UMENG Insight Report

Main Conclusions
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The number of active smart devices in China exceeded 700 Million by the end
of 2013.
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 2014.
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.
Main Conclusions
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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.
700 Million active smart devices in China
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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 4th 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 percentage of upgrading
their exiting devices in the total
number of active devices
The increasing trend of
domestic active devices
59%
590M
380M
2013Q1
700M
500M
2013Q2
56%
2013Q3
2013Q4
Data Source: Umeng Analytics Platform www.umeng.com
2013Q3
2013Q4
Data Source: Umeng Analytics Platform www.umeng.com
Faster growing categories in 2013: news, health care and social
networking
The growth rate of active users by app category
2012-2013
275%
220% 212%
202% 193%
91%
73%
Music
92%
Catalogs
Travel
Finance
Books
Education
Photographyu
IM
Entertainment
Navigation
Business
SNS
110% 109% 107%
Utilities
157% 150%
140% 140%
Health
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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 2014. 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) News
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Data Source: Umeng Analytics Platform www.umeng.com
High-end smart phones have a significant market share in China
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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 1-149
USD 150-329
USD 330-499
16%
22%
USD 500+
Data Source: Umeng Analytics Platform www.umeng.com
4G just took off in China
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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 2013. 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 2011. 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
Grow by
24%
Total
Dec 2013
Grow by
57%
4G
Data Source: Umeng Analytics Platform www.umeng.com
Mobile app users became more interested in sharing on social network
55%
53%
46%
APP
ranking
TOP 2000
39%
TOP 1000
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55%
TOP 500
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Social functionalities
Penetration (December 2013)
TOP 200
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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 2013. 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. 2013 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. TOP 100
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*Data Source: ranking data of 30 domestic mainstream App markets and App /store !
Sharing of app content to social networks has seen explosive growth
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Sharing of app content to social networks has seen explosive growth; 8600% growth for WeChat, 2900% for QQZone between March and November 2013. 48% 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. Distribution of content shared on social network
platforms
Others
100%
Catalogs
Health
Video
50%
News
Music
Entertainment
0%
QQ zone
Renren
Sina
weibo
Tencent
weibo
WeChat
Photography
Games
Data Source: Umeng Analytics Platform www.umeng.com
Chinese developers took officially licensed IP seriously
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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 2013. 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 3rd party IP
20%
13%
Jun 2013
Dec 2013
*Data Source: ranking data of 30 domestic mainstream App markets and App /store !
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. Behavior of casual game users 2012-2013
200%
Growth of daily time spend
Per user
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Action
Puzzle
150%
Card
100%
Leisure
Simulation
50%
Sports
0%
-50%
0%
-50%
50%
100%
150%
Growth of daily session per user
200%
Education
Adventure
Data Source: Umeng Analytics Platform www.umeng.com
High-end device users favor hard-core games while low-end
device users prefer casual games
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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 330-499
The length of time of
high-end phones is 1.6
times of that of USD
150 phones
USD 150-329
USD 1-149
2
1
0
1
2
Data Source: Umeng Analytics Platform www.umeng.com
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. } 
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App usage by category by device price
USD 1-149
USD 150-329
USD 330-499
USD 500+
11.1%
10.8%
8.9%
9.2%
7.4%
5.5%
Wallpaper
8.1%
7.2%
Games
3.8%
3.4%
2.6%
1.5%
4.2%
3.4%
2.6%
1.9%
Photography
News
1.5%
1.2%
1.1%
0.8%
Navigation
1.6%
1.1%
0.8%
0.6%
Finance
3.2%
2.4%
1.6%
1.0%
Catalogs
Data Source: Umeng Analytics Platform www.umeng.com
Fragmented Android device market
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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
1.8%
Xiaomi 2S
1.8%
Samsung Galaxy SII
1.7%
Samsung Galaxy Ace
1.3%
Xiaomi 1S
1.2%
Samsung Galaxy Note
1.2%
Xiaomi M2
1.2%
Xiaomi M1
0.9%
Data Source: Umeng Analytics Platform www.umeng.com
24%
30%
Huawei
Xiaomi
HTC
8%
2%
8%
3%
4%
4%
5% 5%
7%
Coolpad
OPPO
ZTE
BBK
Sony
Data Source: Umeng Analytics Platform www.umeng.com
In 2013, iOS jailbreak devices in China fell to 13%
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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 2013
Jailbroken
40%
30%
20%
Dec 2013
Nov 2013
Oct 2013
Sep 2013
Aug 2013
Jul 2013
Jun 2013
May 2013
Apr 2013
Mar 2013
Feb 2013
0%
Jan 2013
10%
Data Source: Umeng Analytics Platform www.umeng.com
Other
iPod touch 5
iPod touch 4
iPhone 5
iPhone 4S
iPhone 4
iPhone 3GS
iPad mini
iPad 4
The New iPad
iPad 2
0%
50%
100%
Data Source: Umeng Analytics Platform www.umeng.com
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. Android device connectivity
100%
50%
3G
2G
Dec 2013
Nov 2013
Oct 2013
Sep 2013
Aug 2013
Jul 2013
Jun 2013
May 2013
Apr 2013
Mar 2013
0%
Feb 2013
WIFI
Jan 2013
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Data Source: Umeng Analytics Platform www.umeng.com
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 2013. } 
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.!
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