT-LCDs AP Systems 054620 KS 1-OW/1-Pos 12,700 19,000 234 8.3 6.4 2.4 1.7 33.6 31.3 0.8 0.8 AUO 2409 TT 1-OW/1-Pos 12.10 18.00 3,610 N/A N/A 0.5 0.5 -16.5 -6.2 0.6 1.3 CORETRONIC 5371 TT 3-UW/1-Pos 25.50 24.00 624 9.9 9.5 0.6 0.6 6.8 6.4 6.3 7.6 CMI 3481 TT 3-UW/1-Pos 12.05 12.00 2,978 N/A N/A 0.5 0.5 -21.7 -4.0 N/A N/A CPT 2475 TT NR 1.13 -- 247 N/A N/A 0.3 N/A N/A N/A N/A N/A E Ink 8069 TT 1-OW/1-Pos 28.20 50.00 1,030 11.0 6.2 1.1 1.0 10.1 17.2 N/A N/A G-TECH 3149 TT 2-EW/1-Pos 83.10 79.00 659 16.6 12.4 3.6 3.0 23.8 26.3 1.2 2.4 LG DISPLAY 034220 KS 1-OW/1-Pos 20,850 36,000 6,361 12.3 5.7 0.7 1.1 5.8 11.5 0.0 1.4 RADIANT 6176 TT 2-EW/1-Pos 124.50 130.00 1,846 9.9 9.7 2.7 2.5 29.3 26.6 6.6 6.9 SAMSUNG SDI 006400 KS 1-OW/2-Neu 156,000 220,000 6,060 12.0 9.1 1.1 1.5 9.6 11.6 1.5 1.6 SFA Engineering 056190 KS 1-OW/1-Pos 54,600 68,000 836 11.3 10.1 2.4 2.0 22.6 20.8 2.2 2.4 SKYWORTH 751 HK 1-OW/2-Neu 3.54 5.60 1,227 5.0 4.7 0.9 0.9 20.3 19.4 5.5 6.6 TSMT 6278 TT 1-OW/1-Pos 56.30 85.00 457 9.0 7.3 1.0 0.9 11.9 13.0 5.6 6.8 TPK 3673 TT 2-EW/1-Pos 378.50 400.00 3,010 6.8 6.3 2.5 1.9 43.2 34.5 3.2 3.2 TPV 903 HK 2-EW/2-Neu 1.59 2.20 480 3.6 3.3 0.3 0.2 7.0 7.4 8.2 9.0 TCL MULTIMEDIA 1070 HK NR 4.18 -- 710 8.3 7.9 1.3 1.1 18.0 17.1 4.2 4.5 TRULY INTERNATIONAL 732 HK NR 1.14 -- 406 5.7 4.8 0.7 0.6 12.4 13.0 6.8 7.7 WINTEK 2384 TT 3-UW/1-Pos 17.20 19.00 958 20.6 9.3 0.9 0.9 4.4 9.4 2.9 5.8 Mean 1,810 10.0 7.5 1.3 1.2 13.0 15.0 3.7 4.5 Average 10.8 7.5 1.2 1.2 8.5 12.2 2.2 3.0 Semiconductors ARDENTEC 3264 TT NR 19.70 -- 303 9.3 9.2 1.0 N/A 14.8 N/A 8.0 8.6 ASE 2311 TT 2-EW/2-Neu 27.50 31.00 6,181 12.0 10.2 1.7 1.5 14.5 15.5 2.4 4.2 ASM PACIFIC 522 HK NR 99.15 -- 5,076 19.2 14.0 5.5 4.6 30.6 36.6 2.8 3.9 Hermes Microvisions 3658 TT 1-OW/2-Neu 292.00 520.00 592 16.0 12.7 7.9 5.5 62.0 51.1 2.5 3.9 HOLTEK 6202 TT NR 32 -- 241 11.1 11.0 N/A N/A N/A N/A 7.2 N/A HYNIX 000660 KS 1-OW/2-Neu 23,600.00 33,000.00 13,968 73.4 10.1 1.6 1.9 2.4 14.4 0.2 0.4 INOTERA 3474 TT NR 7.42 -- 1,355 N/A N/A 1.3 1.7 -36.9 -12.7 0.0 0.0 KINSUS 3189 TT 1-OW/2-Neu 87.50 119.00 1,319 12.7 11.2 1.7 1.6 13.8 14.7 5.0 5.5 MEDIATEK 2454 TT 1-OW/2-Neu 262.00 340.00 10,162 22.9 18.5 2.5 2.4 11.2 13.3 3.4 3.2 MOTECH 6244 TT NR 45.40 -- 671 N/A N/A 1.0 N/A N/A 3.8 0.4 0.9 MSTAR 3697 TT 1-OW/2-Neu 172.50 220.00 3,121 13.1 11.5 2.6 2.4 20.7 21.9 5.2 5.3 NAN YA PCB 8046 TT 3-UW/2-Neu 49.00 55.00 1,067 11.8 8.8 0.9 0.8 7.5 9.7 4.1 4.1 NANYA TECH 2408 TT NR 2.35 -- 1,181 N/A N/A N/A 4.7 NM NM 0.0 0.0 NOVATEK 3034 TT 1-OW/1-Pos 84.50 100.00 1,715 11.0 9.7 2.1 2.0 19.7 21.1 5.9 6.4 POWERCHIP 5346 TT NR 0.64 -- 120 N/A N/A 0.5 N/A N/A N/A 0.0 0.0 POWERTECH 6239 TT NR 54.70 -- 1,477 8.5 7.5 1.1 1.2 14.9 15.0 4.6 4.8 REALTEK 2379 TT NR 58 -- 971 12.7 13.2 1.6 1.6 11.9 11.8 4.2 4.6 SAMSUNG ELEC 005930 KS 1-OW/3-Neg 1,166,000 1,800,000 146,445 7.9 6.8 1.7 2.1 22.9 21.4 1.1 0.8 SILICON MOTION SIMO US NR 13.23 -- 417 N/A N/A N/A N/A N/A N/A N/A N/A SMIC 981 HK NR 0.35 -- 1,222 N/A N/A 4.4 4.6 -6.4 -4.5 0.0 0.0 SPIL 2325 TT 1-OW/2-Neu 31.15 42.00 3,281 16.8 14.1 1.6 1.5 9.7 11.2 4.6 4.3 SPREADTRUM SPRD US NR 16.10 -- 757 7.7 7.0 1.9 1.5 29.6 27.2 2.4 2.3 TSMC 2330 TT 2-EW/2-Neu 81.80 84.00 71,649 13.7 14.3 3.0 2.7 23.1 20.0 3.7 3.7 UMC 2303 TT 2-EW/2-Neu 13.25 15.00 5,789 12.9 10.2 0.8 0.8 6.4 7.8 3.8 5.4 VANGUARD 5347 TT 1-OW/2-Neu 14.40 20.00 788 16.8 10.1 1.1 1.1 6.7 10.8 4.2 4.5 VIA 2388 TT NR 15.20 -- 507 N/A N/A N/A N/A N/A N/A N/A N/A VPEC 2455 TT 1-OW/2-Neu 45.80 70.00 345 15.3 13.3 2.6 2.2 18.0 18.1 1.7 1.9 Win Semi 3105 TT 2-EW/2-Neu 42.00 46.00 885 13.8 12.6 2.4 2.2 18.6 18.2 2.9 3.2 Mean 10,057 16.1 11.2 2.2 2.3 14.4 15.7 3.1 3.3 Average 14.0 9.9 2.1 2.3 20.2 19.6 2.1 2.1 Semi/TFT - Mean 6,812 13.6 9.7 1.8 1.8 13.8 15.4 3.3 3.7 Semi/TFT - Average 13.7 9.7 2.0 2.2 19.0 18.9 2.1 2.1 Indian Software & IT Services HCL Tech HCLT IN 1-OW/2-Neu 483.40 528.00 6,123 14.3 12.4 3.4 2.7 23.0 24.0 0.8 1.7 Infosys INFO IN 1-OW/2-Neu 2,382.85 3,010.00 25,017 16.2 14.6 4.3 2.9 28.6 25.5 1.7 2.4 TCS TCS IN 2-EW/2-Neu 1,210.65 1,230.00 43,322 21.6 17.7 7.6 5.6 38.3 35.4 2.0 3.8 Wipro WPRO IN 3-UW/2-Neu 391.25 360.00 17,591 16.9 13.1 3.4 2.3 21.6 19.4 1.5 1.5 Software & IT Services- Mean 19.2 15.4 5.5 4.0 30.0 27.4 1.8 2.7 Software & IT Services- Average 20.2 16.4 6.4 4.7 33.5 30.8 1.9 3.1 Asia Ex-Japan Tech - Mean 3,864 13.1 10.3 2.0 1.9 14.5 15.7 3.6 4.2 Asia Ex-Japan Tech - Average 12.9 11.1 2.9 2.6 22.6 21.6 2.5 2.8 Note: Stock ratings: 1-OW: 1-Overweight, 2-EW: 2-Equal Weight, 3-UW: 3-Underweight, RS: RS-Rating Suspended. Sector View: 1-Pos: 1-Positive, 2-Neu: 2-Neutral, 3- Neg: 3-Negative. Prices as of 21 May 2012 in local currency. Estimates for not rated (NR) companies are consensus estimates from Bloomberg. Our Asia ex-Japan sector ratings are as follows: Semiconductors (3-Negative), LCD Displays (1-Positive), Wireless Equipment & Products (1-Positive), IT Hardware (2-Neutral). For full disclosures on each rated company, including details of company-specific valuation methodology and risks, please refer to: http://publicresearch.barcap.com Source: Companies, Barclays Research

26 May 2012 50 Barclays | The Asia PC Pulse (Issue No. 37)

ANALYST(S) CERTIFICATION(S) We, Kirk Yang, Jerry Wu and Wayne Dong, hereby certify (1) that the views expressed in this research report accurately reflect our personal views about any or all of the subject securities or issuers referred to in this research report and (2) no part of our compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this research report.

IMPORTANT DISCLOSURES CONTINUED

When an equity research report covers six or more subject companies, Barclays generally does not include specific conflict of interest disclosures regarding the subject companies and instead provides the reader with instructions about how to view or obtain the applicable conflict of interest disclosures. In order to comply with the requirements of the Korea Financial Investment Association, specific disclosures about subject companies with securities listed on the Korea Exchange are included herein. To access important disclosures, including, where relevant, price targets, regarding other companies that are the subject of this research report, please send a written request to: Barclays Research Compliance, 745 Seventh Avenue, 17th Floor, New York, NY 10019 or refer to http://publicresearch.barcap.com or call 1-212-526-1072. The analysts responsible for preparing this research report have received compensation based upon various factors including the firm's total revenues, a portion of which is generated by investment banking activities. Research analysts employed outside the US by affiliates of Barclays Capital Inc. are not registered/qualified as research analysts with FINRA. These analysts may not be associated persons of the member firm and therefore may not be subject to NASD Rule 2711 and incorporated NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst’s account. Analysts regularly conduct site visits to view the material operations of covered companies, but Barclays policy prohibits them from accepting payment or reimbursement by any covered company of their travel expenses for such visits. In order to access Barclays Statement regarding Research Dissemination Policies and Procedures, please refer to https://live.barcap.com/publiccp/RSR/nyfipubs/disclaimer/disclaimer-research-dissemination.html. The Corporate and Investment Banking division of Barclays produces a variety of research products including, but not limited to, fundamental analysis, equity-linked analysis, quantitative analysis, and trade ideas. Recommendations contained in one type of research product may differ from recommendations contained in other types of research products, whether as a result of differing time horizons, methodologies, or otherwise. Materially Mentioned Stocks (Ticker, Date, Price) Acer Inc. (2353.TW, 25-May-2012, TWD 29.50), 1-Overweight/2-Neutral Asia Pacific Systems (054620.KS, 25-May-2012, KRW 12550.00), 1-Overweight/1-Positive Asustek Computer Inc. (2357.TW, 25-May-2012, TWD 286.00), 1-Overweight/2-Neutral Cheil Industries (001300.KS, 25-May-2012, KRW 95700.00), 2-Equal Weight/1-Positive Compal Electronics Inc. (2324.TW, 25-May-2012, TWD 31.40), 2-Equal Weight/2-Neutral Inventec Inc. (2356.TW, 25-May-2012, TWD 9.60), 3-Underweight/2-Neutral LG Display (034220.KS, 25-May-2012, KRW 20050.00), 1-Overweight/1-Positive LG Electronics (066570.KS, 25-May-2012, KRW 66800.00), 2-Equal Weight/1-Positive Pegatron Corp. (4938.TW, 25-May-2012, TWD 39.95), 1-Overweight/2-Neutral Quanta Computer Inc. (2382.TW, 25-May-2012, TWD 75.50), 1-Overweight/2-Neutral Samsung Electronics (005930.KS, 25-May-2012, KRW 1225000.00), 1-Overweight/2-Neutral Samsung SDI (006400.KS, 25-May-2012, KRW 153500.00), 1-Overweight/2-Neutral SFA Engineering (056190.KS, 25-May-2012, KRW 55100.00), 1-Overweight/1-Positive SK Hynix (000660.KS, 25-May-2012, KRW 22000.00), 1-Overweight/2-Neutral Wistron Corporation (3231.TW, 25-May-2012, TWD 37.35), 2-Equal Weight/2-Neutral Other Material Conflicts The Corporate and Investment Banking Division of Barclays is providing investment banking services to Dell Inc. in relation to its acquisition of Wyse Technology. The Corporate and Investment Banking Division of Barclays is providing investment banking services to Microsoft in connection with its agreement to merge its interactive self-service assets into 24/7 Inc. Guide to the Barclays Fundamental Equity Research Rating System: Our coverage analysts use a relative rating system in which they rate stocks as 1-Overweight, 2-Equal Weight or 3-Underweight (see definitions below) relative to other companies covered by the analyst or a team of analysts that are deemed to be in the same industry sector (the "sector coverage universe"). In addition to the stock rating, we provide sector views which rate the outlook for the sector coverage universe as 1-Positive, 2-Neutral or 3- Negative (see definitions below). A rating system using terms such as buy, hold and sell is not the equivalent of our rating system. Investors should carefully read the entire research report including the definitions of all ratings and not infer its contents from ratings alone.

26 May 2012 51 Barclays | The Asia PC Pulse (Issue No. 37)

IMPORTANT DISCLOSURES CONTINUED Stock Rating 1-Overweight - The stock is expected to outperform the unweighted expected total return of the sector coverage universe over a 12-month investment horizon. 2-Equal Weight - The stock is expected to perform in line with the unweighted expected total return of the sector coverage universe over a 12- month investment horizon. 3-Underweight - The stock is expected to underperform the unweighted expected total return of the sector coverage universe over a 12-month investment horizon. RS-Rating Suspended - The rating and target price have been suspended temporarily due to market events that made coverage impracticable or to comply with applicable regulations and/or firm policies in certain circumstances including where the Corporate and Investment Banking Division of Barclays is acting in an advisory capacity in a merger or strategic transaction involving the company. Sector View 1-Positive - sector coverage universe fundamentals/valuations are improving. 2-Neutral - sector coverage universe fundamentals/valuations are steady, neither improving nor deteriorating. 3-Negative - sector coverage universe fundamentals/valuations are deteriorating. Below is the list of companies that constitute the "sector coverage universe":

Asia ex-Japan IT Hardware Acer Inc. (2353.TW) Asustek Computer Inc. (2357.TW) Cheng Uei Precision Industry Co., Ltd. (2392.TW) Chicony Electronics (2385.TW) Compal Electronics Inc. (2324.TW) Darfon Electronics (8163.TW) Digital China Holdings Ltd. (0861.HK) Dynapack International Technology Corp. Epistar Corporation (2448.TW) (3211.TWO) Everlight Electronics (2393.TW) Foxconn Technology Co., Ltd. (2354.TW) Hon Hai Precision Industry Co., Ltd. (2317.TW) Inventec Inc. (2356.TW) Ju Teng International Co., Ltd. (3336.HK) Lenovo Group Ltd. (0992.HK) Pegatron Corp. (4938.TW) Quanta Computer Inc. (2382.TW) Samsung SDI (006400.KS) Shin Zu Shing Co., Ltd. (3376.TW) Simplo Technology Co., Ltd. (6121.TWO) Skyworth Digital Holdings Ltd. (0751.HK) Sunrex Technology (2387.TW) Synnex Technology International Corp. TPV Technology Ltd. (0903.HK) (2347.TW) Wistron Corporation (3231.TW) Asia ex-Japan LCD Displays Asia Pacific Systems (054620.KS) AU Optronics Corp. (2409.TW) Cheil Industries (001300.KS) Chimei InnoLux Corp. (3481.TW) Coretronic Corporation (5371.TWO) E Ink Holdings Inc. (8069.TWO) G-TECH Optoelectronics Corp. (3149.TW) LG Display (034220.KS) Novatek Microelectronics Corp. (3034.TW) Radiant Opto-Electronics Corp. (6176.TW) SFA Engineering (056190.KS) Taiwan Surface Mounting Technology (6278.TW) TPK Holding Co., Ltd. (3673.TW) Wintek Corporation (2384.TW) Asia ex-Japan Semiconductors Advanced Semiconductor Engineering Hermes Microvision Inc. (3658.TW) Kinsus Interconnect Technology (3189.TW) (2311.TW) MediaTek Inc. (2454.TW) MStar Semiconductor, Inc. (3697.TW) Nan Ya Printed Circuit Board (8046.TW) Samsung Electronics (005930.KS) Siliconware Precision Industries (2325.TW) SK Hynix (000660.KS) TSMC (2330.TW) United Microelectronics Corp. (2303.TW) Vanguard International Semiconductor (5347.TWO) Visual Photonics Epitaxy Co., Ltd. (2455.TW) Win Semiconductors Corp. (3105.TWO) Asia ex-Japan Wireless Equipment & Products AAC Technologies Holdings (2018.HK) BYD Electronic (0285.HK) Catcher Technology Co., Ltd. (2474.TW) Compal Communications Inc. (8078.TW) Foxconn International Holdings (2038.HK) HTC Corp. (2498.TW) Largan Precision Co., Ltd. (3008.TW) LG Electronics (066570.KS) Lite-on Technology Corp. (2301.TW) Silitech Technology Corp. (3311.TW) Tripod Technology Corp. (3044.TW) Unimicron Technology Corp. (3037.TW) Wistron NeWeb Corp. (6285.TW) Young Fast Optoelectronics Co., Ltd. (3622.TW)

26 May 2012 52 Barclays | The Asia PC Pulse (Issue No. 37)

IMPORTANT DISCLOSURES CONTINUED

Distribution of Ratings: Barclays Equity Research has 2323 companies under coverage. 43% have been assigned a 1-Overweight rating which, for purposes of mandatory regulatory disclosures, is classified as a Buy rating; 56% of companies with this rating are investment banking clients of the Firm. 42% have been assigned a 2-Equal Weight rating which, for purposes of mandatory regulatory disclosures, is classified as a Hold rating; 48% of companies with this rating are investment banking clients of the Firm. 13% have been assigned a 3-Underweight rating which, for purposes of mandatory regulatory disclosures, is classified as a Sell rating; 41% of companies with this rating are investment banking clients of the Firm. Guide to the Barclays Research Price Target: Each analyst has a single price target on the stocks that they cover. The price target represents that analyst's expectation of where the stock will trade in the next 12 months. Upside/downside scenarios, where provided, represent potential upside/potential downside to each analyst's price target over the same 12-month period. Barclays offices involved in the production of equity research: London Barclays Bank PLC (Barclays, London) New York Barclays Capital Inc. (BCI, New York) Tokyo Barclays Capital Japan Limited (BCJL, Tokyo) São Paulo Banco Barclays S.A. (BBSA, São Paulo) Hong Kong Barclays Bank PLC, Hong Kong branch (Barclays Bank, Hong Kong) Toronto Barclays Capital Canada Inc. (BCCI, Toronto) Johannesburg Absa Capital, a division of Absa Bank Limited (Absa Capital, Johannesburg) Mexico City Barclays Bank Mexico, S.A. (BBMX, Mexico City) Taiwan Barclays Capital Securities Taiwan Limited (BCSTW, Taiwan) Seoul Barclays Capital Securities Limited (BCSL, Seoul) Mumbai Barclays Securities (India) Private Limited (BSIPL, Mumbai) Singapore Barclays Bank PLC, Singapore branch (Barclays Bank, Singapore)

26 May 2012 53 Barclays | The Asia PC Pulse (Issue No. 37)

IMPORTANT DISCLOSURES CONTINUED Asia Pacific Systems (054620 KS / 054620.KS) Stock Rating Sector View KRW 12550.00 (25-May-2012) 1-OVERWEIGHT 1-POSITIVE Rating and Price Target Chart - KRW (as of 25-May-2012) Currency=KRW

Date Closing Price Rating Price Target

20,000 10-Feb-2012 13250.00 1-Overweight 19000.00

18,000

16,000

14,000

12,000

10,000

8,000

6,000

4,000

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Barclays Bank PLC and/or an affiliate is a market-maker and/or liquidity provider in securities issued by Asia Pacific Systems or one of its affiliates. Barclays Bank PLC and/or an affiliate trades regularly in the securities of Asia Pacific Systems. Valuation Methodology: Our 12-month price target of KRW19,000 for AP Systems is based on 12.0x 2012E P/E, which is the average multiple of the global and Korean OLED equipment peer group. We do not view a P/E of 12.0x as demanding given the following: 1) prospective EPS growth for AP Systems is 183% for 2012 on our estimates and 2) it is one of only a few pure OLED supply-chain companies. AP Systems' share is trading at 8.9x our estimate for 2012, implying potential upside of 39% to our price target.. Risks which May Impede the Achievement of the Barclays Research Price Target: The key downside risks to our price target being achieved, in our view, include the following: 1) an unexpected cutback in SMD's OLED capex given that we expect the company to generate 79% of revenue from SMD in 2012; 2) lower-than-expected capacity for SMD's A3 OLED line; and 3) slower-than-expected execution in OLED equipment development that could materially hamper investors' sentiment. General risks to the OLED sector include the following: 1) worse-than-expected execution of OLED development, especially for TV applications; 2) a lower-than-expected ASP premium over LCD; and 3) the emergence of an alternative technology, such as crystal LEDs, that could have a competitive edge in initial investment cost and power consumption.

26 May 2012 54 Barclays | The Asia PC Pulse (Issue No. 37)

IMPORTANT DISCLOSURES CONTINUED Cheil Industries (001300 KS / 001300.KS) Stock Rating Sector View KRW 95700.00 (25-May-2012) 2-EQUAL WEIGHT 1-POSITIVE Rating and Price Target Chart - KRW (as of 25-May-2012) Currency=KRW

Date Closing Price Rating Price Target 0.14M 03-May-2012 99000.00 105000.00

0.13M 10-Feb-2012 98000.00 2-Equal Weight99000.00

0.12M

0.11M

0.10M

90,000.00

80,000.00

70,000.00

60,000.00

50,000.00

40,000.00

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Barclays Bank PLC and/or an affiliate is a market-maker and/or liquidity provider in securities issued by Cheil Industries or one of its affiliates. Barclays Bank PLC and/or an affiliate has received compensation for investment banking services from Cheil Industries in the past 12 months. Barclays Bank PLC and/or an affiliate trades regularly in the securities of Cheil Industries. Barclays Bank PLC and/or an affiliate has received non-investment banking related compensation from Cheil Industries within the past 12 months. Cheil Industries is, or during the past 12 months has been, an investment banking client of Barclays Bank PLC and/or an affiliate. Cheil Industries is, or during the past 12 months has been, a non-investment banking client (securities related services) of Barclays Bank PLC and/or an affiliate. Valuation Methodology: Our 12-month price target of KRW105,000 for Cheil Industries is set using a P/B-based SOTP valuation, equivalent to 18.6x 2012E EPS and 1.7x 2012E BPS. We apply a SOTP valuation to reflect different profitablilty of each division. Risks which May Impede the Achievement of the Barclays Research Price Target: Downside risks to our price target include 1) a continuing slowdown in spread of petrochemical products; 2) weaker-than-expected macro economy, resulting in slower demand for end-products; and 3) slower-than-expected execution in OLED materials, which could materially hamper investors' sentiment. Upside risks to our price target include 1) strong demand recovery in petrochemical products in emerging markets, 2) stronger-than-expected macro/local economy leading to higher end demand for apparels and IT products, and 3) great execution in OLED materials, such as phosphorescent green/blue materials and flexible substrates.

26 May 2012 55 Barclays | The Asia PC Pulse (Issue No. 37)

IMPORTANT DISCLOSURES CONTINUED LG Display (034220 KS / 034220.KS) Stock Rating Sector View KRW 20050.00 (25-May-2012) 1-OVERWEIGHT 1-POSITIVE Rating and Price Target Chart - KRW (as of 25-May-2012) Currency=KRW

Date Closing Price Rating Price Target 48,000 28-Nov-2011 24450.00 1-Overweight 36000.00 46,000

44,000

42,000

40,000

38,000

36,000

34,000

32,000

30,000

28,000

26,000

24,000

22,000

20,000

18,000

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Barclays Bank PLC and/or an affiliate is a market-maker and/or liquidity provider in securities issued by LG Display or one of its affiliates. Barclays Bank PLC and/or an affiliate trades regularly in the securities of LG Display. Barclays Bank PLC and/or an affiliate has received non-investment banking related compensation from LG Display within the past 12 months. LG Display is, or during the past 12 months has been, a non-investment banking client (securities related services) of Barclays Bank PLC and/or an affiliate. Valuation Methodology: We use the cyclical context of historical P/B and apply the mid-cycle (three-year average) P/B of 1.2x to set our target price of KRW36,000, given our expectation of an upcycle in specialty panels (accounting for 25% of revenue) combined with a recovery cycle in commodity panels (accounting for 75% of revenue). We use a relatively shorter range for historical valuation as the company has shown a de- rating trend since 2006 when global LCD TV penetration started to exceed 50% on an annual basis. Risks which May Impede the Achievement of the Barclays Research Price Target: The key risks that could keep our price target from being achieved, in our view, include the following: 1) weaker-than-expected TV demand in China after the market reaches a saturation point as well as in Europe due to concerns about the macro economy in that region and 2) execution risks in manufacturing specialty panels, especially for the New iPad and iPhone 5.

26 May 2012 56 Barclays | The Asia PC Pulse (Issue No. 37)

IMPORTANT DISCLOSURES CONTINUED LG Electronics (066570 KS / 066570.KS) Stock Rating Sector View KRW 66800.00 (25-May-2012) 2-EQUAL WEIGHT 1-POSITIVE Rating and Price Target Chart - KRW (as of 25-May-2012) Currency=KRW

Date Closing Price Rating Price Target 0.15M 19-Apr-2012 75500.00 91000.00 0.14M 10-Feb-2012 86900.00 2-Equal Weight 87000.00

0.13M

0.12M

0.11M

0.10M

90,000.00

80,000.00

70,000.00

60,000.00

50,000.00

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Barclays Bank PLC and/or an affiliate is a market-maker and/or liquidity provider in securities issued by LG Electronics or one of its affiliates. Barclays Bank PLC and/or an affiliate has received compensation for investment banking services from LG Electronics in the past 12 months. Barclays Bank PLC and/or an affiliate expects to receive or intends to seek compensation for investment banking services from LG Electronics within the next 3 months. Barclays Bank PLC and/or an affiliate trades regularly in the securities of LG Electronics. Barclays Bank PLC and/or an affiliate has received non-investment banking related compensation from LG Electronics within the past 12 months. LG Electronics is, or during the past 12 months has been, an investment banking client of Barclays Bank PLC and/or an affiliate. LG Electronics is, or during the past 12 months has been, a non-investment banking client (securities related services) of Barclays Bank PLC and/or an affiliate. Valuation Methodology: Our KRW91,000 PT for LG Electronics is based on 1.2x P/B on 2012E BPS, which is -1 standard deviation (STDV) from its historical average, reflecting a lower forecast ROE profile. W use a P/B valuation with historical multiples, due to the expected low ROE profile of its loss-making business. Risks which May Impede the Achievement of the Barclays Research Price Target: Key downside risk to our KRW87,000 PT for LG Electronics are a delayed recovery of the telecom division, due to weak execution. Upside risk is a stronger-than-expected turnaround of the handset division. General risks to the OLED sector include: 1) worse-than-expected execution of OLED development, especially for TV applications; 2) a lower- than-expected ASP premium over LCD; and 3) the emergence of an alternative technology such as crystal LEDs that could have a competitive edge in initial investment cost and power consumption.

26 May 2012 57 Barclays | The Asia PC Pulse (Issue No. 37)

IMPORTANT DISCLOSURES CONTINUED Samsung Electronics (005930 KS / 005930.KS) Stock Rating Sector View KRW 1225000.00 (25-May-2012) 1-OVERWEIGHT 2-NEUTRAL Rating and Price Target Chart - KRW (as of 25-May-2012) Currency=KRW

2.0M Date Closing Price Rating Price Target 30-Apr-2012 1390000.00 1800000.00 1.8M 15-Mar-2012 1250000.00 1500000.00 30-Jan-2012 1115000.00 1300000.00 1.6M 08-Nov-2011 970000.00 1-Overweight 1250000.00

1.4M

1.2M

1.0M

0.8M

0.6M

0.4M

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Barclays Bank PLC and/or an affiliate is a market-maker and/or liquidity provider in securities issued by Samsung Electronics or one of its affiliates. Barclays Bank PLC and/or an affiliate has received compensation for investment banking services from Samsung Electronics in the past 12 months. Barclays Bank PLC and/or an affiliate trades regularly in the securities of Samsung Electronics. Barclays Bank PLC and/or an affiliate has received non-investment banking related compensation from Samsung Electronics within the past 12 months. Samsung Electronics is, or during the past 12 months has been, an investment banking client of Barclays Bank PLC and/or an affiliate. Samsung Electronics is, or during the past 12 months has been, a non-investment banking client (securities related services) of Barclays Bank PLC and/or an affiliate. Valuation Methodology: Our 12-month price target of KRW1.8mn for SEC is based on a cyclical context historical P/B valuation. In our valuation, we apply a target P/B multiple of 2.3x to our estimate for the average BVPS of 2012 and 2013. Our target multiple is higher than the stock's historical average for the past 10 years as the expected ROE for 2012 of 22% exceeds the 10-year average of 20%. Our new price target of KRW1.8mn is applicable to 12.5 x 2012 P/E, which is in line with the 10-year average of 12.0x. Risks which May Impede the Achievement of the Barclays Research Price Target: Key risks to our price target and, thus, our positive call on SEC include 1) a double dip in global economy, which might impact demand across the board; 2) much slower-than-expected (flexible) OLED ramp-up, which is the key to market share gains in smart devices, in our view; and 3) materially negative results from any kind of lawsuit.

26 May 2012 58 Barclays | The Asia PC Pulse (Issue No. 37)

IMPORTANT DISCLOSURES CONTINUED Samsung SDI (006400 KS / 006400.KS) Stock Rating Sector View KRW 153500.00 (25-May-2012) 1-OVERWEIGHT 2-NEUTRAL Rating and Price Target Chart - KRW (as of 25-May-2012) Currency=KRW

0.24M Date Closing Price Rating Price Target 30-Apr-2012 163000.00 220000.00 0.22M 10-Feb-2012 151500.00 1-Overweight 180000.00

0.20M

0.18M

0.16M

0.14M

0.12M

0.10M

80,000.00

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Barclays Bank PLC and/or an affiliate is a market-maker and/or liquidity provider in securities issued by Samsung SDI or one of its affiliates. Barclays Bank PLC and/or an affiliate trades regularly in the securities of Samsung SDI. Barclays Bank PLC and/or an affiliate has received non-investment banking related compensation from Samsung SDI within the past 12 months. Samsung SDI is, or during the past 12 months has been, a non-investment banking client (securities related services) of Barclays Bank PLC and/or an affiliate. Valuation Methodology: Our 12-month price target of KRW220,000 for Samsung SDI is set using a P/B-based SOTP valuation, which is equivalent to 16.9x 2012E EPS and 1.6x 2012E BPS. We apply a SOTP valuation to reflect different profitablilty of each division.In valuing SDI's investment assets, we reflect a 15% discount to the listed companies and a 30% discount to the unlisted companies. Risks which May Impede the Achievement of the Barclays Research Price Target: Key risks to our KRW220,000 PT for Samsung SDI are: 1) aggressive capacity expansion at battery competitors that could create pressure on product ASP and 2) continued delay in commercialisation of Ex batteries. General risks to the OLED sector include: 1) worse-than-expected execution of OLED development, especially for TV applications; 2) a lower-than-expected ASP premium over LCD; and 3) the emergence of an alternative technology such as crystal LEDs that could have a competitive edge in initial investment cost and power consumption.

26 May 2012 59 Barclays | The Asia PC Pulse (Issue No. 37)

IMPORTANT DISCLOSURES CONTINUED SFA Engineering (056190 KS / 056190.KS) Stock Rating Sector View KRW 55100.00 (25-May-2012) 1-OVERWEIGHT 1-POSITIVE Rating and Price Target Chart - KRW (as of 25-May-2012) Currency=KRW

80,000 Date Closing Price Rating Price Target 10-Feb-2012 55600.00 1-Overweight 68000.00

70,000

60,000

50,000

40,000

30,000

20,000

10,000

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Barclays Bank PLC and/or an affiliate is a market-maker and/or liquidity provider in securities issued by SFA Engineering or one of its affiliates. Barclays Bank PLC and/or an affiliate trades regularly in the securities of SFA Engineering. Valuation Methodology: Our 12-month price target of KRW68,000 for SFA is based on 14x 2012E P/E, which is its historical 5-year average multiple. The share is trading at 12x our EPS estimate for 2012. The multiple used in valuing SFA may appear aggressive to some investors. However, we believe the share is undervalued compared with those of its peers, given its high exposure to the OLED equipment market, 63% in terms of new orders in 2012E. Risks which May Impede the Achievement of the Barclays Research Price Target: The key downside risks to our price target being achieved, in our view, include the following: 1) an unexpected cutback in OLED capex by SMD; 2) a weaker-than-expected Korea economy that could negatively impact corporate production investment; and 3) slower-than-expected execution in OLED core equipment that could materially hamper investor sentiment. General risks to the OLED sector include the following: 1) worse-than-expected execution of OLED development, especially for TV applications; 2) a lower-than-expected ASP premium over LCD; and 3) the emergence of an alternative technology, such as crystal LEDs, that could have a competitive edge in initial investment cost and power consumption.

26 May 2012 60 Barclays | The Asia PC Pulse (Issue No. 37)

IMPORTANT DISCLOSURES CONTINUED SK Hynix (000660 KS / 000660.KS) Stock Rating Sector View KRW 22000.00 (25-May-2012) 1-OVERWEIGHT 2-NEUTRAL Rating and Price Target Chart - KRW (as of 25-May-2012) Currency=KRW

Date Closing Price Rating Price Target 38,000 03-Feb-2012 26300.00 33000.00 36,000 21-Nov-2011 22900.00 1-Overweight 27000.00 34,000

32,000

30,000

28,000

26,000

24,000

22,000

20,000

18,000

16,000

14,000

12,000

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Barclays Bank PLC and/or an affiliate is a market-maker and/or liquidity provider in securities issued by SK Hynix or one of its affiliates. Barclays Bank PLC and/or an affiliate trades regularly in the securities of SK Hynix. Valuation Methodology: Our 12-month price target of KRW33,000 is based on a P/B multiple of 2.3x, which we apply to our 2012E BVPS. Our target multiple is +1STDV to the stock's historical average multiple of 1.9x since we expect an upcycle for NAND and a bottoming out for DRAM. We believe P/B provides a cyclical context. Risks which May Impede the Achievement of the Barclays Research Price Target: 1) Potential for new owner SK Telecom's lack of experience in running a highly cyclical business. 2) Mistimed execution in DRAM and NAND production. 3) Too aggressive capacity expansion on NAND could drive market share competition.

26 May 2012 61

DISCLAIMER: This publication has been prepared by the Corporate and Investment Banking division of Barclays Bank PLC and/or one or more of its affiliates (collectively and each individually, "Barclays"). It has been issued by one or more Barclays legal entities within its Corporate and Investment Banking division as provided below. It is provided to our clients for information purposes only, and Barclays makes no express or implied warranties, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to any data included in this publication. Barclays will not treat unauthorized recipients of this report as its clients. Prices shown are indicative and Barclays is not offering to buy or sell or soliciting offers to buy or sell any financial instrument. Without limiting any of the foregoing and to the extent permitted by law, in no event shall Barclays, nor any affiliate, nor any of their respective officers, directors, partners, or employees have any liability for (a) any special, punitive, indirect, or consequential damages; or (b) any lost profits, lost revenue, loss of anticipated savings or loss of opportunity or other financial loss, even if notified of the possibility of such damages, arising from any use of this publication or its contents. Other than disclosures relating to Barclays, the information contained in this publication has been obtained from sources that Barclays Research believes to be reliable, but Barclays does not represent or warrant that it is accurate or complete. Barclays is not responsible for, and makes no warranties whatsoever as to, the content of any third-party web site accessed via a hyperlink in this publication and such information is not incorporated by reference. The views in this publication are those of the author(s) and are subject to change, and Barclays has no obligation to update its opinions or the information in this publication. The analyst recommendations in this publication reflect solely and exclusively those of the author(s), and such opinions were prepared independently of any other interests, including those of Barclays and/or its affiliates. This publication does not constitute personal investment advice or take into account the individual financial circumstances or objectives of the clients who receive it. The securities discussed herein may not be suitable for all investors. Barclays recommends that investors independently evaluate each issuer, security or instrument discussed herein and consult any independent advisors they believe necessary. The value of and income from any investment may fluctuate from day to day as a result of changes in relevant economic markets (including changes in market liquidity). The information herein is not intended to predict actual results, which may differ substantially from those reflected. Past performance is not necessarily indicative of future results. This communication is being made available in the UK and Europe primarily to persons who are investment professionals as that term is defined in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion Order) 2005. It is directed at, and therefore should only be relied upon by, persons who have professional experience in matters relating to investments. The investments to which it relates are available only to such persons and will be entered into only with such persons. Barclays Bank PLC is authorised and regulated by the Financial Services Authority ("FSA") and a member of the London Stock Exchange. The Corporate and Investment Banking division of Barclays undertakes U.S. securities business in the name of its wholly owned subsidiary Barclays Capital Inc., a FINRA and SIPC member. Barclays Capital Inc., a U.S. registered broker/dealer, is distributing this material in the United States and, in connection therewith accepts responsibility for its contents. Any U.S. person wishing to effect a transaction in any security discussed herein should do so only by contacting a representative of Barclays Capital Inc. in the U.S. at 745 Seventh Avenue, New York, New York 10019. Non-U.S. persons should contact and execute transactions through a Barclays Bank PLC branch or affiliate in their home jurisdiction unless local regulations permit otherwise. Barclays Bank PLC, Paris Branch (registered in France under Paris RCS number 381 066 281) is regulated by the Autorité des marchés financiers and the Autorité de contrôle prudentiel. Registered office 34/36 Avenue de Friedland 75008 Paris. 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