The number of active smart devices in China exceeded 700 Million by the end of 2013.
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- Oliver Warner
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2 Main Conclusions The number of active smart devices in China exceeded 700 Million by the end of The five fastest growing mobile apps categories (excluding games) are : news, health & fitness, social networking, business, and navigation. These areas will bring new opportunities for developers in Socializing your apps is the key to success for developers. Currently among the top 1,000 apps (apps and games) in the Chinese market, 55% of them provide links to Chinese social networking services (e.g. Sina Weibo, Wechat, QQ, Renren) The amount of app content sharing to social network platforms per mobile Internet user per day has tripled in the last 6 months. Social network sharing in game has become incredibly popular on all social networking platforms, 48% of in app sharing traffic to social networks are from games.
3 Main Conclusions High-end smart phones (pricing above 500US$) have a significant market share in China, contributing 27% of total devices. These users have dynamic needs on mobile apps. The users of below 150US$ phones prefer casual games for their entertainment requirements. The year of 2013 became known as the first year Chinese developers took officially licensed IP seriously with many developers licensing IP from rights holders. By the end of 2013, among the Top 100 games, 20% license 3rd party IP. Over the course of 2013 the percentage of ios jailbroken devices in the Chinese Mainland fell to 13% of all devices. Domestic users are becoming more hesitant to jailbreak their devices.
4 700 Million active smart devices in China By the end of 2013, the number of ac6ve smart devices in China had exceeded 700,000,000, including smart phones and tablets. In the 4 th quarter 59% of new devices were bought by smartphone users upgrading their exis6ng hardware. The remaining new devices where bought by users buying their first smartphone. As smartphone use becomes more commonplace in China new sales are increasingly driven by exis6ng users upgrading, rather than from users purchasing their first smartphone. The increasing trend of domestic active devices The percentage of upgrading their exiting devices in the total number of active devices 380M 500M 590M 700M 56% 59% 2013Q1 2013Q2 2013Q3 2013Q4 2013Q3 2013Q4
5 Faster growing categories in 2013: news, health care and social networking The five fastest growing areas (in terms of the number of users in 2013, excluding games) were news, health care, social networking, business, and naviga6on. These areas will bring new opportuni6es for developers in Interes6ngly, social networking apps were among the top 3 in 2013, for new ways of social (pictures, Gif/ short videos) and ver6cal social group requirements s (e.g. connec6on, da6ng, paren6ng) 275% The growth rate of active users by app category % 212% 202% 193% 157% 150% 140% 140% 110% 109% 107% 92% 91% 73% News Health SNS Business Navigation Entertainment IM Photographyu Education Books Finance Travel Utilities Catalogs Music
6 High-end smart phones have a significant market share in China The market for budget Android phones is strong in China with 57% of devices under 330 USD price range. However over a quarter of users are using high- end smart phones cos6ng over 500USD, 80% of these are iphones. Distribution of price ranges of smart phones in China 27% 35% USD USD % 22% USD USD 500+
7 4G just took off in China In December 2013, the app launch benefi6ng from 4G services counted for 1 of the total, with the daily launch of over two million. From June to December 2013, app usage via 4G has grown by 57%. 4G just took off in China at the end of the year Umeng observes that, while 3G services were launched in May 2009 uptake was rela6vely slow with only 18% of app usage benefi6ng from 3G services as late as end Umeng es6mates that it will be 2015 before we see an explosion in 4G access rates. Most of the 4G users in the Chinese Mainland use LTE- mode mobile phones newly launched by Samsung, HTC, Sony and Coolpad. Recently, All Chinese operators are star6ng promo6ng 4G network to consumers. The access of domestic Android devices Jun 2013 Dec 2013 Grow by 24% Grow by 57% Total 4G
8 Mobile app users became more interested in sharing on social network In 2013, mobile app users became more interested in sharing on social networking pla_orms. In December 2013, the number of sharing on social networking pla_orms per mobile Internet user per day was triple of that in July This increase was largely due to large amounts of promo6on on social networking pla_orms, developers making sharing more user friendly, and also by rewarding users who shared app informa6on with credits or other benefits saw the emergence of apps that became popular overnight through viral promo6on on social network (Wechat, Weibo..), such as a causal game Crazy Guess Figure and a photo app MomentCam. Currently, among the top 1,000 apps (apps and games) in the Chinese market, 46% provide Social ac6ons including social sharing and/or social network login func6ons. The por6on jumps to 55% among the top 100. Sharing on social networking pla_orms has gradually become a standard func6on of apps. APP ranking Social functionalities Penetration (December 2013) 55% 55% TOP 100 TOP % TOP % TOP % TOP 2000 *Data Source: ranking data of 30 domestic mainstream App markets and App /store!
9 Sharing of app content to social networks has seen explosive growth Sharing of app content to social networks has seen explosive growth; 8600% growth for WeChat, 2900% for QQZone between March and November % of shared content comes from games. Since word- of- mouth communica6on is a key channel for game promo6on, in 2013, lots of mobile games added the link to sharing on social networking pla_orms. Besides games, photography apps are also popular, especially on WeChat and Weibo. These apps allow easy sharing of photos on the go to friends via social networks. More tradi6onal social network sites such as QQzone and RenRen see a larger mix of app interac6on, probably reflec6ng the difference between mobile and desktop internet habits. 100% 50% 0% Distribution of content shared on social network platforms Others QQ zone Renren Sina weibo Tencent weibo WeChat Catalogs Health Video News Music Entertainment Photography Games
10 Chinese developers took officially licensed IP seriously By December 2013, among the Top 100 games, 20% use an exis6ng well known, officially licensed IP to make their mobile games, including Dad Where Are We Going?, and Despicable Me, etc. The figure was only 13% in June The year of 2013 was known as the first year of mobile game IP in China. With the loyalty of fans, game developer realized an well known, officially licensed IP/brand will help them easily to amract IP fans and get promoted in the app store and poten6ally acquire more high value uses. The portion of Top 100 mobile games license 3 rd party IP 13% 20% Jun 2013 Dec 2013 *Data Source: ranking data of 30 domestic mainstream App markets and App /store!
11 The term casual games is becoming a misnomer In 2013, the amount of 6me users spent playing casual games increased, especially the 6me spent playing adventure, leisure and card games. In fact the term casual games is becoming a misnomer as users are spending large blocks of 6me playing these games rather than dipping in and out as was once the case. The improvement of hardware such as the processor, memory and graphics card of mobile phones has improved the overall gaming experience and led to a more engaging gaming experience. Growth of daily time spend Per user Behavior of casual game users % 150% 100% 50% 0% -50% 0% 50% 100% 150% 200% Action Puzzle Card Leisure Simulation Sports Education -50% Growth of daily session per user Adventure
12 High-end device users favor hard-core games while low-end device users prefer casual games In 2013, users of mobile phones priced more than USD 500 spend more 6me playing hard- core games, with the per user game 6me per day 1.6 6mes of that of under USD 150 phone users. But the situa6on with casual games is just the opposite. Low- end phone users spend the longest 6me playing casual games per capita per day, 1.6 6mes of that of high- end phone users. High- end phones have hardware configura6on more suitable for heavy games. As a result, their users spend more 6me on this type of games. Large por6on of low- end phone users are mobile game beginners. Distribution of daily length of time spent per user by device price The length of time of lowend mobile phones is 1.6 times of that of high-end phones Hardcore Games Light Games USD 500+ USD USD USD The length of time of high-end phones is 1.6 times of that of USD 150 phones
13 Users of low-end devices prefer entertainment while high-end device users have dynamic needs Users of phones priced blow $150 tend to spend more 6me playing games and their most favorite app categories is theme & wallpaper. They use smartphone to meet their entertainment demands. They are open sensi6ve to the price, have low requirements for the performance of phones, tend to be affected by pre- installed apps, and are less likely to use e- commerce, finance, health and lifestyle apps. Users of high- end devices have more diverse needs and favour apps for news, naviga6on, finance, and e- commerce. They might have certain economic power, but more importantly, they rely on mobile Internet and their life pamerns will be shown on mobile devices, such as their demands for geqng informa6on, learning, shopping, finance management. App usage by category by device price USD USD USD USD % 11.1% 9.2% 8.9% 8.1% 7.4% 7.2% 5.5% 3.8% 4.2% 3.4% 3.4% 2.6% 2.6% 1.5% 1.9% 3.2% 1.5% 1.6% 2.4% 1.2% 1.1% 1.1% 1.6% 0.8% 0.8% 0.6% 1.0% Wallpaper Games Photography News Navigation Finance Catalogs
14 Fragmented Android device market In the 4th quarter of 2013, Samsung and XiaoMi (a local brand) prove to be the most popular Android brands as between them they manufacture all of the top 10 ac6ve Android devices. However the Android market is s6ll highly fragmented with hundreds of different handsets on the market. Samsung who manufacture many devices in all price ranges control 24% of the device market, while the domes6c manufactures are bamling it out with the interna6onal brands to extend their market share. TOP 10 active Android devices 2013 Q4 Brand distribution of active Android devices 2013 Q4 Samsung Galaxy SIII 2.7% Samsung Samsung Galaxy Note II 2.7% Lenovo Samsung Galaxy S IV Xiaomi 2S 1.8% 1.8% 30% 24% Huawei Xiaomi Samsung Galaxy SII 1.7% HTC Samsung Galaxy Ace 1.3% 8% Coolpad Xiaomi 1S Samsung Galaxy Note Xiaomi M2 Xiaomi M1 1.2% 1.2% 1.2% 0.9% 2% 3% 4% 4% 5% 5% 7% 8% OPPO ZTE BBK Sony
15 In 2013, ios jailbreak devices in China fell to 13% The number of jailbroken ios devices con6nues to fall (from 30% at the beginning of the year, to 13% at the end of the year). China has now become one of the first launch areas for ios devices, users can easily and quickly get the new devices through official channels instead of purchasing jailbroken devices through the blackmarket. Also tools like Kuaiyong Apple Assistant, which offers free versions of paid apps in Appstore, makes jailbreaking less amrac6ve. Finally users are becoming aware of the security risks of using a jailbroken phone. Percentage of jailbreak device in 2013 Jailbreak percentage by ios devices December % 30% 20% 10% 0% Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013 ipod touch 5 ipod touch 4 iphone 5 iphone 4S iphone 4 iphone 3GS ipad mini ipad 4 The New ipad ipad 2 Jailbroken Other 0% 50% 100%
16 A large growth in WiFi connectivity In 2013, changes to device connec6vity saw a large growth in WiFi connec6vity, from 38% at the beginning of the year to 52% at year end. Mobile Internet infrastructure has become bemer in China. However Chinese users are s6ll price sensi6ve to mobile data tariff. 100% Android device connectivity 50% 3G 2G WIFI 0% Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013
17 About Glossary: Ac,ve Device: ac6ve device refers to device which has ac6vated at least one app covered by Umeng pla_orm in the s6pulated 6me frame. All the devices in the report refers to ac6ve devices, not the actual shipment. Release Date: March 2014 Data Source: Analysis data in the report is based on over 210,000 Android and ios apps from the Umeng pla_orm. All data was collected from January to December Statement: All data belong to Umeng pla_orm. Any people and organiza6on are permimed to quote the report, please cite original source when using this data.!
18 Umeng products Analytics Umeng Analytics is the leading mobile app analytical platform in China. We provide enterprise level analytics solutions to developers, allowing in depth analysis of user behavior and assist developers to efficiently distribute their apps and maximize monetization opportunities. Over 210,000 apps use Umeng across ios, Android, Windows Phone and Windows 8 platforms. Share Umeng share helps developer integrate more than 10 main stream social network share modules like Weib and WeChat quickly, super easy and smooth. User feedback Listening to feedback from your users is important to your app performance. Encouraging user feedback would bring improvements to your app and lead to higher user engagement. Crash Report Crash Report is specially developed with app developers in mind, providing detailed reports on issues with apps and the exact causes. With the help of Crash Report, you can tackle problems more efficiently.
19 Umeng is the largest mobile app analytics platform in China. Umeng's state-of-the-art mobile analytics, developer tools and data-powered cross-promotion platform helps developers increase the size and value of app audiences and maximize monetization opportunity. More than 75,000 developers, 210,000 apps use Umeng across IOS, Android and other platforms. The team is working around the clock to build better solutions for mobile app developers.
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