1  Part 1. Overall Mobile Phone Market in China July domestic mobile phone shipmentsreached37.0million units, down 14.1percent year over year. 92 new models were released in the month, up 114.0pe rcent year-over-year (y/y). Over the past 7 months, domestic mobile phone shipments reached233.0 million units and number of new model release reached489,down17.3 percent and 19.8percent y/y respectively. Chart 1: Domestic mobile phone shipments from July 2017 to July 2018 Part 2. Development of 4G Mobile Phones July domestic 4G mobile phone shipments were34.5million units,down 15.6percent y/y, and represented 93.2percent of the total shipments. 65new 4G models were released in the month, up 109.7percent y/y, accounting for70.7percent of the total new models this month. Over the past 7 months, domestic 4G mobile phone shipments were220.2 million units, down 17.5percent y/y, and represented 94.5percent of the total shipments. The total number of new model release reached376, down24.0percent y/y, accounting for 76.9percent of the total new model release. Part 3. Local and MNC Brands of Mobile Phones July mobile phone shipments by the local brands reached 35.2million units, down 10.5percent y/y, accounting for 95.1percent of the domesti c mobile phone shipments. 434144384343391830343837375.1%10.3%5.9%6.2%6.6%5.1%6.9%3.2%6.9%4.6%4.7%4.1%6.8% 0.1%0.0% 0.0% 0.0% 0.0%0.1%0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 94.8%89.6%94.1%93.8%93.4%94.8%93.0%96.8%93.0%95.4%95.3%95.9%93.2% 0%50%100%150% 01020304050 17M7 17M8 17M9 17M10 17M11 17M12 18M1 18M2 18M3 18M4 18M5 18M6 18M7 Shipments(Unit: Million) 2G Share 3G Share 4G Share 2  Number of new models released by the local brands (80 units)increased by 100.0 percent y/y, and represented 87.0percent of the total number of new model release in the month. Mobile phone shipmentvolume for year 2018by the local brands r eached210.8million units, down 17.4percent y/y, and accounted for 90.5 percent of the domestic mobile phone shipments. Number of new models released by the local brands (447units) decreased by 22.1 percent y/y,and represented91.4 percent of the total number of new model release in the domestic market. Chart 2: July 2018 mobile phone shipments by local and MNC brands Part 4. Development of Smart Phones July smart phone shipments were34.2million units,down 16.3 percent y/y, and accounted for 92.4percent of the domestic mobile phone shipments in the month. Over the past 7months, smart phone shipments were219.6million units, down 17.6percent y/y, and represented 94.2percent ofdomestic mobile phone shipments. In July, 65new smart phone models were released, up 116.7 percent y/y, and accounted for 70.7percent of the number of new release.Over the past 7 months,376new smart phone models were released, down 22.0 percent y/y, and accounted for 76.9percent of the number of new release.   Local Brands95.1%MNC Brands4.9%