Services are application enhancement activities offered by companies to their customers. Services are offered by companies during the phases of the product lifecycle. Artificial intelligence as a service (AIaaS) incorporates a range of services that offer AI tools through cloud computing services.

For the second level, the market is split based on application, which includes telecom (telephone service, internet service, along with new communications technologies such as VoIP, CATV, and HDTV), oil & gas (material sensing & high bandwidth communications), aerospace & defense (secure communication, weapon system, surveillance system, optical computing, Unmanned Aerial Vehicle (UAV), military vehicle sensing), BFSI (data center & data repository services), medical (biomedical sensing, minimal invasive surgery, imaging and other applications) and railway (railway maintenance, speed monitoring, dynamic load calculation). The Other applications segment mainly includes the architecture and construction segment and the utility sector. The medical imaging segment further includes endoscopy, Magnetic resonance imaging (MRI), Computed Tomography (CT), Positron Emission Tomography (PET), X-radiation (X-Ray) scanning and other associated imaging technologies.

The revenue of China’s communication equipment sector in the first half of 2018 rose by 10.9% y/y, boosted by increased sales of mobile communication station equipment, according to a report released by the Ministry of Industry and Information Technology (MIIT). The sector’s total profit during this period slid by 4.3% y/y due to increased costs. The gross value added of communications equipment manufacturing in H1 2018 increased by 13.4% y/y, higher than the 12.4% y/y growth of the electronic manufacturing sector, the MIIT said. The higher production of mobile communication station equipment contributed to the growth. From January to June 2018, the output of mobile communication station equipment was up by 1.2% y/y to 145.1mn gates, driven by increased construction of mobile communication base stations. At the end of June 2018, the total number of mobile communication base stations in China reached 6.2mn, up from 5.9mn a year earlier.

Highly centralised healthcare sector, controlled by the government. Smallest medical device market in the Americas region. • Other medical devices, consumables and diagnostic imaging have the highest market shares. Market heavily reliant on medical device imports, particularly from Europe, China and Japan. Lack of advanced medical device manufacturing capacity. Moderate medical device market growth over the forecast period. One of the smallest per capita medical device expenditures in the region.

上周小米MIX3及华为Mate20系列国内正式发布，其中MIX3除硬件配置持续升级外，机身采用黑、绿、蓝三种配色的四曲面陶瓷机壳，意味彩色陶瓷机壳真正进入量产时代；Mate20系列国内起售仅3999元，相比海外版低2000元以上，同时在摄像、无线快充、大电池强续航等方面创新领先，有望成为爆款机型。后4G时代，国产机加速追赶并实现局部超越，合作打造爆款机型的国内供应商持续受益，看好相关公司业绩表现。上周高通在其5G峰会上公布大批5G手机客户，国内5G频谱有望于近期发布，而小米计划2019Q1上市MIX35G版本，OPPO宣布首次实现手机5G上网，预计明年5G商用手机的推进有望好于预期。持续看好围绕5G的射频、光学、陶瓷材料、无线充电等智能机创新，推荐立讯精密、欧菲科技、三环集团、顺络电子等。

本周，上证综指上涨1.90%，创业板指上涨1.06%，电子（申万）指数上涨1.17%。本周涨幅前五的股票是雪莱特、雷曼股份、宇顺电子、东旭B和劲胜智能；跌幅靠前的是大族激光、扬杰科技、宏达电子、广东骏亚以及圣邦股份。目前，电子板块TTM市盈率（整体法，剔除负值）处于21.72倍，相对于全部A股（非金融）的溢价比为1.32。