Smartphone shipments in China could increase from 74mn in 2011 to 200mn in 2012E (vs. an estimated 150mn previously). Rmb500smartphone has been the key cause of growth driven by: 1) theproliferation of smartphone models in this category; 2) a variety ofaffordable mobile content at your fingertips, and 3) widely available2G/3G/WiFi network access. We conduct an in-depth analysis of the user experience of the Rmb500 smartphone in this Note.