1 Part 1 . Overall Mobile Phone Market in China June domestic mobile phone shipments reached 34.3 million units, down 6.3 percent year over year. 38 new models were released in the month, down 48.6 percent year -over-year (y/y). Over the past 6 months, d omestic mobile phone shipments reached 186.1 million units and number of new model release reached 246, down 5.1 percent and 38.0 percent y/y respectively. Chart 1: Domestic mobile phone shipment s from June 2018 to June 2019 Part 2 . Development of 4G Mobile Phones June domestic 4G mobile phone shipments were 33.3 million units, down 5.2 percent y/y, and represented 96.9 percent of the total shipments. 28 new 4G models were released in the month, down 52.5 percent y/y, accounti ng for 73.7 percent of the total new models this month. Over the past 6 months, domestic 4G mobile phone shipments were 177.9 million units, down 4.2 percent y/y, and represented 95.6 percent of the total shipments. The total number of new model release reached 197, down 36.7 percent y/y, accounting for 80.1 percent of the total new model release. 37 373339 3935 36 34 152837 3834 4%7% 6% 5% 5% 5% 6% 5% 3% 5% 5% 5% 3%0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%96%93% 94% 95%95%95% 94% 95% 96% 95% 95% 95% 97% 0%20%40%60%80%100%120% 01020304050 18M6 18M7 18M8 18M9 18M10 18M11 18M12 19M1 19M2 19M3 19M4 19M5 19M6 Shipments(Unit: Million) 2G Share 3G Share 4G Share 2 Part 3 . Local and MNC Brands of Mobile Phones June mobile phone shipments by the local brands reached 32.7 million units, down 4.1 percent y/y, accounting for 95.2 percent of the domestic mobile phone shipments. Number of new model s released by the local brands (37 units) decreased by 47.1 percent y/y, and represented 97.4 percent of the total number of new model release in the month. Mobile phone shipment volume for year 201 9 by the local brands reached 172.4 million units, down 1.8 percent y/y, and accounted for 92.7 percent of the domestic mobile phone shipments. Number of new models released by the local brands ( 221 units) decreased by 39.8 percent y/y, and represented 89.8 percent of the total number of new model release in the domestic market. Chart 2: June 2019 mobile phone shipments by local and MNC brands Part 4 . Development of Smart Phones June smart phone shipments were 33.2 million units, down 5.0 percent y/y, and accounted for 96.8 percent of the domestic mobile phone shipments in the month. Over the past 6 months, smart phone shipments were 177.5 million units, down 4.3 percent y/y, and represented 95.4 percent of domestic mobile phone shipments. In June , 27 new smart phone models were released, down 52.6 percent y/y, and accounted for 71.1 percent of the number of new release. Over the past 6 months, 192 new smart phone models were released, down 38.3 percent y/y, and accounted for 78.0 percent of the number of new release. Local Brands 95.2%MNC Brands 4.8%

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