1 Part 1 . Overall Mobile Phone Market in China October domestic mobile phone shipments reached 38.5 million units, up 0.9 percent year over year. 48 new models were released in the month, down 25.0 percent year -over-year (y/y). Over the past 10 months, d omestic mobile phone shipments reached 343.2 million units and number of new model release reached 683, down 15.3 percent and 23.0 percent y/y respectively. Chart 1: Domestic mobile phone shipment s from October 2017 to October 2018 Part 2 . Development of 4G Mobile Phones October domestic 4G mobile phone shipments were 36.4 million units, up 1.6 percent y/y, and represented 94.5 percent of the total shipments. 32 new 4G models were released in the month, down 36.0 percent y/y, accounting for 66.7 percent of the total new models this month. Over the past 10 months, domestic 4G mobile phone shipments were 324.3 million units, down 15.0 percent y/y, and represented 94.5 percent of the total shipments. The total number of new model release reached 520 down 25.8 percent y/y, accounting for 76.1 percent of the total new model release. Part 3 . Local and MNC Brands of Mobile Phones October mobile phone shipments by the local brands reached 32.5 million units, up 1.9 38 43 43 39 18 30 34 38 37 37 33 39 39 6.2% 6.6% 5.1% 6.9% 3.2% 6.9% 4.6% 4.7% 4.1% 6.8% 6.1% 5.1% 5.2% 0.0% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.3% 93.8% 93.4% 94.8% 93.0% 96.8% 93.0% 95.4% 95.3% 95.9% 93.2% 93.9% 94.8% 94.5% 0%20%40%60%80%100%120% 01020304050 17M10 17M11 17M12 18M1 18M2 18M3 18M4 18M5 18M6 18M7 18M8 18M9 18M10 Shipments(Unit: Million) 2G Share 3G Share 4G Share 2 percent y/y, accounting for 84.4 percent of the domestic mobile phone shipments. Number of new model s released by the local brands (39 units) decreased by 36.1 percent y/y, and represented 81.3 percent of the total number of new model release in the month. Mobile phone shipment volume for year 201 8 by the local brands reached 308.0 million units, down 15.2 percent y/y, and accounted for 89.8 percent of the domestic mobile phone shipments. Number of new models released by the local brands ( 621 units) decreased by 25.0 percent y/y, and represented 90.9 percent of the total number of new model release in the domestic market. Chart 2: October 2018 mobile phone shipments by local and MNC brands Part 4 . Development of Smart Phones October smart phone shipments were 36.3 million units, up 1.3 percent y/y, and accounted for 94.1 percent of the domestic mobile phone shipments in the month. Over the past 10 months, smart phone shipments were 323.1 million units, down 15.1 percent y/y, and represented 94.1 percent of domestic mobile phone shipments. In October , 32 new smart phone models were released, down 36.0 percent y/y, and accounted for 66.7 percent of the number of new release. Over the past 10 months, 519 new smart phone models were released, down 24.7 percent y/y, and accounted for 76.0 percent of the number of new release. Local Brands 84.4% MNC Brands 15.6%

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