Daily Letter | 1

5 May 2013

Technology -- Communications Technology -- Wireless Equipment

T. Michael Walkley mwalkley@canaccordgenuity.com Matthew D. Ramsay mramsay@canaccordgenuity.com Siddharth Sinha ssinha@canaccordgenuity.com

612.332.8069 612.332.2208 612.252.0056

Q1/13 HANDSET MARKET SUMMARY & APRIL SURVEY: SAMSUNG POISED FOR STRONG H1/13 SHARE GAINS
Samsung cements smartphone market share lead in Q1/13: Our wireless store surveys
and recent earnings reports from leading global handset/smartphone OEMs indicated a normal seasonally soft Q1/13 for smartphones sales after a very strong December holiday quarter. Our surveys indicated an increasing sales mix of LTE smartphones in developed markets and ramping sales of affordable 3G smartphones replacing feature phones in emerging markets, particularly China. Strong global sales of Samsung's broad smartphone portfolio including very strong flagship Galaxy S III and Galaxy Note II sales resulted in Samsung increasing its smartphone market share from 28.9% in Q4/12 to 33.0% in Q1/13. Our April surveys indicated a very strong initial Samsung Galaxy S4 global launch with Samsung ramping supply of the Galaxy S4 to over 300 carriers in 155 countries the next several weeks. The S4 ramp combined with our expectations for soft June quarter iPhone sales should result in Samsung extending its leading smartphone market share in Q2/13. Apple and Samsung dominate value share, competitors struggle: We estimate Samsung shipped a remarkable 69.7M smartphones during the seasonally softer Q1/13, an increase from 63.5M smartphones during the strong Q4/12 holiday quarter, resulting in Samsung capturing an impressive 43% of handset industry profits. Further, despite seasonally softer iPhone 5 sales and a stronger mix of legacy iPhone 4S/4 sales, we estimate Apple captured 57% of industry profits. In fact, we estimate Apple and Samsung combined to capture a remarkable 100% of Q1/13 handset industry profits as several competitors such as BlackBerry, Nokia, and LG posted break-even results. During the June quarter, we believe softer iPhone sales combined with Samsung Galaxy S4's global ramp should result in Samsung surpassing Apple for the top share of handset industry profits. April surveys: Our U.S. April wireless store surveys indicated strong initial sales of the recently launched Samsung Galaxy S4 and HTC One smartphones in late April. While the iPhone 5 was a top selling smartphone at all four tier-1 carriers, other top selling products included the Galaxy S4 and the HTC One at AT&T/Sprint and the Samsung Galaxy S III and the Galaxy Note II at Verizon/T-Mobile. Our surveys indicated weakening BlackBerry Z10 sales, but our U.K. surveys indicated strong initial Q10 sales but with limited initial supply.

Qualcomm, Avago, RFMD, Skyworks and Peregrine should benefit from LTE smartphone ramp: We believe the Galaxy S4 global ramp should result in strong sales for RFMD.
Further, while weaker June quarter iPhone sales will impact Avago, Skyworks, Peregrine and TriQuint near term, we believe these suppliers are well positioned to benefit from secular trends of increased RFIC content in an increasing mix of LTE smartphones throughout 2013. Based on results from most leading OEMs, March quarter weighted average ASPs were above our expectations, and we believe this is most positive for Qualcomm's QTL revenue due to strong 3G/4G global ASPs and sales trends. Canaccord Genuity is the global capital markets group of Canaccord Financial Inc. (CF : TSX | CF. : LSE) The recommendations and opinions expressed in this research report accurately reflect the Investment Analyst’s personal, inde pendent and objective views about any and all the Designated Investments and Relevant Issuers discussed herein. For important information,

please see the Important Disclosures section in the appendix of this document or visit Canaccord Genuity’s Online Disclosure Database.

Daily Letter | 2
5 May 2013

Q1/13 HANDSET MARKET SUMMARY & APRIL SURVEY; SAMSUNG WELL POSITIONED FOR H1/13 SHARE GAINS
Updated global handset and smartphone unit estimates by OEM; Q1/13 marks first quarter smartphones outsell feature phones
Based on Q1/13 earnings results from leading OEMs, we believe global handset unit sales declined from 480M units in Q4/12 to 420M units in Q1/13, representing a normal seasonal sequential decrease of roughly 13% during the seasonally softer March quarter. We believe this is the first quarter smartphones outsold feature phones. In fact, we estimate smartphone sales decreased 4% sequentially to 211M units, and we estimate feature phone sales declined 20% sequentially to 209M units. With record 3G subscriber growth in China during the March quarter, we believe affordable Android smartphones contributed to the first quarter of smartphones sales exceeding feature phone sales. Our global surveys during the March quarter indicated an increasing mix of LTE smartphones led by strong sales of the iPhone 5, Samsung Galaxy S III, Samsung Galaxy Note II and other LTE smartphones. Overall, we believe Samsung will grow its dominant smartphone market share due to its impressive Galaxy lineup with the Galaxy Y selling into the channel for under $100, the Galaxy S III mini now sub $300, the Galaxy S III now around $400, and the Galaxy S4 likely to dominate high-end smartphone sales for the next two quarters or more. Figure 1 below is our total combined feature phone and smartphone estimates by OEM, and Figure 2 shows our smartphone estimates by OEM. Figure 1: Handset (feature phone and smartphone) unit sales estimates and market share by OEM (millions)
Canaccord Genuity Handset Unit Sales Estimates by OEM (millions) 2011 1Q12 2Q12 3Q12 4Q12 2012 1Q13 2Q13E 3Q13E 4Q13E 2013E 2014E

Global OEMs Nokia Nokia market share Samsung Samsung market share Apple Apple market share Motorola Mobility Motorola Mobility market share Sony (Sony Ericsson) Sony market share LG LG market share BlackBerry BlackBerry market share HTC HTC market share Huawei Huawei market share ZTE ZTE market share Total Other OEMs Market Share
Total Global Handset Units YoY % Change QoQ % Change

417.1 25.9% 341.6 21.2% 93.1 5.8% 41.4 2.6% 34.2 2.1% 88.1 5.5% 52.8 3.3% 44.6 2.8% 55.2 3.4% 80.5 5.0% 364.5 22.6% 1,613 11.9%

82.7 21.2% 97.2 24.9% 35.1 9.0% 8.7 2.2% 7.2 1.8% 13.7 3.5% 11.1 2.8% 6.9 1.8% 10.5 2.7% 20.5 5.2% 97.4 24.9%
391 2.4% -14.0%

83.7 21.0% 100.9 25.3% 26.0 6.5% 7.2 1.8% 7.8 1.9% 13.1 3.3% 7.8 2.0% 9.2 2.3% 10.8 2.7% 18.4 4.6% 113.9 28.6%
399 6.6% 2.0%

82.9 19.5% 108.7 25.6% 26.9 6.3% 6.0 1.4% 8.8 2.1% 14.4 3.4% 7.4 1.7% 7.7 1.8% 12.1 2.8% 21.2 5.0% 128.7 30.3%
425 5.6% 6.5%

86.3 18.0% 115.2 24.0% 47.8 10.0% 5.7 1.2% 8.7 1.8% 15.4 3.2% 6.9 1.4% 6.6 1.4% 18.6 3.9% 25.4 5.3% 143.4 29.9%
479.9 5.6% 13.0%

335.6 19.8% 422.0 24.9% 135.8 8.0% 27.5 1.6% 32.5 1.9% 56.6 3.3% 33.2 2.0% 30.3 1.8% 52.0 3.1% 85.5 5.0% 483.3 28.5% 1,694 5.0%

61.9 14.7% 115.5 27.5% 37.4 8.9% 2.9 0.7% 8.9 2.1% 15.4 3.7% 6.0 1.4% 4.8 1.1% 17.2 4.1% 19.1 4.5% 130.9 31.2%
420 7.4% -12.5%

64.2 14.9% 120.5 28.0% 25.0 5.8% 2.6 0.6% 9.1 2.1% 15.6 3.6% 7.1 1.6% 7.7 1.8% 18.1 4.2% 19.0 4.4% 141.7 32.9%
430 7.9% 2.5%

65.7 14.5% 126.5 28.0% 29.0 6.4% 2.7 0.6% 9.2 2.0% 16.0 3.5% 7.4 1.6% 8.1 1.8% 19.0 4.2% 19.9 4.4% 148.3 32.8%
452 6.4% 5.0%

71.0 14.0% 144.3 28.5% 49.5 9.8% 3.0 0.6% 10.0 2.0% 17.6 3.5% 6.8 1.3% 8.3 1.6% 21.8 4.3% 22.9 4.5% 151.0 29.8%
506 5.5% 12.0%

262.7 14.5% 506.8 28.0% 140.9 7.8% 11.3 0.6% 37.1 2.1% 64.6 3.6% 27.2 1.5% 28.8 1.6% 76.1 4.2% 80.9 4.5% 572.0 31.6% 1,808 6.7%

231.9 12.3% 566.8 30.1% 187.6 9.9% 7.9 0.4% 37.5 2.0% 64.2 3.4% 25.9 1.4% 33.8 1.8% 86.8 4.6% 87.5 4.6% 555.7 29.5% 1,886 4.3%

Source: Company Reports and Canaccord Genuity Estimates

Daily Letter | 3
5 May 2013

Figure 2: Smartphone and feature phone unit sales and market share estimates by OEM (millions)
Canaccord Genuity Smartphone Unit Sales Estimates by OEM (millions) 2011 1Q12 2Q12 Global OEMs Apple 93.1 35.1 26.0 Apple market share 18.8% 22.4% 15.9% 3Q12 4Q12 2012 1Q13 2Q13E 3Q13E 4Q13E 2013E 2014E

26.9 15.3% 56.3 32.1% 6.3 3.6% 7.4 4.2% 7.7 4.4% 4.8 2.7% 8.8 5.0% 7.0 4.0% 8.6 4.9% 6.8 5.0% 34.8 19.9%
175.5 45.6% 7.5%

47.8 21.8% 63.5 28.9% 6.6 3.0% 6.9 3.1% 6.6 3.0% 4.6 2.1% 8.7 4.0% 8.6 3.9% 10.8 4.9% 9.2 4.2% 46.3 21.1%
219.7 36.0% 25.2%

135.8 19.0% 214.7 30.0% 35.0 4.9% 33.2 4.6% 30.3 4.2% 20.1 2.8% 30.1 4.2% 25.8 3.6% 32.2 4.5% 26.6 3.7% 131.1 18.3% 714.8 44.6%

37.4 17.7% 69.7 33.0% 6.1 2.9% 6.0 2.8% 4.8 2.3% 2.5 1.2% 8.9 4.2% 10.3 4.9% 10.3 4.9% 9.0 4.3% 46.1 21.9%
211.0 34.9% -3.9%

25.0 11.4% 81.9 37.3% 7.8 3.6% 7.1 3.2% 7.7 3.5% 2.5 1.1% 9.1 4.1% 10.8 4.9% 10.8 4.9% 9.7 4.4% 47.0 21.5%
219.3 34.3% 3.9%

29.0 11.8% 93.0 37.8% 8.8 3.6% 7.4 3.0% 8.1 3.3% 2.7 1.1% 9.2 3.8% 11.9 4.8% 11.9 4.8% 11.1 4.5% 52.9 21.5%
245.9 40.2% 12.2%

49.5 16.3% 111.5 36.8% 11.2 3.7% 6.8 2.3% 8.3 2.7% 3.0 1.0% 10.0 3.3% 13.7 4.5% 14.2 4.7% 13.9 4.6% 60.9 20.1%
303.0 37.9% 23.2%

140.9 14.4% 356.1 36.4% 33.9 3.5% 27.2 2.8% 28.8 2.9% 10.7 1.1% 37.1 3.8% 46.7 4.8% 47.1 4.8% 43.7 4.5% 206.9 21.1% 979.2 37.0%

187.6 14.6% 511.2 39.7% 51.9 4.0% 25.9 2.0% 33.8 2.6% 7.9 0.6% 37.5 2.9% 55.8 4.3% 61.1 4.7% 59.7 4.6% 256.1 19.9% 1,288.8 31.6%

Samsung Samsung market share Nokia Nokia market share BlackBerry BlackBerry market share HTC HTC market share Motorola Mobility Motorola Mobility market share Sony (Sony Ericsson) Sony market share LG LG market share Huawei Huawei market share ZTE ZTE market share Total Other OEMs Market Share
Total Global Smartphone Units YoY % Change QoQ % Change

95.2 19.3% 77.3 15.6% 52.8 10.7% 44.6 9.0% 18.6 3.8% 21.3 4.3% 20.2 4.1% 20.0 4.1% 14.9 3.0% 36.2 7.3% 494.2 66.6%

44.5 28.4% 11.9 7.6% 11.1 7.1% 6.9 4.4% 5.1 3.3% 5.2 3.3% 4.9 3.1% 5.1 3.3% 5.2 3.3% 21.5 13.7%
156.4 53.6% -3.2%

50.5 30.9% 10.2 6.2% 7.8 4.8% 9.2 5.6% 5.5 3.4% 7.4 4.5% 5.3 3.2% 7.6 4.7% 5.4 3.3% 28.4 17.4%
163.3 47.9% 4.4%

Canaccord Genuity Feature Phone Unit Sales Estimates by OEM (millions) 2011 1Q12 2Q12 3Q12 4Q12 2012 1Q13 2Q13E 3Q13E 4Q13E 2013E 2014E

Global OEMs Nokia Nokia market share Samsung Samsung market share Motorola Mobility Motorola Mobility market share Sony (Sony Ericsson) Sony market share LG LG market share Huawei Huawei market share ZTE ZTE market share Total Other OEMs Market Share
Total Global Feature Phone Units YoY % Change QoQ % Change

339.8 30.4% 246.4 22.0% 22.8 2.0% 12.9 1.1% 67.9 6.1% 35.2 3.1% 65.6 5.9% 328.3 29.3% 1,118.8 -2.3%

70.8 30.2% 52.8 22.5% 3.6 1.5% 2.0 0.9% 8.8 3.8% 5.4 2.3% 15.3 6.5% 75.9 32.4%
234.6 -16.3% -20.0%

73.5 31.2% 50.4 21.4% 1.7 0.7% 0.4 0.2% 7.8 3.3% 3.2 1.4% 13.1 5.6% 85.4 36.3%
235.5 -10.7% 0.4%

76.6 30.7% 52.4 21.0% 1.2 0.5% 0.0 0.0% 7.4 3.0% 3.5 1.4% 14.4 5.8% 93.8 37.6%
249.2 -11.6% 5.8%

79.7 30.6% 51.7 19.9% 1.0 0.4% 0.0 0.0% 6.8 2.6% 7.8 3.0% 16.2 6.2% 97.0 37.3%
260.3 -11.2% 4.4%

300.6 30.7% 207.4 21.2% 7.4 0.8% 2.4 0.2% 30.8 3.1% 19.9 2.0% 58.9 6.0% 352.2 36.0% 979.5 -12.4%

55.8 26.7% 45.8 21.9% 0.4 0.2% 0.0 0.0% 5.1 2.4% 6.9 3.3% 10.1 4.8% 84.8 40.6%
208.9 -10.9% -19.7%

56.4 26.7% 38.6 18.3% 0.1 0.1% 0.0 0.0% 4.7 2.2% 7.3 3.5% 9.3 4.4% 94.7 44.8%
211.1 -10.3% 1.1%

56.9 27.6% 33.6 16.3% 0.0 0.0% 0.0 0.0% 4.1 2.0% 7.1 3.5% 8.8 4.3% 95.4 46.3%
206.0 -17.3% -2.4%

59.8 29.4% 32.7 16.1% 0.0 0.0% 0.0 0.0% 3.9 1.9% 7.6 3.7% 9.0 4.4% 90.2 44.4%
203.2 -21.9% -1.4%

228.8 27.6% 150.7 18.2% 0.6 0.1% 0.0 0.0% 17.9 2.2% 28.9 3.5% 37.3 4.5% 365.1 44.0% 829.3 -15.3%

179.9 30.1% 55.6 9.3% 0.0 0.0% 0.0 0.0% 8.4 1.4% 25.6 4.3% 27.8 4.7% 299.6 50.2% 596.9 -28.0%

Source: Company Reports and Canaccord Genuity Estimates

Daily Letter | 4
5 May 2013

Samsung gains smartphone market share during Q1/13; anticipate further share gains in Q2/13 with the Galaxy S4 ramp and broad smartphone portfolio
Given Samsung's strong global brand, broad portfolio of smartphones across a wide price range, and very strong flagship Galaxy S III and Galaxy Note II smartphone sales, we believe Samsung grew its overall leading unit market share and leading smartphone market share position during Q1/13. In fact, we estimate Samsung increased its position as the top selling handset OEM with 27.5% of the global handset unit market share in Q1/13 from 24.0% in Q4/12. Further, we believe Samsung was the top selling smartphone OEM and grew its smartphone unit market share to 33.0% in Q1/13 from 28.9% in Q4/12. In fact, we estimate Samsung shipped an incredible 69.7M smartphones in the seasonally softer March quarter, an increase from strong December holiday quarter sales of 63.5M smartphones. Due to our expectations for softer Q2/13 iPhone sales during Apple's transitional June quarter combined the strong ramp of the Galaxy S4 to over 300 carriers in 155 countries, we believe Samsung will grow its overall global handset and smartphone share during Q2/13. After a very strong December quarter for iPhone sales post the iPhone 5 launch, we estimate Apple's global unit market share declined during Q1/13 to 8.9% versus 10.0% in Q4/12, and we estimate Apple's global smartphone unit market share declined to 17.7% versus 21.8% in Q4/12. Given our expectations for a transitional June quarter for iPhone sales before a potential iPhone 5S refresh later in the September quarter, we believe Apple could lose material global handset and smartphone market share to Samsung and other Android OEMs during Q2/13 and Q3/13.

Android share gains in Q1/13 due to strong Samsung and local Chinese OEM sales; expect further Android share gains in Q2/13
Due to strong sales of Samsung's high-volume Android smartphones and ramping affordable Android smartphone sales from local Chinese OEMs in emerging markets, we estimate Android increased its overall market share during Q1/13 to 70.5% versus 66.9% in Q4/12. Given our expectations for softer iPhone sales in the June quarter and given the strong global ramp of leading flagship Android smartphones from Samsung, HTC, LG and other Android OEMs as well as ramping affordable 3G Android smartphones from local Chinese OEMs, we anticipate Android will increase its dominant market share during Q2/13 to roughly 75% of total smartphone sales. After a strong December quarter of share gains for iOS due to the iPhone 5 ramp, we estimate iOS' overall smartphone market share declined during Q1/13 to 17.7% versus 21.8% in Q4/12. Given our June quarter iPhone estimates of 25M units, we believe iOS will lose further smartphone market share to Android and other competing mobile OS platforms during Q2/13. With BlackBerry shipping the BB10 OS based Z10 and introducing the Q10 with a physical QWERTY keyboard, we estimate modest BlackBerry smartphone share gains during the June quarter given initial sales into the channel combined with pent-up demand by loyal BlackBerry customers. However, we believe the carrier pricing for the new Q10 smartphone versus competing high-end smartphones creates a tough environment for BB10 sales to turnaround BlackBerry's long-term business trends. Further given BlackBerry's small smartphone market share and declining subscriber base, we struggle to envision how BlackBerry can sustain a completely different mobile ecosystem with limited carrier support, developer interest, or applications base. As such, we believe BlackBerry

Daily Letter | 5
5 May 2013 will struggle to create a long-term competitive ecosystem with the new BB10 OS and estimate its smartphone market share could decline below 3% exiting 2013. Finally, our smartphone OS market share estimates indicate modest share gains for the Windows Phone 8 mobile OS due to the ramp of affordable Nokia Lumia smartphones, particularly the Lumia 620 in China, SE Asia and Europe. In fact, we estimate Windows Phone 8 gained only modest smartphone share during Q1/13 to 4.7% versus 3.7% during Q4/12. During Q2/13, we estimate modest share gains for Windows Phone 8 given our expectations for continuing iOS share losses combined with Nokia ramping its affordable Lumia 520 and 720 smartphones into mid- and low-tier international markets. In fact, Nokia guided Lumia unit volumes should increase sequentially during the June quarter by a greater percentage than the 27% sequential increase in the March quarter. However, with Windows capturing less than 5% of the smartphone market in 2012, we believe Microsoft and its hardware partners face another year of heavy investment in an attempt to drive Windows smartphones to become a viable third ecosystem. Figure 3: Smartphone operating system unit market share estimates
Canaccord Genuity Smartphone OS Estimates (millions) 2011 1Q12 2Q12 3Q12 4Q12 2012 1Q13 2Q13E 3Q13E 4Q13E 2013E 2014E

Android Android market share Apple (iOS) iOS market share Microsoft Windows Mobile Phone Microsoft market share BlackBerry (BB and QNX) BlackBerry market share Symbian Symbian market share Total Other OSs Market share
Total Global Smartphone Units YoY % Change QoQ % Change

252.8 51.2% 93.1 18.8% 9.7 2.0% 52.8 10.7% 76.2 15.4% 9.6 1.9%
494.2 66.6%

90.7 58.0% 35.1 22.4% 5.3 3.4% 11.1 7.1% 9.8 6.3% 4.4 2.8%
156.4 53.6% -3.2%

110.7 67.8% 26.0 15.9% 6.9 4.2% 7.8 4.8% 6.2 3.8% 5.6 3.5%
163.3 47.9% 4.4%

125.4 71.4% 26.9 15.3% 6.0 3.4% 7.4 4.2% 3.4 1.9% 6.4 3.6%
175.5 45.6% 7.5%

147.0 66.9% 47.8 21.8% 8.2 3.7% 6.9 3.1% 2.2 1.0% 7.6 3.5%
219.7 36.0% 25.2%

473.7 66.3% 135.8 19.0% 26.5 3.7% 33.2 4.6% 21.6 3.0% 24.1 3.4%
714.8 44.6%

148.7 70.5% 37.4 17.7% 10.0 4.7% 6.0 2.8% 0.5 0.2% 8.4 4.0%
211.0 34.9% -3.9%

165.0 75.2% 25.0 11.4% 12.2 5.6% 7.1 3.2% 0.3 0.1% 9.8 4.5%
219.3 34.3% 3.9%

183.8 74.7% 29.0 11.8% 16.1 6.5% 7.4 3.0% 0.1 0.0% 9.6 3.9%
245.9 40.2% 12.2%

214.4 70.8% 49.5 16.3% 18.8 6.2% 6.8 2.3% 0.1 0.0% 13.4 4.4%
303.0 37.9% 23.2%

711.9 72.7% 140.9 14.4% 57.0 5.8% 27.2 2.8% 1.0 0.1% 41.1 4.2%
979.2 37.0%

907.6 70.4% 187.6 14.6% 106.2 8.2% 25.9 2.0% 0.0 0.0% 61.3 4.8%
1,288.8 31.6%

Source: Company reports and Canaccord Genuity estimates

Going forward, we anticipate share shifts in Q2/13 with iOS losing smartphone share to Android as well as incremental market share gains for Windows Phone 8 and BB10 from current small levels. Therefore, we estimate iOS smartphone market share will decrease to an estimated 11.4% in Q2/13 versus 17.7% in Q1/13 with Android's smartphone market share increasing from 70.5% in Q1/13 to 75.2% in Q2/13.

Apple (57%) and Samsung (43%) combine to capture 100% of handset industry profits (“value share”); Samsung poised for Q2/13 value share gains
In Figure 4 on page 6 we calculate the quarterly share of handset industry sales and profits by OEM by quarter. Apple and Samsung continue to dominate the share of industry profits. In fact, due to operating losses from smaller scale competitors trying to compete, Apple and Samsung's combined share of industry profits have exceeded 100% in previous quarters. While Apple and Samsung continue to dominate the share of industry profits, improving cost structures and results from other OEMs have reduced Apple and Samsung's combined share to 100% from levels above 100% the past several quarters.

Daily Letter | 6
5 May 2013

Figure 4: Quarterly share of industry sales and profits for leading OEMs
Mobile Device Sales Market Share by leading OEMs
Quarterly Mobile Device Sales by OEM ($USD) Apple iPhone Sales Apple sales market share Nokia Mobile Device Sales Nokia sales market share Samsung Mobile Device Sales Samsung sales market share BlackBerry Mobile Device Sales BlackBerry sales market share Motorola Mobile Device Sales Motorola sales market share Sony (Sony Ericsson) Mobile Device Sales Sony sales market share LG Mobile Device Sales LG sales market share HTC Mobile Device Sales HTC sales market share Total Mobile Device Sales for Leading OEMs 2011 61,006 31% 33,204 17% 47,638 24% 15,007 8% 8,986 5% 7,363 4% 10,259 5% 15,758 8% 199,221 Q112 22,690 41% 5,587 10% 16,490 30% 2,858 5% 2,194 4% 1,207 2% 2,139 4% 2,297 4% 55,462 Q212 16,245 33% 5,092 10% 17,940 36% 1,609 3% 1,967 4% 2,108 4% 1,999 4% 3,018 6% 49,978 Q312 17,125 31% 4,664 8% 23,490 42% 1,691 3% 1,778 3% 2,321 4% 2,168 4% 2,498 4% 55,735 Q412 30,660 43% 5,071 7% 25,183 36% 1,572 2% 1,514 2% 1,868 3% 2,570 4% 2,058 3% 70,497 2012 86,720 37% 20,414 9% 83,104 36% 7,730 3% 7,453 3% 7,504 3% 8,876 4% 9,871 4% 231,672 Q113 22,955 36% 3,751 6% 27,317 43% 1,540 2% 1,018 2% 1,943 3% 2,960 5% 1,473 2% 62,957

Operating Profit Value Share by OEM by Quarter
Quarterly Operating Income by OEM ($USD) Apple operating income Apple mobile device operating margin Apple value share Nokia operating income Nokia mobile device operating margin Nokia value share Samsung operating income Samsung mobile device operating margin Samsung value share BlackBerry operating income BlackBerry mobile device operating margin BlackBerry value share Motorola operating income (loss) Motorola mobile device operating margin Motorola value share Sony (Sony Ericsson) operating income (loss) Sony mobile device operating margin Sony value share LG operating income (loss) LG mobile device operating margin LG value share HTC operating income HTC mobile device operating margin HTC value share Total Operating Income for leading OEMs 2011 26,723 44% 65% 2,347 7% 6% 7,078 15% 17% 2996 20% 7% -126 -1% 0% -287 -4% -1% -254 -2% -1% 2329 15% 6% 40,808 Q112 10,437 46% 74% -167 -3% -1% 3,725 23% 26% 480 17% 3% -85 -4% -1% -391 -32% -3% 27 1% 0% 173 8% 1% 14,200 Q212 6,985 43% 71% -462 -9% -5% 3,663 20% 37% -308 -19% -3% -168 -9% -2% -104 -5% -1% -26 -1% 0% 272 9% 3% 9,852 Q312 6,216 36% 59% -344 -7% -3% 5,038 21% 48% -227 -13% -2% -199 -11% -2% -70 -3% -1% -4 0% 0% 175 7% 2% 10,585 Q412 12,264 40% 72% 68 1% 0% 5,031 20% 29% -175 -11% -1% -152 -10% -1% -37 -2% 0% 52 2% 0% 20 1% 0% 17,071 2012 35,903 41% 69% -905 -4% -2% 17,458 21% 34% -230 -3% 0% -604 -8% -1% -602 -8% -1% 48 1% 0% 640 6% 1% 51,708 Q113 8,034 35% 57% 5 0% 0% 6,019 22% 43% 17 1% 0% -179 -18% -1% 19 1% 0% 123 4% 1% 1 0% 0% 14,040

Source: Company reports and Canaccord Genuity estimates

With Samsung growing its overall market share in both smartphones and overall mobile phones during Q1/13, we estimate Samsung captured an impressive 43% of handset industry profits versus 34% in Q4/12. Further, despite seasonally softer iPhone 5 sales and

Daily Letter | 7
5 May 2013 a stronger mix of legacy iPhone 4S/4 sales, we estimate Apple still captured 57% of industry profits, but Apple's share of industry profits declined from 72% in Q4/12. However, we believe Apple's value share of the handset market is even higher than our estimates in Figure 4 considering Apple's dominant market share of the tablet market, as some Android OEMs such as Samsung and HTC include tablet sales in reported smartphone sales and profits. We estimate Apple and Samsung combined to capture a remarkable 100% of Q1/13 handset industry profits as several competitors such as BlackBerry, Nokia, and LG posted break-even results to slight profits offsetting ongoing losses from Motorola. During the June quarter, we believe softer iPhone sales combined strong Samsung Galaxy S4 sales could result in Samsung surpassing Apple for the top share of handset industry profits. Given the current competitive dynamics, we believe Apple and Samsung will maintain dominant value share during Q2/13 and likely throughout 2013 and 2014.

APRIL SURVEY: SAMSUNG GALAXY S4 AND HTC ONE LAUNCH WITH STRONG INITIAL SALES; GALAXY S4 LIKELY THE TOPSELLING SMARTPHONE DURING Q2/13 AND Q3/13
Our U.S. April wireless store surveys indicated strong initial sales of the flagship Samsung Galaxy S4 and HTC One smartphones at the end of April. Given these smartphones launched in the later half of April, we believe the iPhone 5 remained the top-selling smartphone in the U.S. market during the entire month of April. In Figure 5 on page 8, we provide a summary of our surveys for the leading smartphone sales by OEM at each of the top four carriers in North America over the past four months. While the iPhone 5 was a top selling smartphone at all four tier-1 carriers, other top selling smartphones included the Samsung Galaxy S4 and the HTC One at AT&T/Sprint and the Samsung Galaxy S III and the Galaxy Note II at Verizon/T-Mobile. Our surveys indicated disappointing sales trends for the BlackBerry Z10 with sales levels down sharply from the first week of launch. We estimate roughly 20,000 to 30,000 Z10's are selling per week combined at AT&T, Verizon, and T-Mobile in the U.S. market. Our surveys indicated limited consumer interest, modest carrier support, and limited store representative support for the Z10. Further, given the very strong initial sales, consumer interest, and Samsung's marketing budget for the Samsung Galaxy S4, we anticipate the Galaxy S4 could emerge as the top selling smartphone during the June quarter and contribute to ongoing soft Z10 sales. In fact, Samsung recently highlighted potentially limited initial supply for the Galaxy S4 given the overwhelming global demand. Our recent survey work indicated supply has already improved and large volumes are ramping into the global channel.

Daily Letter | 8
5 May 2013 Figure 5: Month-over-month comparison of top selling handset models – past 4 months
Top 3 Smartphones January/13
Apple iPhone 5 ($200/$300/$400)

February/13
Apple iPhone 5 ($200/$300/$400) Samsung Galaxy S III ($200) Nokia Lumia 920 ($100) Apple iPhone 5 ($200/$300/$400) Samsung Galaxy S III ($200) Samsung Galaxy Note II ($300) Apple iPhone 5 ($200/$300/$400) Samsung Galaxy S III ($100/$150) Samsung Galaxy Note II ($300) Samsung Galaxy S III ($280) Samsung Galaxy Note II ($370) Google Nexus 4 ($200)

March/13
Apple iPhone 5 ($200/$300/$400) Samsung Galaxy S III ($200) Samsung Galaxy Note II ($300) Apple iPhone 5 ($200/$300/$400) Samsung Galaxy S III ($200) Samsung Galaxy Note II ($300) Apple iPhone 5 ($200/$300/$400) Samsung Galaxy S III ($100/$150) Samsung Galaxy Note II ($300) Samsung Galaxy S III ($550) Samsung Galaxy Note II ($680) Google Nexus 4 ($458)

April/13
Apple iPhone 5 ($200/$300/$400) Samsung Galaxy S4 ($200) HTC One ($200/$300) Apple iPhone 5 ($200/$300/$400) Samsung Galaxy S III ($100) Samsung Galaxy Note II ($300) Apple iPhone 5 ($200/$300/$400) Samsung Galaxy S4 ($250) HTC One ($200) Apple iPhone 5 ($580/$680/$780) Samsung Galaxy S III ($550) Samsung Galaxy Note II ($680)

AT&T

Samsung Galaxy S III ($200) Nokia Lumia 920 ($100) Apple iPhone 5 ($200/$300/$400)

Verizon

Samsung Galaxy S III ($200/$250) Samsung Galaxy Note II ($300) Apple iPhone 5 ($200/$300/$400)

Sprint

Samsung Galaxy S III ($200/$250) Samsung Galaxy Note II ($300) Samsung Galaxy S III ($280)

T-Mobile

Samsung Galaxy Note II ($370) HTC Windows 8X ($200)

Top vendors

Apple Samsung Nokia HTC

Apple Samsung Nokia Google

Apple Samsung Google

Apple Samsung HTC

Smartphone ASP

$100 - $400

$100 - $400

$100 - $680

$100 - $680

Source: Canaccord Genuity monthly wireless store surveys

Growing global smartphone sales in April with secular trends of smartphone growth in emerging 3G markets and prepaid channels
Our global surveys indicated increasing overall smartphone sales in April after strong sales of affordable smartphones during the March quarter, especially in China. Further, our monthly surveys indicated a continuing secular trend of smartphone share gains versus feature phones with growing sales of low-end and mid-tier 3G Android smartphones from Chinese OEMs such as Coolpad, Lenovo, Xiaomi, BBK and other local Chinese brands as well as for Samsung's broad portfolio of affordable smartphones targeting emerging markets. In fact, the three leading Chinese carriers reported successive record combined 3G subscriber net additions for the months of January, February and March. In addition, Qualcomm, on its recent Q2/F2013 earnings call on April 23, highlighted the success of its Qualcomm Reference Design (QRD) program with over 200 devices based on QRD program launched to date. Further, with both MediaTek and Qualcomm adding quadcore chipset support to their respective turnkey programs, we expect a growing trend of affordable high-end Android smartphones from these local Chinese OEMs. Qualcomm highlighted Chinese OEM customers are now shipping smartphones based on its quad-core Snapdragon 8X25Q QRD solution, as well as having a developing pipeline of LTE chipsets for its reference design program to support the anticipated roll out of LTE in China. Our global surveys also indicated strong TD-SCDMA smartphone sales as evidenced by record TD-SCDMA China Mobile subscriber net additions during the December and March quarters. We believe the strong TD-SCDMA smartphone sales during the March quarter should benefit HOLD-rated Spreadtrum (SPRD : NASDAQ : $20.61 | HOLD), as stronger TDSCDMA sell-through trends during the March quarter could help offset typical seasonally

Daily Letter | 9
5 May 2013 slower 1H TD-SCDMA sales trends. Further, based on the host of affordable Android and Windows smartphones announced during the March quarter, we anticipate ramping smartphone sales in emerging markets during 2013.

Anticipate seasonally stronger Q2/13 smartphone sales versus Q1/13
After a normal seasonally soft March quarter for smartphone sales, we anticipate stronger smartphone sales during the June quarter. With Samsung ramping its flagship Galaxy S4 globally along with host of new smartphones from Samsung, HTC, LG, Nokia, BlackBerry and others launching during the June quarter, partially offset by soft iPhone sales during Apple's transitional June quarter, we anticipate a normal seasonally stronger June quarter for smartphone sales. With most high- and mid-tier smartphones in Western markets supporting LTE, we expect a continuing trend of increasing mix of LTE enabled smartphones in developed markets as well as strong sales of affordable 3G and EDGE based-Android smartphones replacing feature phones in emerging markets. Channel check data: In the following sections, we recap Q1/13 earnings results for handset/smartphone OEMs, discuss our detailed wireless store survey data by OEM, and discuss quarterly market share estimates, value share estimates, and operating margin metrics for industry leading OEMs

APPLE (AAPL : NASDAQ : $449.98 | BUY)
Surveys indicate steady iPhone sales but increasing high-tier smartphone competition; anticipate soft Q2/C2013 due to transitional iPhone quarter
Our April U.S. wireless store surveys indicated the iPhone 5 remained the top selling smartphone at all four tier-1 carriers. While the iPhone maintained its leading market share, our surveys did indicate some initial share losses for the iPhone 5 in late April at AT&T and Sprint post the strong initial sales of the Samsung Galaxy S4, and to a lesser extent the HTC One. Overall, we estimate iPhone 5 sales during April were slightly lower than March levels. Our surveys also indicated steady global sales of legacy iPhone 4/4S models at reduced prices.

In-line March quarter iPhone sales, but soft June quarter guidance
Consistent with our March quarter global surveys indicating seasonally softer iPhone 5 sales combined with a stronger mix of legacy iPhone 4S/4 sales, Apple reported iPhone unit sales of 37.4M which was in line with our 37.0M expectation. iPhone's share of smartphones sold at AT&T decreased from 84% in the December quarter to 80% in the March quarter, and iPhone's smartphone share at Verizon decreased from 63% of total smartphone sales in the December quarter to 56% in the March quarter. Consistent with our surveys over the March quarter indicating a stronger mix of lower-priced legacy iPhone 4/4S combined with certain price cuts across the iPhone portfolio later in the March quarter, we calculate iPhone ASPs of $619 (excluding accessories and including deferred revenue) in the March quarter, down from $651 in the December quarter. Based on Apple's weak guidance for the transitional June quarter implying softer iPhone sales and an increased mix of lower-ASP iPhone 4/4S models, we estimate 25M iPhone unit sales during the June quarter, down a steep 33% from March quarter levels and down 48% from peak 2012 December quarter levels. Based on our expectations for a refreshed iPhone near the end of the September quarter, we anticipate a gradual ramp in iPhone sales through Q4/F13 and estimate iPhone unit sales of 29M in the September quarter. We

Daily Letter | 10
5 May 2013 believe Apple could launch a refreshed iPhone 5 in the September quarter along with a more mid-tier-priced competitive iPhone for pre-paid-oriented international markets in early F2014 or ahead of the Chinese New Year holidays.

Apple remains compelling long-term investment, and soft Q3/F2013 guidance represents a buying opportunity
We believe Apple's industry-leading software and its leading hardware expertise will lead to a strong multi-year product cycle for its key products. Based on the after-market price of $450.00 per share, Apple is trading at approximately 6x our F2014 estimate after backing out the $153 in cash per share. Given Apple's aggressive $100B cash return program and with Apple announcing a $17B bond offering to facilitate this program combined with Apple's compelling valuation, strong brand, iOS ecosystem, and installed base it can leverage for new product launches in 2H/C2013, we believe the current share price represents a compelling entry point. Please see our April 23 earnings report titled “$100B cash return to investors helps offset weak June quarter guidance ” for further details on our Apple thesis. We reiterate our BUY rating our $560 price target.

QUALCOMM (QCOM : NASDAQ : $63.77 | BUY)
Well positioned with smartphone OEMs for strong F2013 results driven by an increasing LTE smartphone mix and 3G smartphone growth in emerging markets
Our April surveys indicated a continued increasing mix of LTE smartphones. We believe Qualcomm is well positioned to gain meaningful LTE baseband and apps processor chipset content share in Samsung's recently announced flagship Galaxy S4 smartphone versus its predecessor, the Galaxy S III, due to a much higher mix of LTE-enabled Galaxy S4 SKUs. In addition, we believe Qualcomm is similarly well positioned for June quarter smartphone volume ramps at other leading OEMs including HTC, Sony Mobile, BlackBerry, Nokia and other OEMs that have LTE product portfolios using Qualcomm's industry leading LTE multimode baseband chipsets.

Snapdragon 600 applications processor ramping in volume, but has initia l low gross margin; core MSM margins and market share remain strong
We believe Qualcomm is shipping the MDM 9X15 LTE modem into the Galaxy S4 along with the Snapdragon 600. Since the Snapdragon 600 or APQ8064T is an applications processor-only chipset, sales of this solution are not counted as an MSM. MSMs or Mobile Station Modems represent chipsets with a wireless modem. When Qualcomm reports MSM units, we believe only the MDM 9X15 is counted as an MSM shipping into the Galaxy S4 and not the Snapdragon 600 applications processer. Therefore, the ramping sales of the Snapdragon 600 into the high volume Galaxy S4 contributed to the higher calculated MSM ASPs during the March quarter and are consistent with Qualcomm's guidance for a sequential improvement in MSM ASPs during the June quarter. We anticipate an 8% sequential increase in MSM ASPs during the June quarter. However, we believe the Snapdragon 600 initially has a very poor gross margin versus Qualcomm's overall QCT product portfolio, and the ramping volume of the Snapdragon 600 is contributing to the weaker QCT gross margin outlook despite the increased MSM ASP guidance. We believe Qualcomm was willing to accept a lower gross margin for the Snapdragon 600 in order to win content share in the high volume Galaxy S4 to drive incremental operating income while sacrificing operating and gross margins. We also believe the scale benefits from shipping the Snapdragon 600 in the high volume Galaxy S4

Daily Letter | 11
5 May 2013 that could ship up to 100M units should enable Qualcomm to achieve stronger margins on future application processor only sales to new customers and to new end markets such as applications processor only tablets. Overall, we believe Qualcomm is well positioned to extend its leading 3G and 4G chipset market share during F2013. We also believe an increasing mix of LTE smartphones combined with strong 3G growth in emerging markets should result in stable CDMA device ASPs and solid growth for QTL during F2013. See our Qualcomm note today titled “Leading OEM ASP analysis indicates improving QTL ASP trends in H2/F13” for more details on global 3G/4G device ASP rends. Longer term, we also believe Qualcomm is well positioned to post strong earnings growth due to stable royalty rates, strong market share gains for integrated chipsets, and continued strong growth of 3G smartphones in emerging markets to drive an increasing TAM for QCT and QTL. We reiterate our BUY rating and $85 price target, and Qualcomm remains our top large-cap pick for C2013

NOKIA (NOK : NYSE : $3.30 | HOLD)
April store surveys indicate weaker Lumia U.S. sales versus March levels with overall U.S. Windows Phone 8 smartphone sales weaker vs. iOS and Android
Our April wireless store surveys indicated weakening sales of Lumia smartphones at AT&T/Verizon/T-Mobile. Further, our surveys indicated the HTC 8X continued to outsell the Lumia 820/22 at Verizon with overall Windows Phone sales trailing iPhone and Samsung Galaxy S III sales at Verizon and T-Mobile by increasing margins. However, our international surveys indicate growing sales of affordable Lumia smartphones such as the Lumia 620 in mid- and low-tier international smartphone markets. We also anticipate a strong ramp into the channel for the affordable Lumia 520 and 720 smartphones during the June quarter.

Weak Mobile Phone division sales result in break-even Q1/13 D&S operating margin despite 27% sequential increase in Lumia sales volumes
Consistent with our belief Nokia had lost feature phone market share during the March quarter due to increased competition from Chinese OEMs and from Samsung's new REX products, Nokia reported Q1/13 Mobile Phones unit sales of 55.8M that were below our 59.7M estimate and well below the consensus estimate of 64.9M. Further, sales of Nokia's profitable higher-end Asha smartphone series declined 46% sequentially from 9.3M to 5.0M units resulting in Mobile Phones ASPs declining to €28.5 from €31.0 in the December quarter. With Nokia management indicating the Mobile Phone division still had channel inventory exiting Q1/13 at levels slightly above target levels and given our expectation for intensifying competition, we anticipate only a modest 1% sequential increase in June quarter Mobile Phone shipments to 56.4M units, or below normal seasonality. While we were impressed with Nokia's recently introduced QWERTY Asha 210 handset, we believe it will take a concerted effort on Nokia's part to quickly introduce new feature phones and Asha products to reverse the currently tough competitive trends and maintain sustained profitability. Nokia's Smart Devices business reported Lumia sales of 5.6M units, above our 5.3M estimate, and Nokia guided Lumia unit volumes should increase sequentially during the June quarter by a greater percentage than the 27% sequential increase in the March quarter. The solid Lumia sales guidance is consistent with our April surveys that indicate gradually improving consumer traction for Lumia smartphones, particularly in mid- and low-tier international smartphone markets with strong sales of the Lumia 620. We also

Daily Letter | 12
5 May 2013 anticipate a strong ramp into the channel for the affordable Lumia 520 and 720 smartphones during the June quarter. However, we anticipate weaker higher-end Lumia sales during the June quarter due to intensifying Western market competition with the launch of the Samsung Galaxy S4. Long term, we believe Windows must capture 15% or more of the smartphone market with Nokia capturing nearly half of the Windows market share in order for Devices and Services to return to sustained profitability with its current cost structure. With Windows capturing less than 5% of the smartphone market in 2012, Nokia and Microsoft face another year of heavy investment in an attempt to drive Windows smartphones to become a viable third ecosystem. Please see our April 18 earnings report titled “Solid cost execution and strong NSN results offset weak mobile phone sales” for further details on our Nokia thesis. We maintain our HOLD rating and our $3.50 price target.

BLACKBERRY (BBRY : NASDAQ : $15.63 | SELL)
U.S. surveys indicate soft Z10 smartphone sales; U.K. surveys indicate solid initial Q10 demand but limited supply
Our U.S. wireless store surveys indicated BlackBerry Z10 sell through trends remained soft during April despite Blackberry increasing advertising spending levels. In fact, we estimate Z10 weekly sales combined for Verizon, AT&T, and T-Mobile are roughly half the rate of the launch week at each of these carriers, as we estimate weekly combined Z10 sales for these three leading U.S. carriers at roughly 20,000 to 30,000 units. Our surveys indicated limited consumer interest, modest carrier support, and limited store representative sales support for the Z10. Several carrier sales representatives positioned the Z10 as a mid-tier smartphone versus the high-end Samsung Galaxy S4 or the iPhone 5. Our global surveys indicate mixed BlackBerry sell through trends with weakening sales of the Z10 over the past month but strong initial demand for the limited supply Q10. Our U.K surveys post the recent Q10 launch indicated strong initial sales. However, we believe the Q10 may have initial production issues or intentionally limited supply at the launch to drive consumer excitement for the devices. Our surveys indicated most U.K carrier stores received less than 15 units for the initial day of the launch with many stores selling out of the devices or the majority of the initial allocation during the first few days of availability. Further, our initial surveys in Canada indicated very limited initial supply of the Q10 into the recent launch.

Anticipate stronger near term results but long-term thesis unchanged
With new BB10 smartphones facing increased high-end competition from the Samsung Galaxy S4 and the HTC One, we anticipate Z10 sales could further weaken in the consumer retail channels. However, we anticipate a strong ramp in Q10 sales over the next several months should more than offset the slowing Z10 sales. While we anticipate stronger nearterm results from BlackBerry as higher margin BB10 smartphones sell into the channel, we do not believe BlackBerry can achieve sell-through market share levels to return to sustained profit levels and we maintain our bearish view for longer-term BB10 sales trends. Please see our separate BlackBerry note published today titled “Slowing Z10 sales trends, solid initial Q10 demand but supply limited” for further details on our BlackBerry thesis. We maintain our SELL rating and $9 price target.

Daily Letter | 13
5 May 2013

HTC (2498 : TWSE : NT$279.50 | HOLD)
Solid initial HTC One sales post launch, but Samsung Galaxy S4 likely to limit HTC One sales trends
Our U.S. April wireless store surveys indicated strong initial consumer interest and very positive sales representative reviews for the recently launched flagship HTC One smartphone at AT&T and Sprint. While we believe the HTC One is a very compelling smartphone, we believe the delayed HTC One faces a very competitive high-end global smartphone market dominated by the Samsung Galaxy S4. While the HTC One was the #3 top selling smartphone at both AT&T and Sprint, the Galaxy S4 also launched at the same two carriers and was more popular. We believe Samsung's massive global scale, marketing muscle, and strong volume ramp of the Samsung Galaxy S4 could limit HTC One sales. Consistent with our surveys, we estimate HTC's smartphone sales decreased 31% y/y to 4.8M units during the March quarter due to the delayed HTC One smartphone launch and ongoing intense smartphone competition impacting sales. In fact, we estimate HTC's global smartphone unit market share declined to 2.8% in Q1/13 from 3.0% in Q4/12. HTC guided to a strong sequential Q2/13 increase in sales to NT$70B due to the HTC One finally selling in volume to the market after initial production issues. However, HTC is also sharply increasing marketing expenses to support the launch, and overall Q2/13 gross and operating margin guidance was below our expectations. While we believe the HTC One is a compelling high-end smartphone, we maintain our HOLD rating due to increasing competition from the Samsung S4 launch and growing low-end Android competition. Please see our May 2 report titled “Q1/13 in-line with pre-announcement; HTC One ramp drives strong Q2/13 guide” for more details on our HTC thesis. We maintain our HOLD rating and NT$240 price target.

GOOGLE/MOTOROLA
Surveys indicate soft RAZR MAXX HD sales at Verizon and overall declining Motorola smartphone sales
Our April wireless store surveys indicated weaker Droid RAZR MAXX HD sales at Verizon versus March quarter levels. With the Droid RAZR MAXX HD no longer a top selling smartphone at Verizon, we believe sales of this smartphone have progressively declined from peak levels in October. Our surveys also indicated soft sales for the Motorola Atrix HD at AT&T and the Motorola RAZR M at Verizon, with sales of these devices adversely impacted by recently launched flagship Android smartphones.

Motorola’s Android share and value share declines
We estimate Motorola Mobility sold 2.5M smartphones during Q1/13. We believe total Motorola smartphone sales decreased sequentially during the March quarter due to softer sales of the ageing RAZR MAXX HD at Verizon, and we estimate Motorola Mobility's global smartphone unit market share declined in to 1.2% in Q1/13 from 2.1% in Q4/12. From Google's March quarter results, we estimate Motorola Mobility had mobile device sales of $1.02B and an operating margin of roughly -18% with sales lower and losses higher sequentially. Therefore, we estimate Motorola Mobility's value share of handset industry profits was -1% in Q1/13.

Daily Letter | 14
5 May 2013

LG
Improved LTE product portfolio drives improved performance
LG shipped an estimated 15.4M total handsets during the seasonally soft Q1/13. This volume was flat sequentially from the 15.4M units shipped in the seasonally strong Q4/12, and these strong March quarter shipments resulted in LG's global market share increasing sequentially to 3.7% from 3.2%. With an increased focus on smartphones, LG's smartphone sales mix increased from 56% of total units sold in Q4/12 to 67% in the March quarter. Therefore, we estimate LG sold 10.3M smartphones during Q1/13 versus 8.6M in Q4/12. We believe strong sales of LG's high-end Optimus G smartphone, strong Nexus 4 sales, and strong mid- and low-tier Optimus L series smartphone sales drove the improved performance. LG highlighted selling over 1M cumulative Optimus G smartphones in January and highlighted selling over 10M cumulative LTE smartphones in March. Further, with LG announcing the Optimus F series of affordable smartphones, we believe LG is well positioned to grow overall smartphone market share in 2013 through its broad smartphones portfolio. In fact, given LG's improved smartphone product offering and focus on LTE enabled smartphones, we have modeled LG's smartphone market share increasing from 3.6% in 2012 to 4.8% in 2013. Due to increased focus on more profitable smartphones, LG increased its handset industry value share modestly from break-even results over the past four quarters to 1% share of industry profits in Q1/13.

SONY
Improved results due to strong refreshed Xperia series sales
Due to strong global sales of the refreshed Sony Xperia series smartphones including the flagship Xperia Z, we estimate Sony sold 8.9M smartphones during the March quarter versus an estimated 8.7M smartphones during the December quarter. As such, we estimate handset sales increased 4% sequentially to $1.94B in the March quarter. Further, with stronger revenues and strong sales of its flagship Xperia Z smartphone, we estimate Sony's handset business operating margins improved sequentially from -2% in Q4/12 to roughly 1% in Q1/13.

SAMSUNG
Very strong Galaxy S4 launch; solid sales of the reduced-price Galaxy S III
Our April U.S. wireless store surveys indicated strong initial sales in the U.S. for Samsung's flagship Galaxy S4 smartphone at AT&T and Sprint during the last week of April with very strong consumer interest and very positive sales representative reviews. In fact, given the very strong initial sales, consumer interest, and Samsung's marketing budget for the Samsung Galaxy S4 combined with the anticipated soft June quarter for iPhone sales, we believe the Galaxy S4 could emerge as the top selling smartphone during the June quarter. Samsung recently highlighted limited initial supply for the Galaxy S4 given the overwhelming global demand. Our U.S. surveys also indicated solid sales of the reduced price Samsung Galaxy S III at Verizon/AT&T/Sprint as well as at T-Mobile. In addition to strong Galaxy S4 and Galaxy S III sales, our surveys indicated overall strong sales of Samsung's broad smartphone portfolio including mid-tier and low-tier smartphones.

Daily Letter | 15
5 May 2013

Solid Q1/13 smartphone sales and well positioned for Q2/13 share gains
We estimate Samsung shipped 115.5M units in Q1/13 versus 115.2M units in Q4/12 and shipped an incredible 69.7M smartphones versus 63.5M in Q4/12 and 44.5M in Q1/12. In fact, due to very strong sales of the Galaxy S III and Galaxy Note II along with its broad portfolio of mid-tier Android smartphones, Samsung cemented its place as the top smartphone OEM during Q1/13. We estimate Samsung's smartphone market share increased from 28.9% in Q4/12 to 33.0% in Q1/13. Due to Samsung's broad portfolio that includes feature phones at lower price points, Samsung strengthened its leading overall handset unit share with 27.5% global share of handsets sold in Q1/13 versus 24.0% in Q4/12. Further, despite very strong growth of affordable Android smartphones from Chinese OEMs, we estimate Samsung maintained its dominant Android smartphone share with roughly 40% of total Android units sold in Q1/13. We anticipate these trends will continue in Q2/13, as we anticipate stronger Samsung smartphone sales versus March quarter levels given strong global demand for the Galaxy S4 combined with Samsung launching a host of new high-, mid- and low-tier smartphones during the quarter. With the Galaxy S III now selling into the channel at roughly $400, the Galaxy S III mini at sub $300 levels, and the Galaxy S4 likely the top selling high-end smartphone during the June quarter, we believe Samsung has a very compelling mid-tier and high-end smartphone lineup to capture material market share and profit share during Q2/2013.

CHINESE OEMS: HUAWEI, ZTE, & EMERGING “BRANDS”
Strong sales from Chinese smartphone OEMs
We estimate our collective “other OEMs” group that is comprised of Chinese OEMs enjoyed strong sales of affordable 3G Android smartphones during the March quarter in emerging markets, especially in China. The three leading Chinese carriers reported successive record combined 3G subscriber net additions for the months of January, February and March. In addition, Qualcomm, on its recent Q2/F2013 earnings call on April 23, highlighted the success of its Qualcomm Reference Design (QRD) program with over 200 devices based on QRD program launched to date. Further, with both MediaTek and Qualcomm adding quadcore chipset support to their respective turnkey programs, we expect a growing trend of affordable high-end Android smartphones from these local Chinese OEMs. On its Q2/F2013 earnings call, Qualcomm highlighted that these OEMs are now shipping smartphones based on its quad-core Snapdragon 8X25Q QRD solution. Our global surveys also indicated strong TD-SCDMA smartphone sales as evidenced by record TD-SCDMA China Mobile subscriber net additions during the December quarter and then again during the March quarter. We estimate cumulative smartphone shipments from our “other OEMs” group were essentially flat at 46.1M smartphone units in Q1/13 after strong December quarter sales of 46.3M units. This results in our “other OEMs” group slightly increasing their combined smartphone unit market share from 21.1% in Q4/12 to 21.9% in Q1/13. Further, we estimate the larger branded Chinese OEMs, Huawei and ZTE, had a strong Q1/13, benefiting from the same secular trends of growing affordable smartphones penetration in emerging markets as well as from growing sales of their high- and mid-tier flagship smartphone brands. We estimate ZTE shipped 9M smartphones in the March quarter and captured 4.3% smartphone unit market share versus 9.2M smartphone units and 4.2% smartphone unit market share in Q4/12. We believe Huawei shipped an

Daily Letter | 16
5 May 2013 estimated 10.3M smartphones in the March quarter and captured 4.9% smartphone unit market share versus 10.8M smartphone units and 4.9% smartphone unit market share in the December quarter.

AVAGO TECHNOLOGIES (AVGO : NASDAQ : $31.88 | BUY)
Well positioned for strong Wireless division sales du e to LTE smartphone ramp; lowering July quarter estimates due to later anticipated timing for iPhone refresh
We believe our April wireless store surveys are consistent with Avago's Q2/F2013 or April quarter Wireless division guidance for a high single digit sequential decline in sales due to the near-term product transition at leading customer Apple partially offset by ramping FBAR sales into smartphone from other leading OEMs such as Samsung. With the increasing mix of LTE smartphones and Avago's propriet ary FBAR filter technology best suited for increasingly complex LTE smartphone filtering requirements, we anticipate strong Wireless sales growth in H2/C2013 with leading LTE smartphone customers such as Apple, Samsung, and other OEMs. As discussed above, we believe Qualcomm's LTE solutions are gaining material share of the LTE smartphone market, and we believe Avago's FBAR solutions have strong alignment with Qualcomm's LTE solutions. However, our analysis of recent earnings reports from Apple and component suppliers into the iPhone indicate Apple could launch a refreshed iPhone 5S this fall or later in Q3/C2013 versus our prior summer launch expectations. Our previous Avago published model assumed an earlier iPhone 5S refresh, and we are updating our Avago estimates based on our updated iPhone estimates. Please see our Avago note published today titled “Updating estimates for an anticipated later fall iPhone 5 refresh” for further details on our Avago thesis. We reiterate our BUY rating but lowered our price target from $43 to $42.

SKYWORKS (SWKS : NASDAQ : $22.36 | BUY)
Well positioned with C2013 LTE smartphone ramp and increased mix of higher margin analog sales
We believe our April wireless store surveys indicating an increasing mix of LTE smartphones and our expectations for June quarter iPhone weakness are consistent with Skyworks' June quarter guidance for softer revenue growth but higher gross margin. We believe Skyworks' softer-than-seasonal revenue guidance is due to softer iPhone sales partially offset by strong sales ramping into tier-1 LTE smartphone platforms, including up to 8 sockets in some SKUs of the Samsung Galaxy S4. Further, we believe the strong pro forma gross margin guidance of 43.5%-44.0% is due to an increased mix of higher margin design wins ramping in leading smartphone platforms. In fact, given Skyworks' R&D breadth, we believe Skyworks' diverse analog portfolio is well positioned to grow Skyworks' content within its traditional handset base and expand Skyworks' share in markets such as wireless infrastructure, 802.11ac WiFi, and many M2M verticals. As such, we anticipate an increased mix of higher margin analog sales in both the Handset and HPA businesses over the next several quarters, and this is consistent with management's guidance for roughly a 48% gross margin on incremental sales. Please see our Skyworks note published April 25 titled “Diverse socket wins yield slight Q2/F13 beat, LT margin expansion opportunities” for further details on our Skyworks thesis. We reiterate our BUY rating and $27 price target.

Daily Letter | 17
5 May 2013

RF MICRO DEVICES (RFMD : NASDAQ : $5.60 | BUY)
Ramping LTE smartphone design wins combined with strong 3G China sales should enable RFMD to grow much faster than the RFIC market in C2013/14
Our April wireless store surveys indicated very strong initial Samsung Galaxy S4 sales at AT&T and Sprint as well as strong global demand. In fact, Samsung highlighted potentially limited Galaxy S4 initial supply given the overwhelming global demand. Our analysis indicated strong blended RFIC content share for RFMD in the Galaxy S4 with roughly $2$3 of content versus under $1 in the Galaxy S III. Therefore, we believe RFMD's strong Q1/F2014 or June quarter guidance is consistent with the ramp of the Galaxy S4 along with RFMD's increased content share in this high-volume product. We also believe RFMD is gaining share in other LTE smartphones, contributing to the strong overall RFIC sales growth versus the market. Our market analysis also indicates ramping sales of affordable 3G smartphones from Chinese OEMs powered by Qualcomm QRD, MediaTek and Spreadtrum turnkey solutions. We believe RFMD has strong RFIC share with this Chinese OEM base, particularly in TDSCDMA smartphones. Further, with limited iPhone exposure versus other RFIC competitors and strong design momentum for its Phenom, PowerSmart and switch solutions with leading smartphone platforms, we believe RFMD will gain RFIC share throughout C2013. Further, improved capacity utilization, new CMOS PAs, and an overall improving mix of new products ramping on leading smartphone platforms should drive strong margin leverage. Overall, we believe RFMD is well positioned to grow much faster than the RFIC market in F2014/15. Please see our RFMD note published April 24 titled “Strong results and guidance; margins should expand as design wins ramp” for further details on our RFMD thesis. We reiterate our BUY rating and $7.50 price target.

TRIQUINT (TQNT : NASDAQ : $5.97 | HOLD)
Near-term weaker iPhone sales impacts 1H/13 sales, but 2H/13 sales should improve with iPhone product launches and growing BAW filter sales
We believe our April surveys indicating softer iPhone sales versus March quarter levels is consistent with TriQuint's soft June quarter guidance primarily due to its high customer concentration with Foxconn or Apple. Further, our surveys indicate ramping LTE smartphone sales from other leading OEMs such as Samsung, and we believe this is also consistent with TriQuint management's guidance that Q2/13 Mobile sales should increase Q/Q. We believe this guidance implies a material increase in non-iPhone sales that is consistent with our belief strong BAW filter sales are leading to share gains in LTE smartphones for TriQuint. In fact, TriQuint management guided to a significant recovery in 2H/13 sales and anticipates a pro forma profit for full year 2013 despite significant losses in 1H/13. With stronger sales to other smartphone customers offsetting softer iPhone related sales during the June quarter, we believe TriQuint is well positioned for improving growth trends in 2H/13 and 2014 once new Apple products launch, especially if TriQuint maintains or gains content in Apple's new products. Please see our TriQuint note published April 25 titled “iPhone weakness weighs on Q1 results and Q2 guidance but company maintains strong 2H/13 sales ramp expectations” for further details on our TriQuint thesis. We maintain our HOLD rating and $6 price target.

Daily Letter | 18
5 May 2013

PEREGRINE (PSMI : NASDAQ : $9.85 | BUY)
Ramping LTE smartphones should drive strong long-term sales growth, but nearterm weaker iPhone sales impacts 1H/13 sales
Similar to TriQuint, we believe Peregrine's soft June quarter guidance is primarily due to Peregrine's limited near-term visibility given its high customer concentration with Apple and the iPhone 5. While we anticipate stronger 2H/13 sales for Peregrine to LTE smartphones including some content in the refreshed iPhone 5S, we anticipate a gradual 2H/13 recovery in sales levels. Since we anticipate Apple could launch a more affordable 3G-only iPhone for price-elastic international markets that could result in reduced average dollar-content share per iPhone for Peregrine, we believe Peregrine loses more content share than TriQuint on a higher mix of 3G only iPhone SKUs. However, we believe the growing mix of LTE smartphones, particularly those supporting carrier aggregation in 2014, positions Peregrine for strong long-term growth trends consistent with management's 20%-30% longer-term annual sales growth targets. Overall, we believe industry trends with a growing mix of LTE devices supports our longer-term BUY thesis. Please see our Peregrine note published April 30 titled “Solid Q1/13 results and Q2/13 guidance; anticipate 20%-30% longer-term growth” for further details on our Peregrine thesis. We reiterate our BUY rating and $13 price target.

Daily Letter | 19
5 May 2013

Figure 6: Global handset market snapshot
Smartphone Units YoY Growth Global Feature Phone Units YoY Growth Global Handset Units YoY Growth % Smartphone Mix %age Feature Phone Mix 2007 127 2008 139 9% 1,083 5.6% 1,222 6.0% 11% 89% 2009 172 24% 1,039 -4.1% 1,211 -0.9% 14% 86% 2010 297 72% 1,145 10.2% 1,442 19.0% 21% 79% 2011 494 67% 1,119 -2.3% 1,613 11.9% 31% 69% 2012 715 45% 980 -12.4% 1,694 5.0% 42% 58% 2013E 979 37% 829 -15.3% 1,808 6.7% 54% 46% 2014E 1,289 32% 597 -28.0% 1,886 4.3% 68% 32% Top 8 OEMs Smartphone Share 2007 2008 2009 2010 2011 2012 2013E 2014E

1,026

1,153

11% 89%

Nokia BlackBerry Apple Motorola Samsung LG Sonyt HTC Other

47% 11% 3% 3% 2% 0% 3% 3% 28% 100%

43% 16% 10% 2% 3% 0% 2% 9% 15% 100%

39% 20% 15% 2% 3% 0% 1% 7% 13% 100%

34% 16% 16% 5% 8% 2% 3% 8% 8% 100%

16% 11% 19% 4% 19% 4% 4% 9% 14% 100%

5% 5% 19% 3% 30% 4% 4% 4% 27% 100%

3% 3% 14% 1% 36% 5% 4% 3% 30% 100%

4% 2% 15% 1% 40% 4% 3% 3% 29% 100%

2,000

SMARTPHONES AS A MIX OF GLOBAL HANDSET UNITS

597 68% 829 980 54%

6,000

GLOBAL SUBSCRIBERS BY TECHNOLOGY

CDMA - Steady Growth WCDMA - Rapid Growth
5,000

Global Feature Phone Units Smartphone Units

456 443 10% 427
10% 9%

GSM - Secular Decline

10% 12%

1,500
Millions Of Units

% Smartphone Mix

890

1,119 42%
4,000

633 11%

407 10% 289 7%
3,000

436

1,000 1,026 1,083 1,039

1,145 31% 1,289 21% 979 715 494
2011 2012 2013E 2014E 2007 2,000

377 184

11% 6%

500 11% 11%

14%

3,236 2,679
1,000

3,607

3,901

4,193

127
0
2007 2008

139
2009

172
2010

297

2008E

2009E

2010E

2011E

Top 8 OEMs Global Market Share 2007 2008 2009 2010 2011 2012 2013E 2014E

Top 8 OEMs Global Value Share 2007 2008 2009 2010 2011 2012

Nokia BlackBerry Apple Motorola Samsung HTC LG Sony Other

38% 1% 0% 14% 14% 1% 7% 9% 16% 100%

38% 2% 1% 8% 16% 1% 8% 8% 17% 100%

36% 3% 2% 5% 19% 1% 10% 5% 21% 100%

31% 3% 3% 3% 19% 2% 8% 3% 27% 100%

26% 3% 6% 3% 21% 3% 5% 2% 31% 100%

20% 2% 8% 2% 25% 2% 3% 2% 37% 100%

15% 2% 8% 1% 28% 2% 4% 2% 40% 100%

12% 1% 10% 0% 30% 2% 3% 2% 39% 100%

Nokia BlackBerry Apple Motorola Samsung HTC LG Sony

67% 5% 4% -5% 10% 0% 4% 14% 100%

57% 15% 14% -9% 10% 5% 7% 0% 100%

33% 21% 35% -6% 15% 5% 7% -10% 100%

19% 19% 44% -1% 15% 6% -2% 1% 100%

6% 7% 65% 0% 17% 6% -1% -1% 100%

-2% 0% 69% -1% 34% 1% 0% -1% 100%

Source: Company reports, Gartner, Inc., and Canaccord Genuity Estimates

Daily Letter | 20
5 May 2013

Valuation section Apple: Our $560 price target is based on shares trading at roughly 12x our F2014 pro
forma EPS estimate.

Avago: Our $42 price target is based on shares trading at roughly 13x our F2014 pro
forma EPS estimate.

BlackBerry: Our $9 price target is based on our sum-of-parts analysis. HTC: Our NT$240 price target is based on shares trading at roughly 11x our 2014 pro
forma EPS estimate.

Nokia: Our $3.50 price target is based on our sum-of-parts analysis. Peregrine: Our $13 price target is based on shares trading at roughly 17x our 2014 pro
forma EPS estimate.

Qualcomm: Our $85 price target is based on shares trading at roughly 17x our F2014 pro
forma EPS estimate.

RF Micro Devices: Our $7.50 price target is based on shares trading at roughly 11x our
F2015 pro forma EPS estimate.

Skyworks: Our $27 price target is based on shares trading at roughly 10x our F2014 pro
forma EPS estimate.

Spreadtrum: Our $23 price target is based on shares trading at roughly 9x our 2014 pro
forma EPS estimate.

TriQuint: Our $6 price target is based on shares trading at roughly 11x our 2014 pro
forma EPS estimate.

Investment risks
1. 2. 3. 4.

Continued global subscriber growth and recovering emerging market sales Improving global sales mix of smartphones and tablets Healthy handset replacement sales are key variables for our price targets. New law suits or court rulings could change the perceived value of wireless IP portfolios to be higher/lower than we have assumed in our analysis.

Daily Letter | 21
5 May 2013

APPENDIX: IMPORTANT DISCLOSURES Analyst Certification:
Each authoring analyst of Canaccord Genuity whose name appears on the front page of this research hereby certifies that (i) the recommendations and opinions expressed in this research accurately reflect the authoring analyst's personal, independent and objective views about any and all of the designated investments or relevant issuers discussed herein that are within such authoring analyst's coverage universe and (ii) no part of the authoring analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the authoring analyst in the research. Coverage Universe Rating Buy Speculative Buy Hold Sell # % 583 58.2% 60 6.0% 308 30.8% 50 5.0% 1004* 100.0% *Total includes stocks that are Under Review IB Clients % 34.0% 55.0% 13.0% 6.0%

Distribution of Ratings:
Global Stock Ratings (as of 28 March 2013)

Canaccord Genuity Ratings System:

BUY: The stock is expected to generate risk-adjusted returns of over 10% during the next 12 months. HOLD: The stock is expected to generate risk-adjusted returns of 0-10% during the next 12 months. SELL: The stock is expected to generate negative risk-adjusted returns during the next 12 months. NOT RATED: Canaccord Genuity does not provide research coverage of the relevant issuer. “Risk-adjusted return” refers to the expected return in relation to the amount of risk associated with the designated investment or the relevant issuer.

Risk Qualifier:

SPECULATIVE: Stocks bear significantly higher risk that typically cannot be valued by normal fundamental criteria. Investments in the stock may result in material loss. “Canaccord Genuity” is the business name used by certain wholly owned subsidiaries of Canaccord Financial Inc., including Canaccord Genuity Inc., Canaccord Genuity Limited, Canaccord Genuity Corp., and Canaccord Genuity (Australia) Limited, an affiliated company that is 50%-owned by Canaccord Financial Inc. The authoring analysts who are responsible for the preparation of this research are employed by Canaccord Genuity Corp. a Canadian broker-dealer with principal offices located in Vancouver, Calgary, Toronto, Montreal, or Canaccord Genuity Inc., a US broker-dealer with principal offices located in Boston, New York, San Francisco and Houston, a US broker-dealer with principal offices located in New York or Canaccord Genuity Limited., a UK broker-dealer with principal offices located in London and Edinburgh (UK), or Canaccord Genuity (Australia) Limited, an Australian broker-dealer with principal offices located in Sydney and Melbourne. In the event that this is compendium research (covering six or more relevant issuers), Canaccord Genuity and its affiliated companies may choose to provide by reference specific disclosures of the subject companies or its policies and procedures regarding the dissemination of research. To access this material or for more information, please refer to http://disclosures.canaccordgenuity.com/EN/Pages/default.aspx or send a request to Canaccord Genuity Corp. Research, Attn: Disclosures, P.O. Box 10337 Pacific Centre, 2200-609 Granville Street, Vancouver, BC, Canada V7Y 1H2 or disclosures@canaccordgenuity.com. The authoring analysts who are responsible for the preparation of this research have received (or will receive) compensation based upon (among other factors) the Corporate Finance/Investment Banking revenues and general profits of Canaccord Genuity. However, such authoring analysts have not received, and will not receive, compensation that is directly based upon or linked to one or more specific Corporate Finance/Investment Banking activities, or to recommendations contained in the research. Canaccord Genuity and its affiliated companies may have a Corporate Finance/Investment Banking or other relationship with the issuer that is the subject of this research and may trade in any of the designated investments mentioned herein either for their own account or the accounts of their customers, in good faith or in the normal course of market making. Accordingly, Canaccord Genuity or their affiliated companies, principals or employees (other than the authoring analyst(s) who prepared this research) may at any time have a long or short position in any such designated investments, related designated investments or in options, futures or other derivative instruments based thereon. Some regulators require that a firm must establish, implement and make available a policy for managing conflicts of interest arising as a result of publication or distribution of research. This research has been prepared in accordance with Canaccord Genuity's policy on managing conflicts of interest, and information barriers or firewalls have been used where appropriate. Canaccord Genuity's policy is available upon request. The information contained in this research has been compiled by Canaccord Genuity from sources believed to

Daily Letter | 22
5 May 2013
be reliable, but (with the exception of the information about Canaccord Genuity) no representation or warranty, express or implied, is made by Canaccord Genuity, its affiliated companies or any other person as to its fairness, accuracy, completeness or correctness. Canaccord Genuity has not independently verified the facts, assumptions, and estimates contained herein. All estimates, opinions and other information contained in this research constitute Canaccord Genuity's judgement as of the date of this research, are subject to change without notice and are provided in good faith but without legal responsibility or liability. Canaccord Genuity's salespeople, traders, and other professionals may provide oral or written market commentary or trading strategies to our clients and our proprietary trading desk that reflect opinions that are contrary to the opinions expressed in this research. Canaccord Genuity's affiliates, principal trading desk, and investing businesses may make investment decisions that are inconsistent with the recommendations or views expressed in this research. This research is provided for information purposes only and does not constitute an offer or solicitation to buy or sell any designated investments discussed herein in any jurisdiction where such offer or solicitation would be prohibited. As a result, the designated investments discussed in this research may not be eligible for sale in some jurisdictions. This research is not, and under no circumstances should be construed as, a solicitation to act as a securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction. This material is prepared for general circulation to clients and does not have regard to the investment objectives, financial situation or particular needs of any particular person. Investors should obtain advice based on their own individual circumstances before making an investment decision. To the fullest extent permitted by law, none of Canaccord Genuity, its affiliated companies or any other person accepts any liability whatsoever for any direct or consequential loss arising from or relating to any use of the information contained in this research.

For Canadian Residents:

This research has been approved by Canaccord Genuity Corp., which accepts sole responsibility for this research and its dissemination in Canada. Canadian clients wishing to effect transactions in any designated investment discussed should do so through a qualified salesperson of Canaccord Genuity Corp. in their particular province or territory. Canaccord Genuity Inc., a US registered broker-dealer, accepts responsibility for this research and its dissemination in the United States. This research is intended for distribution in the United States only to certain US institutional investors. US clients wishing to effect transactions in any designated investment discussed should do so through a qualified salesperson of Canaccord Genuity Inc. Analyst(s) preparing this report that are not employed by Canaccord Genuity Inc. are resident outside the United States and are not associated persons or employees of any US regulated broker-dealer. Such analyst(s) may not be subject to Rule 2711 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account. This research is distributed in the United Kingdom and elsewhere Europe, as third party research by Canaccord Genuity Limited, which is authorized and regulated by the Financial Conduct Authority. This research is for distribution only to persons who are Eligible Counterparties or Professional Clients only and is exempt from the general restrictions in section 21 of the Financial Services and Markets Act 2000 on the communication of invitations or inducements to engage in investment activity on the grounds that it is being distributed in the United Kingdom only to persons of a kind described in Article 19(5) (Investment Professionals) and 49(2) (High Net Worth companies, unincorporated associations etc) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended). It is not intended to be distributed or passed on, directly or indirectly, to any other class of persons. This material is not for distribution in the United Kingdom or elsewhere in Europe to retail clients, as defined under the rules of the Financial Conduct Authority. This research is sent to you by Canaccord Genuity Wealth (International) Limited (CGWI) for information purposes and is not to be construed as a solicitation or an offer to purchase or sell investments or related financial instruments. This research has been produced by an affiliate of CGWI for circulation to its institutional clients and also CGWI. Its contents have been approved by CGWI and we are providing it to you on the basis that we believe it to be of interest to you. This statement should be read in conjunction with your client agreement, CGWI's current terms of business and the other disclosures and disclaimers contained within this research. If you are in any doubt, you should consult your financial adviser. CGWI is licensed and regulated by the Guernsey Financial Services Commission, the Jersey Financial Services Commission and the Isle of Man Financial Supervision Commission. CGWI is registered in Guernsey and is a wholly owned subsidiary of Canaccord Financial Inc. This research is distributed in Australia by Canaccord Genuity (Australia) Limited ABN 19 075 071 466 holder of AFS Licence No 234666. To the extent that this research contains any advice, this is limited to general advice only. Recipients should take into account their own personal circumstances before making an investment decision. Clients wishing to effect any transactions in any financial products discussed in the research should do so through a qualified representative of Canaccord Genuity (Australia) Limited. Canaccord

For United States Residents:

For United Kingdom and European Residents:

For Jersey, Guernsey and Isle of Man Residents:

For Australian Residents:

Daily Letter | 23
5 May 2013
Genuity Wealth Management is a division of Canaccord Genuity (Australia) Limited. Additional information is available on request. Copyright © Canaccord Genuity Corp. 2013. – Member IIROC/Canadian Investor Protection Fund Copyright © Canaccord Genuity Limited 2013. – Member LSE, authorized and regulated by the Financial Conduct Authority. Copyright © Canaccord Genuity Inc. 2013. – Member FINRA/SIPC Copyright © Canaccord Genuity (Australia) Limited 2013. – Authorized and regulated by ASIC. All rights reserved. All material presented in this document, unless specifically indicated otherwise, is under copyright to Canaccord Genuity Corp., Canaccord Genuity Limited, Canaccord Genuity Inc. or Canaccord Financial Inc. None of the material, nor its content, nor any copy of it, may be altered in any way, or transmitted to or distributed to any other party, without the prior express written permission of the entities listed above.

Sign up to vote on this title
UsefulNot useful