1 Part 1 . Overall Mobile Phone Market in China May domestic mobile phone shipments reached 38.3 million units, up 1.2 percent year over year. 41 new models were released in the month, down 33.9 percent year -over-year (y/y). Over the past 5 months, d omestic mobile phone shipments reached 151.8 million units and number of new model release reached 208, down 4.8 percent and 35.6 percent y/y respectively. Chart 1: Domestic mobile phone shipment s from May 2018 to May 2019 Part 2 . Development of 4G Mobile Phones May domestic 4G mobile phone shipments were 36.5 million units, up 1.2 percent y/y, and represented 95.3 percent of the total shipments. 34 new 4G models were released in the month, down 35.8 percent y/y, accounting for 82.9 percent of the total new models this month. Over the past 5 months, domestic 4G mobile phone shipments were 144.6 million units, down 4.0 percent y/y, and represented 95.3 percent of the total shipments. The total number of new model r elease reached 169, down 32.9 percent y/y, accounting for 81.3 percent of the total new model release. 38 37 373339 3935 36 34 152837 38 5% 4%7% 6% 5% 5% 5% 6% 5% 3% 5% 5% 5%0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%95% 96%93% 94%95%95% 95% 94% 95% 96% 95% 95% 95% 0%20%40%60%80%100%120% 01020304050 18M5 18M6 18M7 18M8 18M9 18M10 18M11 18M12 19M1 19M2 19M3 19M4 19M5 Shipments(Unit: Million) 2G Share 3G Share 4G Share 2 Part 3 . Local and MNC Brands of Mobile Phones May mobile phone shipments by the local brands reached 35.0 million units, up 2.7 percent y/y, accounting for 91.3 percent of the domestic mobile phone shipments. Number of new model s released by the local brands (37 units) decreased by 32.7 percent y/y, and represented 90.2 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 139.7 million units, down 1.3 percent y/y, and accounted for 92.1 percent of the domestic mobile phone shipments. Number of new models released by the local brands ( 184 units) decreased by 38.0 percent y/y, and represented 88.5 percent of the total number of new model release in the domestic market. Chart 2: May 2019 mobile phone shipments by local and MNC brands Part 4 . Development of Smart Phones May smart phone shipments were 36.4 million units, up 1.3 percent y/y, and accounted for 95.1 percent of the domestic mobile phone shipments in the month. Over the past 5 months, smart phone shipments were 144.3 million units, down 4.1 percent y/y, and represented 95.1 percent of domestic mobile phone shipments. In May, 33 new smart phone models were released, down 37.7 percent y/y, and accounted for 80.5 percent of the number of new release. Over the past 5 months, 165 new smart phone models wer e released, down 35.0 percent y/y, and accounted for 79.3 percent of the number of new release. Local Brands 91.3%MNC Brands 8.7%

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