umeng china mobile internet market insight report q3 2012

China Mobile Internet Market Insight Report Q3 2012

November 2012

Oct 2012, A total of 200 million Android and iOS devices in use in China. In Q3 2012, monthly sessions of apps increased by 223% compared to that in Q2. China’s mobile internet industry has reached a new peak.

iPad sales in China perform better than the global average. In particular, the New iPad has helped Apple to increase its already dominant market share within China’s tablet market.

China iOS devices exceeded 60 million units, yet iPhone overall market share dropped slightly.

42.4% of mainland iOS devices are jailbroken, down from last year.

Samsung market share continues to grow, with HTC and Lenovo 2nd and 3rd.

High sales of the latest Android devices means that Android 4.0 has become the second most used Android version.

Mobile gaming remains a growth sector with China’s game developers branching out with not only titles for mainland China but also international markets. One thing to note is, Chinese players spend more time in their games compared to international users.

*Devices refer to active devices covered by UMENG platform that has activated at least one app session within the stipulated time frame.

Device Trends 1

In Q3 2012, the number of iOS and Android devices topped the 200 million mark. This represents an increase of 125% from 6 months ago. The 200 million devices breaks down to 140 million Android and 60 million iOS devices.

In Q3 2012, China’s month sessions of mobile apps increased by 223% compared to that in Q2. China’s mobile internet industry has reached a new peak.

X

3.2X

2012 Q2 2012 Q3

Upward trend in average monthly sessions of mobile apps

223%

Mar 2012 Oct 2012

Growth in smart devices in mainland China

iOS Android

87 million

200 million 125%

Data Source: Umeng Analytics Platform Data Source: Umeng Analytics Platform

iPad currently holds 79% of China’s tablet market, which is higher than the global iPad share of 68%. This shows that iPad still stands strong in the China market.*

2012 Q3, iPad accounts for 16% of iOS devices, dropping 3% from last quarter. This is due to the lack of new iPad models in this quarter. In addition, users are thought to be waiting for iPad Mini and iPad 4. In addition, the newly released iPhone 5, coupled with a drop in price of iPhone 4 has increased the number of iPhones in the market.

*Global iPad statistics source: Apple official figures

16%

84%

iPad VS iPhone Proportion

iPad

iPhone

79%

21%

Distribution of tablets in

mainland China

iPad

Other Tablets


With so many previous generations of devices in the market Apple faces a challenge to convince users to upgrade. The New iPad seems to be achieving this as it already accounts for over 28% of all iPad models.

The new iPhone5 is yet to see an official release in China it will be interesting to see if the lack of a 4G network in China will reduce sales when it is released.

9.4%

47.3% 15.2%

28.1%

iPad Model Distribution (Sep 2012)

iPad 1

iPad2 WiFi

iPad2 3G

The New iPad

Data Source: Umeng Analytics Platform

51.1% 45.0%

0.1% 4.8%

iPhone Model Distribution

(Sep 2012)

iPhone 4

iPhone 4S

iPhone 5

Others


2012 Q3, China’s iOS devices exceeded 60 million units. However with the growing popularity of the Android platform, iOS’s overall market share dropped 5% compared by Q2 2012.

Apple’s loss of market share is mainly due to mainland brands such as Lenovo and Xiaomi producing popular mass market smartphones.

38%

15% 11%

5%

5%

4%

22%

Smartphone brand distribution in China (2012 Q2)

Apple

Samsung

HTC

Motorola

ZTE

Huawei

Others


33%

18% 9%

5%

5%

4%

26%

Smartphone brand distribution in China (2012 Q3)

Apple

Samsung

HTC

Lenovo

Huawei

ZTE

Others

The iPhone5 is yet to receive an official launch in mainland China, however some users have already got their hands on one. As of end September, iPhone 5 stands at 0.1% market share within China. This is similar to the first month when iPhone 4S was released in China.

As with other iOS devices the early adaptors come from the relatively wealthy and well connected provinces of Guangdong, Zhejiang, Beijing and Jiangsu.

2.1%

2.1%

2.1%

2.5%

4.5%

6.3%

7.9%

8.6%

8.7%

12.3%

Hubei

Henan

Yunnan

Liaoning

Fujian

Shanghai

Jiangsu

Beijing

Zhejiang

Guangdong

Top 10 Cities using iPhone 5


20.1%

22.4%

24.2%

29.6%

8.4%

16.3%

31.1%

iPod touch 4th Gen

iPad 2 3G

iPad 2 WiFi

The New iPad

iPhone 3GS

iPhone 4

iPhone 4S

Comparison of iOS devices that upgraded to iOS 6


72 hours after the launch of iOS 6.0, using daily session counts to track, iOS6 version already had 11.3% market share. As of end September, this figure rose to 23%.

Individually comparing against the iOS devices, iPhone 4S has 31.1% of its users upgrading to iOS 6.0, ranking first among the iOS devices. Second and third in place are the New iPad (29.6%) and iPad 2 WiFi (24.2%).

0%

5%

10%

15%

20%

25%

2012

/9/2

0

2012

/9/2

1

2012

/9/2

2

2012

/9/2

3

2012

/9/2

4

2012

/9/2

5

2012

/9/2

6

2012

/9/2

7

2012

/9/2

8

2012

/9/2

9

2012

/9/3

0

Trend of upgrade to iOS 6 23.1%

11.3%

By September 2012, 42.4% of iOS devices in China are jailbroken devices. This number is high but is a drop from the figure of 51.0% 2011 Q2. Comparing against all iOS devices, iPad jailbroken devices stand at 39.8%, while jailbroken iPhones stand at 43.8%.

There are many possible reasons for the drop in Jailbroken phones, one reason is that Apple allowed Mainland credit cards to be used at the Appstore.

37.0%

31.9%

32.4%

48.3%

36.1%

48.6%

69.2%

The New iPad

iPad 2 WiFi

iPad 2 3G

iPad 1

iPhone 4S

iPhone 4

iPhone 3GS

Jailbreak Comparison amongst main iOS devices (Sep 2012)

42.4%

42.4%

57.6%

iOS Jailbroken devices proportion in China (Sep 2012)

Jailbroken Devices

Non-jailbroken

devices


Android 4.0 has reached a share of 23.4% in China, overtaking Android 2.2, becoming Android’s second most used version. App developers should put more attention into Android 4.0 version.

60.5% 23.4%

10.8%

5.3%

2012 Q3 Android OS Version Distribution

2.3

4.0

2.2

Others 0%

10%

20%

30%

40%

50%

60%

70%

80%

Jan Feb Mar Apr May Jun Jul Aug Sep

Android Version Change Trend

2.3 4.0 2.2 Others


iOS upgrade delivery system is slicker than Android. As a result the majority of Android users don’t upgrade. The majority of Android 4.X users have the new OS pre-installed on the phone.

Among the Top 10 devices for Android 4.0 and above, 8 of them already come pre installed with Android 4.0 or above. In particular, Samsung Galaxy SIII and Xiaomi 1S have had spectacular performances.

1.82%

1.88%

1.97%

2.05%

2.41%

2.63%

2.88%

3.16%

6.17%

7.19%

HTC Desire VC(T328d)

Lenovo lePhone P700

HTC Sensation XE(G18)

Sony LT26i(Xperia S)

Xiaomi M1

Xiaomi 1S

HTC Desire VT(T328t)

HTC Desire V(T328w)

Samsung Galaxy SIII

Huawei C8812

Top 10 Devices for Android 4.0 and above (Sep 2012)


Android 4.0 Pre-installed Android 2.3 Pre-installed

As expected, Samsung is still the leading Android brand. In addition, Lenovo has shot up to third place, holding 8% share, contributed by the various promotions of its devices such as A60, A65, LePhone P700.

This quarter, the Top 10 Android Devices list welcomes new entrant Samsung Galaxy Note into its ranks. In addition, it is also note-worthy that Samsung Galaxy SIII was ranked fourth in the list in September 2012.

1.65%

1.67%

1.74%

1.80%

1.95%

1.97%

2.05%

3.04%

3.35%

3.98%

ZTE Blade U880

Huawei C8650

Samsung Galaxy S

HTC Desire S(G12)

HTC incredible S(G11)

Motorola Defy

Samsung Galaxy Note

Xiaomi M1

Samsung Galaxy Ace

Samsung Galaxy SII

Top 10 Android Devices (2012 Q3)


27%

14%

8% 7% 6%

38%

Android brand distribution(2012 Q3 )

Samsung

HTC

Lenovo

Huawei

ZTE

Others

App and App Developers 2

Since end of year 2011, the number of mobile applications using Umeng’s analytics services has almost doubled. The Chinese mobile internet industry is developing at an extraordinary pace.

22000

40000

52000

65000

Dec 2011 May 2012 Jul 2012 Sep 2012

Apps covered by Umeng steadily increasing


While Chinese app developers tend to focus only on their own market, they are increasingly willing to explore the potential of the international market too. In 2012, there was an increase of 43.2% in the number of game developers on Umeng Analytics who ventured into the international market, maintaining an upward trend of game apps going global.

43.2%

2012 Q3 New game developers

New game developers who venture into the international market


The top 5 game categories for new games added in the recent half year are action, casual, puzzle, board/card and strategy games.

22.0%

9.6%

14.1%

14.9%

17.3%

22.1%

Others

Strategy

Board/Card

Puzzle

Casual

Action

Top 5 Newly developed games in 2012 (by category)


In half a year, the app developer team sizes have changed dramatically, with individual app developers decreasing from 28% to 10%. However, team sizes of 2 to 50 people and those with more than 50 people have increased in general. Apps in development are becoming more ambitious.

28%

70%

2%

App Developer Team Size Distribution (Mar 2012)

Individual

2-50 ppl

>50 ppl

10%

77%

13%

App Developer Team Size Distribution (Sep 2012)

Individual

2-50 ppl

>50 ppl

Data Source: Umeng Analytics Service Feedback Survey


Largest App developer communities are within Beijing, Guangdong and Shanghai, although there are smaller vibrant communities in other cities such as Chengdu.

1.8%

2.2%

2.2%

3.0%

3.8%

4.7%

5.2%

13.3%

16.2%

33.8%

Shaanxi

non-China

Hubei

Sichuan

Zhejiang

Jiangsu

Fujian

Shanghai

Guangdong

Beijing

Geographical Distribution of App Developers


User Behavior 3

Non-China gamers are more loyal than China gamers with higher retention rates

Non-China vs China player second day retention rates are 27% and 24% respectively

Non-China vs China player retention rates on the second week are 45% and 38% respectively


China gamers spend more time in their games compared to non-China gamers, clocking higher daily app sessions and app usage lengths.

China gamers spend 1.2 times more time in each app session compared to non-China gamers.

China gamers activate 1.4 times more daily app sessions compared to non-China gamers.


In a 24-hour period, the number of gamers will reach a small peak around 12 noon before dropping. It will rise again from around 4pm and peak at 9pm before dropping slowly again.

After 6pm, more and more users start to use music and video apps, peaking at around 10pm. Between 12 to 2am, night owls prefer to watch videos and listen to music more than play games. In addition, there is also a peak in video app usage during 12pm, perhaps due to users’ habit of watching videos for relaxation purposes during their lunch break.

0%

2%

4%

6%

8%

10%

0 2 4 6 8 10 12 14 16 18 20 22

Music, Video, Game app usage over a 24-hour period Music Video Game


83% of the times when entertainment apps are used, each app session lasts for less than 10 minutes, out of which, 59.1% lasts for less than 3 minutes. This shows that entertainment apps are used by users while they are on-the-go.

After understanding this user behavior, app developers should take note to design products that can capture users’ attention in a short time in order to retain more users and improve app value.

17.0%

23.9%

59.1%

> 10 mins

3-10 mins

< 3 mins

Single app session length distribution for entertainment and game apps


Looking at the spread of WiFi, Shanghai, cities such as Beijing, Shandong, Jiangsu, Zhejiang have higher WiFi penetration rate. In particular, Shanghai has the highest WiFi penetration rate with 56.0% of the Shanghai users connecting via WiFi everyday.

Even in the day, the use of WiFi is comparable to 2G/3G. After 6pm, users connecting via WiFi steadily increases till 2am. At 7pm, the use of WiFi exceeds that of 2G/3G. This trend shows the prevalent use of WiFi in offices and homes.

0 2 4 6 8 10 12 14 16 18 20 22

Method of Internet Connection over a 24-hour period

wifi 2G/3G App session


0%

10%

20%

30%

40%

50%

60%

Top 10 Chinese cities that uses the most WIFI

Definition of terms:

Devices: All devices in this report refer to active devices covered by Umeng platform that has activated at least one app session within the stipulated time frame.

Release Date:

November 2012

Data Source:

Analysis data based on over 60,000 Mainland Android and iOS apps from Umeng platform. Data is taken between the period of July to September 2012.

Statement:

Above data belong to Umeng platform. Any use of data can be used for free provided that Umeng is quoted as the original source.

Contact us : [email protected]

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Umeng Analytics Platform

Umeng App Analytics Platform is the leading and largest provider of mobile app analytics and developer services in China. Umeng offers enterprise-class analytics to thousands of mobile app developers in over 65,000 apps across iOS, Android and Windows Phone platforms.

UMtrack

The lack of an official iOS apps channel analytics tool that is easy to use and provide accurate data is a constant challenge for iOS app developers. Umeng’s Umtrack provides developers with accurate analysis of users, helping app developers track their users whom have come from different channels.

App network

App network is a total solution for app developers that integrates in-house ads, cross-promotion and advertising. It delivers efficient distribution for apps and helps apps to maximise inventory value, growing the size and value of app users.

Umeng, a Beijing-based startup founded in April 2010, is the leading and largest provider of mobile app analytics and developer services platform in China. Umeng offers enterprise-class analytics to over 65,000 apps across iOS, Android and Windows Phone platforms. Umeng has since raised more than USD10 million from Matrix Partners and Innovation Works. The team is working around the clock to build better solutions for mobile app developers.

www.umeng.com [email protected]

umeng china mobile internet market insight report q3 2012

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