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China makes up 40% of global iOS app revenue


04-11-2017 09:51 BJT

(Source: CGTN)
Thanks to China's massive consumer base, app downloads globally were up 15 percent in 2016, with revenue figures up another 40 percent. China contributed to almost one-third of global app revenue and also became the leading source of iOS App Store revenue in 2016. However, the success of an app is not only defined by revenue generated, but also by user retention.

According to data analysis firm NewZoo, Chinese app revenues in 2016 dialled in at around a staggering 12 billion US dollars.

And, this was split between two major competitors - Android apps took just over half of the share, with 7 billions dollars worth of apps, while Apple's iOS made up the rest.

But market analysis firm App Annie says the iOS app share was bigger than suggested figures, generating closer to half of the entire market.

"I think the government is trying to help a lot for start-ups and entrepreneurs to succeed, but at the same time, in order to really succeed the key is to have the right business model," Dai Bin, director of APP Annie, China Office, said.

For decades, products made in China have been stigmatized as low quality goods when compared to their western-manufactured counterparts.

But today, the world has greater expectations for what comes out of China, especially when it comes to high-tech goods.

The likes of Baidu, Alibaba and Tencent, have all left their marks on the global stage, but China still has more to offer.

"China is leading the global app trends in 2016, I think the technology is no longer a hinder to the mobile internet industry, but what is holding the industry back is innovation. There are no longer technological difficulties or barriers," Dai said.

The average Chinese person uses almost 40 apps per month, far ahead of the international average. But for any outsiders trying to get a piece of the pie, it might be hard.

"If you are an international App and you want to come to China you have to develop a totally different SDK. Chinese local apps dominate...for number one downloaded and number one time occupied...Right now the China Mobile Application Market is at its prime, you have to think of new edges that nobody else has thought about yet," Elaine Wang, general manger of Tencent Westart, said.

This morning I got up and checked my email on NetEase mail, then ordered breakfast on Baidu Waimai and paid with Wechat Pay. I realized I was running late for work so I decided to order a cab with Didi, but the traffic was so bad so I got out of the car mid journey and hopped on an Ofo bike.

The Chinese App market is giving us a glimpse into the future with its vast variety of products. Literally allowing us to do anything on our phones.

Internet users in China reached 668 million in June 2015, with 549 million of those users, almost 90%, accessing the internet on a mobile device. In other words, the number of internet users in China is more than twice the population of the US.

Vue, a video enhancement app that is less than a year old, has already acquired more than 10 million users worldwide, with more than one million daily users.

Being voted a top app on the Apple app store in South Korea, China and the island of Taiwan, the co-founder says going global was not that hard as their app is universal in its usage.

"The trend is, the media used to be on text, pictures, voice and now we're going to videos, AR or VR.  So I think our app is just on the trend," Co-founder of Vue Kuang Fei said.

Whether its Chinese apps going global or international apps going local. Chinese apps and the app market have undoubtedly earned their way up to the top, making up almost one-third of Global App Revenues and, it may well keep on growing.

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