Na­tion gains top spot in iOS app mar­ket

China Daily (USA) - - BUSINESS - By OUYANG SHIJIA ouyang­shi­jia@ chi­nadaily.com.cn

China has sur­passed the United States to be­come the world’s largest iOS app mar­ket in the third quar­ter, ac­cord­ing to a re­port re­leased on Thurs­day by App An­nie, a US-based mo­bile an­a­lyt­ics com­pany.

The com­pany said that with 75 per­cent of rev­enue from games, China’s iOS rev­enue ex­ceeded $1.7 bil­lion in the lat­est quar­ter, lead­ing the US by more than 15 per­cent.

Haim Men­del­son, pro­fes­sor at the Stan­ford Grad­u­ate School of Busi­ness, said that the Chi­nese mo­bile in­ter­net was mov­ing ahead of the US and there would be more of the mo­bile in­no­va­tions tak­ing place in China.

“Be­cause of the size of the Chi­nese mar­ket, the in­creas­ing num­ber of peo­ple in the mid­dle class who can af­ford an iPhone, and the in­creas­ing pen­e­tra­tion and use of the mo­bile in­ter­net in China, there is al­ready more money to be made on apps in China com­pared to the US.

“This im­plies that in­vest­ments in in­no­va­tion will be in­creas­ingly tar­geted on the Chi­nese mar­ket, and cou­pled with the in­crease in in­no­va­tive ca­pac­ity in China.”

Dai Bin, re­gion di­rec­tor of Greater China at App An­nie, said: “China earn­ing the No 1 place in the iOS mar­ket by rev­enue is a huge mile­stone for the app ecosys­tem. As an app pub­lisher or mar­keter, if China wasn’t a key pri­or­ity in your app strat­egy, it should be now.”

Dai added that in terms of ab­so­lute rev­enue growth, games are fol­lowed by en­ter­tain­ment apps, with video stream­ing apps such as iQIYI, Ten­cent Video and Youku.

The re­port also shows that in China, the top gross­ing cat­e­gories out­side of games on iOS in the lat­est quar­ter in­volve en­ter­tain­ment, so­cial net­work­ing books, photo and video, all of which have more than tripled in rev­enue yearon-year.

An­other mo­bile mar­ket mon­i­tor New­zoo noted that by 2020, the global app mar­ket will in­crease to $80.6 bil­lion, while the pro­por­tion of rev­enue in the games cat­e­gory will de­cline to 72 per­cent.

Ac­cord­ing to New­zoo, as the growth of rev­enue of games slowed, the non-games app will en­ter into a new stage of rapid de­vel­op­ment.

“There is a trend of con­tent con­sump­tion. Be­fore, the ma­jor­ity of in­ter­net users pre­ferred to pay for real items. How­ever, with an in­crease in av­er­age in­comes, now more Chi­nese will pay for con­tent con­sump­tion, such as watch­ing on­line videos,” said Xue Yongfeng, an an­a­lyst at Bei­jing-based in­ter­net con­sul­tancy Analysys.

China’s iOS app rev­enue growth is set to con­tinue, with the largest ab­so­lute rev­enue growth than any coun­try by 2020, ac­cord­ing to App An­nie.

HUANG JIEXIAN / FOR CHINA DAILY

A boy plays with a smart­phone in an outlet of Ap­ple Inc in Qing­dao, Shan­dong prov­ince.

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