Umeng 2013 first half insight report of china mobile market

Sep 2013

In second season of 2013, the growth of active devices in China results in more than 500 million—340 million Android active devices and 150 million iOS active devices, doubled than half a year ago.

Low and middle end Android devices have achieved substantial growth, hoping to win their position in mainland market. Up to Jun 2013, Lenovo gets to the second place instead of HTC.

Only 30% of users try out new apps every month. In addition, the top 10% users who are the most curious and adventurous ones downloaded 66% of all the new apps.

90% of active Android devices in China have been used less than 14 months.

Developer team size in mainland China becomes bigger, and those teams greater than or equal to 51 members has increased by 40%. 25% apps are aiming at the overseas markets.

30.5% iOS has been jailbroken in mainland China, 10% lower than that of last year, but still 17% higher than international standards.

* Note: Device in this report is refer to active device—with at least one session of an app on Umeng platform in a given time period, not the device shipments.

Key Findings

China Mobile Internet Trend:

Fragmentation and Shorter Life Cycle

1

In the second season of 2013, there are more than 500 million active devices in China—340 million Android active devices, 150 million iOS active devices and 7.4 million active devices of Windows Phone and Windows RT, doubled than half a year ago.

More than 500 million active devices in China

160mln

250mln

340mln

85mln

130mln 150mln

2012 Q4 2013 Q1 2013 Q2

Active Device Growth Trend in Mainland China

Android iOS

Data Source: Umeng Analytics Platform www.umeng.com

Up to Jun 2013, there are 130,000 apps and over 50,000 developers on Umeng platform with a continuous increasing monthly growth rate. 10,000 has come to Umeng platform in June.

Continuous increase of developers and APPs

22000

40000

72000

100000

130000

2900

4600

6500

9000

10000

0

2000

4000

6000

8000

10000

0

60000

120000

180000

Dec 2011 May 2012 Oct 2012 Mar 2013 Jun 2013

Trend of App Increase and Monthly

Growth Rate

Apps on Umeng platform Monthly Growth Rate



Apple dropped and domestic brands rises to a new height

Apple’s total share in China has dropped 5.4% since no new device was unveiled in this half year. On the contrary, various Android devices has shown up and achieved new share height. Domestic brands grow promptly including Lenovo, Huawei, Xiaomi, Coolpad, ZTE, OPPO, BBK and other main brands.

0%

10%

20%

30%

40%

50%

Top 10 Market Share of Domestic

Terminal Brands

Jan 2013 Jun 2013

Up to Jun 2013, Lenovo gets to the second place instead of HTC (the second top last year), Xiaomi ranks into the top five and BBK enters the top 10.


Domestic Android brands boom


22.1%

8.4%

7.0%

7.0%

5.9%

5.2% 4.7%

3.7%

2.7%

2.1%

31.1%

Android Device Brand

Distribution (Jun 2013)

Samsung

Lenovo

Huawei

HTC

Xiaomi

Coolpad

ZTE

OPPO

BBK

Motorola

Others

21.3%

10.1%

6.4%

6.3% 5.5%

4.9% 5.1%

4.1%

3.1%

3.8%

29.3%

Android Device Brand

Distribution (Dec 2012)

Samsung

HTC

Lenovo

Huawei

ZTE

Coolpad

Xioami

Motorola

OPPO

Sony/Sony Ericsson

Others

62%

28%

10%

Android Device Lifecycle

0-6 months

7-14 months

15 months and above

Now in China, 62% of the Android devices have been used for 0 to 6 months, 28% have been used for 7 to 14 months, only 10% have a lifecycle longer than 14 months. In other words, 90% of the users would buy a new Android device 14 months after their previous purchase. Above all, the lifecycle of China’s Android devices is around 14 months.

Google has clarified its 18 month Android upgrade program in 2011, indicating the lifecycle of Android devices is at least 18 months. Without doubt, China’s Android pace is faster than Google has anticipated.

90% of active Android devices in China have been used less than 14 months


0%

20%

40%

60%

80%

100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Ap

p D

ow

nlo

aded

an

d A

ctiv

ate

d (

%)

User Coverage

Percentage of China Android users trying out new apps

According to Umeng Analytics for the month of April, only 30% of users try out new apps. In addition, the top 10% users who are the most curious and adventurous ones downloaded 66% of all the new apps.

Only 30% of users per month prefer to try out new apps


“Diversified” and “fragmented” are the most appropriate words to describe China’s app distribution channels. There are more than 100 distribution channels in China. Top 10 channels only cover half of the total downloads. 46% of apps distribute on more than 5 distribution channels.

Google Play only takes up 5.6% of the total downloads, suffering a huge drop from 21% of end 2010.

Meanwhile, diversified channels bring challenges to product managers. Evaluating different channels and optimizing channel combinations are the priority of every app developer.

Domestic Android distribution channels: diversified and fragmented

72.6%

8.5%

5.6%

4.2%

2.5% 0.6% 5.9%

Android App Distribution Channels

Third Party app market

Producers' app market

Google Play

Online ads

Application official website

Operators' app market

others


At weekend users in first tier cities like Photo Management apps most and the frequency has increased by 53% in 2013 first half, the following popular app categories are Games and Traffic Navigation with a 46% and 16% increase.

Users in second tier cities prefer to play games at home, seeing a 54% increase in the first half year. Those Photo Management and Video apps are also their favorite. To enjoy videos and playing games at home are their perfect relaxing life at weekends.


Users’ Weekend Life: first tier cities for shooting; second and third tier

cities enjoying videos at home

Top 3 Daily Use Frequency Growth Rate (Per User at Weekend)

First Tier Districts Second and Third Tier Districts

16%

46%

53%

Navigation

Game

Photo

Management

17%

46%

54%

Video

Photo

Management

Game

Developers in China: Getting to know more about their users

2

Developer team size in China becomes bigger, and those teams greater than or equal to 51 members has increased by 40%. With team size grows, more excellent products are expected to be developed.

The team size of China mobile developers grows fast

0%

10%

20%

30%

40%

50%

Ind

ivid

ual

2-1

0

11

-50

51-2

00

201-5

00

Mo

re t

han

500

Developer Team Size Distribution on Umeng

Platform 2012 2013

Data Source: Umeng Analytics

Developers in China have shown great interest to the overseas app markets. 25% apps have been developed to compete in these markets.*

Although 78% apps are for domestic users, developers in China come to take their place in overseas market, 20% developers having at least one app for the overseas markets.


Over1/5 mainland developers are aiming at overseas markets


* Note: An app is recognized as for overseas users if 75% of its sessions are from overseas..

25%

75%

Market Distribution of Mainland

Apps (Domestic vs Overseas)

App for

domestic users

App for

overseas users

22%

78%

Market Interest of Mainland

Developers (Domestic vs Overseas)

Developer for

domestic users

Developer for

overseas users

54% developers will use cross-platform technology within 2 years

Larger amount of developers are considering to use cross-platform technology, and the ratio will be 54% within two years.

PhoneGap is the most popular among all cross-platform technologies with 60% of developers who are using or intend to use it.



46.1%

12.8%

16.5%

24.7%

No

interest

Next

year

This year

Used

Interest to Use Cross-Platform

Technology

57.5%

29.0%

21.0%

7.6% 5.6%

14.6%

PhoneGap Appcan Appmobi Sencha Rexsee Others

Distribution of Html5 Cross-

Platform Being Used

Cloud service is also in a great demand for developers. 27% of them have already deployed server on the cloud service and another 46% plan to use cloud service in two years.


73% developers will use cloud service for app management in two years

Deployed in

the cloud

service

provider

27%

Plan to use this

year

26%

Plan to start next

year

20%

No Plan

27%

Others

73%

Mobile App Server-Side Deployment

Analysis on

Device Distribution and User Activity 3

In 2013 first half, the jailbroken rate in mainland China reached its peak—34%--as new perfect jailbroken version was released, while it saw a reduction when iOS 6.1.3 came. Overall, the jailbroken rate has decreased by around 10% than last year.

However, the overseas jailbroken rate is much lower, 13.7% in June which is 17% lower than that in china.


iOS jailbroken rate in mainland China is 30.7%


15%

20%

25%

30%

35%

40%

Jan

2013

Feb

2013

Mar

2013

Ap

r 2013

May

2013

Jun

2013

iOS Jailbroken Rate Change in

China

30.5%

13.7%

Domestic Overseas

iOS Jailbroken Rate Distribution

Domestic vs Overseas

(Jun 2013)

For those Android users, 3G is much more frequently used in overseas than in China. In Jun 2013, 36.1% users in China connect the internet through 2G and only 18.9% use 3G, much lower than 36.8% of overseas.


2G still takes the majority of Android mobile networks

36.1%

12.3%

18.9%

36.8%

44.9%

50.8%

Domestic

Overseas

Android Networks Distribution

(Overseas vs Domestic)

2G 3G wifi

In 2013 first half, Android and iOS devices still take the majority of all active devices. During this time period, Android active device ratio has increased by almost 5% and expected a continuous rising until Apple unveil its new products in 2013.


Android active device ratio has increased 5% in 2013 first half

0%

20%

40%

60%

80%

100%

Jan

2013

Feb

2013

Mar

2013

Ap

r 2013

May

20

13

Jun

2013

OS Platform Distribution of Active Users

in 2013 First Half

Windows Series

iOS

Android

From the chart below we can find that the market share of iOS 6.1 and Android 4.1 continues to increase during 2013 first half.

iOS 6.1 shares 60% of iOS market，Android 4.1 has saw a 24% increase



0%

20%

40%

60%

80%

Jan

2013

Feb

2013

Mar

2013

Apr

2013

May

2013

Jun

2013

iOS Versions Distribution Trend

6.1

6.0

5.1

5.0

0%

20%

40%

60%

Jan

2013

Feb

2013

Mar

2013

Apr

2013

May

2013

Jun

2013

Android OS Version

Distribution Trend

4.1

4.0

2.3

2.2

iPad Mini continues expanding its total share in China in 2013 first half. In June, it takes 16.8% of iOS market and monthly active devices has increased to 5.5 million, 1,6 times than half a year ago. Thanks to its friendly price and easy-to-carry body, iPad Mini has won its fever in China.


iPad Mini—1.6 times share growth than half a year ago

0%

5%

10%

15%

20%

Jan

2013

Feb

2013

Mar

2013

Apr

2013

May

2013

June

2013

iOS Market Share of iPad Mini

Glossary:

Active Device: active device refers to device which has activated at least one app covered by Umeng platform in the stipulated time frame. All the “devices” in the report refers to “active devices”, not the actual shipment.

Release Date:

September 2013

Data Source:

Analysis data in the report is based on over 130,000 Android and iOS apps from Umeng platform. All data was collected from January to June 2013.

Statement:

All data belong to Umeng platform. Any people and organization is permitted to quote the report, please cite original source when using this data.

About

Umeng Analytics

Umeng App Analytics Platform is the leading and largest provider of mobile app analytics and developer services in China. We help app developers to analyse user behaviour, enabling them to stategize to efficiently distribute and promote their apps. Umeng covers more than 100,000 apps across iOS, Android, Windows Phone and Windows 8 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.

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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 maximize inventory value, growing the size and value of app users.

UMENG Product Overview

Social Component

First in China to combine and integrate social networking functions and analytics together. Social Component helps apps to easily gain social networking elements such as login, like, comments etc., supported with timely, all rounded analytics.

Umeng Index

Umeng provides key indexes for app category, app market performance, mobile device models, OS platforms, resolution, internet connection methods, user distribution. These statistics lend a helping hand to all who want to understand the trends in China mobile internet industry.

UMENG Product Overview

Umeng, a Beijing-based startup founded in April 2010, offers enterprise-class analytics, App Network and Social network plugin to over 130,000 apps across iOS, Android, 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.

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