1 Part 1 . Overall Mobile Phone Market in China October domestic mobile phone shipments reached 36.0 million units, down 6.7 percent year over year. 49 new models were released in the month, up 2.1 percent year -over-year (y/y). Over the past 10 months, d omestic mobile phone shipments reached 323.3 million units and number of new model release reached 482 down 5.8 percent and 29.4 percent y/y respectively. Chart 1: Domestic mobile phone shipment s from October 2018 to October 2019 Part 2 . Development of 4G Mobile Phones September domestic 4G mobile phone shipments were 32.2 million units, down 6.0 percent y/y, and represented 89.6 percent of the total shipments. 31 new 4G models were released in the month, down 3.1 percent y/y, accounting for 63.3 percent of the total new models this month. Over the past 10 months, domestic 4G mobile phone shipments were 306.8 million units, down 5.4 percent y/y, and represented 94.9 percent of the total shipments. The total number of new model release reached 351, down 32.5 percent y/y, accounting for 72.8 percent of the total new model release. -20.9%-11.7%0.9% -18.2%-16.3%-12.8% -19.9%-6.0%6.7% 1.2% -6.3%-7.5%-5.3% -7.1% -6.7% -25%-20%-15%-10%-5%0%5%10% 051015202530354045 M8 M9 M10 M11 M12 M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 2018 2019 shipments (Unit:Million) y/y 2 Part 3 . Local and MNC Brands of Mobile Phones October mobile phone shipments by the local brands reached 30.5 million units, down 6.1 percent y/y, accounting for 84.9 percent of the domestic mobile phone shipments. Number of new model s released by the local brands (45 units) increased by 15.4 percent y/y, and represented 91.8 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 294.5 million units, down 4.4 percent y/y, and accounted for 91.1 percent of the domestic mobile phone shipments. Number of new models released by the local brands ( 429 units) decreased by 30.8 percent y/y, and represented 89.0 percent of the total number of new model release in the domestic market. Chart 2: October 2019 mobile phone shipments by local and MNC brands Part 4 . Development of Smart Phones October smart phone shipments were 34.6 million units, down 4.5 percent y/y, and accounted for 96.2 percent of the domestic mobile phone shipments in the month. Over the past 10 months, smart phone shipments were 309.4 million units, down 4.3 percent y/y, and represented 95.7 percent of domestic mobile phone shipments. In October , 31 new smart phone models were released, down 3.1 percent y/y, and accounted for 63.3 percent of the number of new release. Over the past 10 months, 363 new smart phone models were released, down 30.1 percent y/y, and accounted for 75.3 percent of the number of new release. Local Brands 84.9%MNC Brands 15.1%

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