Chinese Market Beats the US in iOS App Download
China, the most populous country in the world not only retained its number one ranking in games, now it also became the largest market for Apple Store revenue. It holds the record of earning 1.7 billion dollars in revenue in the third quarter of 2016 (Q3 2016). It was about 15 percent higher than the America, which spent around 1.45 billion dollars during the same duration.Apple’s App Store in China
The App Store was initiated in the year of 2008 that permits users to download mobile applications, which are designed specifically for Apple’s iOS SDK such as iPhone, iPad, and iPod devices. Apple users in China spend more time on the devices than they spend in two years ago and it was about five times more than their previous year usage.
According to the reports, the United States had been ranked as number one in iOS market since 2010. Some of the reports estimated that China will drive the largest revenue hike for any country by the year of 2020.
The enormous growth in the revenue of iOS App Store was mainly because of the games, which almost contribute more than 75 percent of revenue. There was a huge growth in the revenue of Photo and video sharing, Social networking, Books and Entertainment apps that tripled their revenue year-over-year. These popular categories increased their revenue 3.5 times from their revenue in Q3 2015.
In China, gaming apps are the second rapidly developing category and video streaming apps such as Tencent Video, iQIYI, and Youku are playing a vital role in China’s communication applications such as Inke, QQ, and Momo.
List of most downloaded apps in China
Chinese people are showing more interest to buy video games, especially to the multiplayer interactive players where people can play as a group or against other peoples. Addition to the video games, Chinese consumers are purchasing more video-streaming apps such as Youku and Tencent video and other entertainment apps.
Pokémon Go was the most downloaded gaming app in China that reached 600 million dollars in terms of revenue which was faster than all other apps until now. It reached the milestone 5 times quicker than Puzzle and Dragons; above 6.2 times faster than the Clash of Clans, a highly successful gaming app; and 2.5 times rapid than Candy Crush Saga.
When compared with the remaining games, Pokémon Go contributes 45 percent to the total time spent in an app. It collected around 600 million dollars in revenue. All the remaining applications are accounted for 55 percent of the total time spent on Android. Pokémon Go holds a position in the best five apps for Android and placed in 4th place behind the popular apps such as Chrome, YouTube, and Facebook.
Some of the most downloaded apps other than Pokémon Go included Messenger, Uber, Facebook, Whatsapp, YouTube, Hero MOBA (China’s app), Instagram, Bitmoji, Prisma, Google Maps and then Snapchat. Some of the most downloaded Chinese apps were Youku, iQIYI, Snake Wars, Tencent Video, National K Song, Meituan and Didi Chuxing.
The popular Android apps are also beginning similarly, but there were no any Chinese apps and the remaining apps were mostly U.S based utilities, games and other entertainment apps.
Progress of China in iOS revenue development
China held third place in the third quarter of 2015 in which the U.S placed at the top with one billion dollars and Japan with 800 million dollars was stand behind the US. The revenue of the Chinese iOS market has gained higher because of some mobile streaming apps such as Youku, Inke, QQ and more. In contrast, the US and Japan obtained revenue with the help of Netflix, a video streaming app.
China has defeated Japan, which holds the second place in the top rankings of iOS revenue. China became the top second ranking country next to the U.S after it twice their revenue from 2014 to 2015 to reach 3.4 billion dollars. In 2016, the total app revenue of China is guessed to increase 35 percent to hit 4.6 billion dollars.
Attentiveness of Apple towards China
In September 2016, Apple has set up their first R&D (Research and Development) centre in China, which involves the primary investment of 15 million dollars that approximately equal to CNY 100 million. The centre will be started at Wangjing area of Beijing. The total investment for this set up will ultimately reach 45 million dollars, which were about 300 million CNY. The administrative committee posted that it will consist of roughly 500 employees.
The US technology giant Apple Inc announced that the Research and Development (R&D) centre of their company will be set up in Shenzhen, a metropolis of China. This centre will target more on developing software, computers, video and audio devices and also other electronic devices.
Apple had invested about one billion dollars into the China’s most popular ride-sharing platform, Didi Chuxing in the month of May. UnionPay shoppers, an association of Chinese bank card and Apple also introduced Apple pay. It was predicted that China will become the largest market for Apple in two years and there will be a double to 40 in the number of Apple stores present in the China.
Apple showed great interests to attract more talented software developers to its platform in Shenzhen. The aim of the Apple to set up these research centers in China to strengthening their relationships with educational institutions and local partners within the country. Apple has already set up their R&D centers in the U.K, Japan, and Israel and it was reported that Apple planning to initiate the similar centers in India, Vietnam, Canada and more.
Apple’s iOS App Store versus Android’s Google Play Store
The Q2 (second quarterly) report revealed that the average download of iOS obtained four times the revenue compared to Google’s Play Store. Even though worldwide downloads of iOS apps are only half the number when compared to Google Play, but Apple generated double the overall revenue.
Though Google started to provide services twice as the iOS App Store, it does not earn more revenue. In spite of all downloads, Apple gains 75 percent of income, which is an increase than Apple’s 2014 revenue of 70 percent. In 2014, Apple led in the revenue than the Google Play Store.
The iOS is gaining more money than Android for developers, although Android apps are advertisement supported and free since it is an advertising company. In the download counts of the app, China has defeated the United States to hold the first position.
The drastic growth in the iOS revenue was due to the increase in adoption of iOS devices and downloads of various applications. The popularity of mobile games also helped a lot to increase the revenue since these gaming apps were contributing more revenue than the other categories of apps.
In China, the usage of a smartphone has attained saturation in some of the major cities like Harbin and Beijing, whereas in smaller areas also the adoption of smartphone starts growing throughout China. After the great success of Apple in China, Google also wants to re-enter into the China’s market which left the country in 2010.
Smartphone usage is continuing to increase their dominance across different markets around the world. Thus, it will result in the increase of revenue market in the upcoming years.
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