FabriQate presents an overview of the Chinese Mobile scene and opportunities that exist in the market in China. China is fast emerging as one of the largest mobile markets with 1 billion mobile subscribers and a rapid progression towards internet enabled mobiles. This creates a very vibrant and rich ecosystem for mobile apps and offerings in China. China has also created some unique mobile models especially in the mobile web scene which are a learning lesson for the US and European mobile ecosystems. In that way we find that China is actually innovating and leading the way in certain areas of mobile. Presented at place4BRICS in Jan 2012

1. Mobile ecosystem in China
place4BRICS

2. c. 1,000,000,000
MOBILE PHONE SUBSCRIBERS IN CHINA
Source: ComScore, Reuters, iiMedia, Dec 2011

3. Mobile evolution. The West vs. China
Typical “West”
Phone SMS Games Emails News Social TV Banking Loyalty Access
1980s 1990s 2000 2010 next...
2008 (China)
3G introduced
Local app Local
stores devices
In China:
Mobile Internet … became the internet

4. What about app usage in China
Source: iiMedia, Apr 2011

5. What about the operating systems in China?
2010 55%+
2011 39%
11%+
12%
14%+
31%
7%+
8%
Source: iiMedia 2011

6. 700,000
A N D R O I D A C T I VA T I O N S E V E R Y D AY G L O B A L L Y
+
China is big contributor
Source: Google, 2012

7. Some key factors in China mobile eco-system
 Phones are purchased independent of contract (like most BRIC).
Very limited contract-subsidies
 Buy device at full price, then buy SIM
– Like India, large pre-paid base No paid
– Like Brazil, high phone rotation app stores
in China
 Relatively low-cost internet bundles
 Phone seller recommends phones and apps
– “key influencer”
No Mobile Number Portability
Expected in 2012
Creates sticky customers for carriers

8. 40+ million
Smartphones will
One of the lowest cost barriers to
technology access for any consumer
be added next 2
years in China
“leap frog effect”

9. Connection of Mobile Phones to Internet in China
Adding a 100 million more mobile internet connections every coming year
Units sold in 100 million Rate of growth
Source: iiMedia, Apr 2011

10. South China is the largest mobile usage area

11. Is China just copying trends…
or surpassing them?

12. Case Study: 3G.cn “GO Apps” (Android)
 Mobile-only internet portal:
– Created the mobile internet wave in China
– 70% of Chinese mobile internet users (c.200m)
have visited 3G.cn
 Vision to create mobile internet for the masses
 Focus on user experience
 Focus on content
International OEMs are licensing their IP now:
Free GO apps.
Over 100 million downloads

13. Case Study: QMobao – rapid apps
Self-service app
development platform
Featured in:
Disclaimer: This is a FabriQate product

14. China is actually leading the way in a couple mobile areas …
Mobile Internet (3G.cn)
Mobile Commerce
(TaoBao.com)
Mobile Search
(mINFO)
Mobile Revenue
(alternate micro-payments)
App Distribution
(micro-app stores, eg: 91 Market)

15. 1 This isn't Kansas anymore!
2 Cut out the features.
3 Localization isn't just changing the language.
4 New sub-ecosystems.
5 Different revenue models (Operator micro-payments?)

16. One final thought…
it’s still a feature-phone world!

17. Feature phones are still in majority…

18. Over 50% in developed markets, less than 20% in EM

19. There is a sub-ecosystem for this as well
 Rural charger shops (collect, charge, return)
 Phone repair
 SIM collection
 Top-up (brokers)
 How to provide content and entertainment
 Internet on feature-phones (BRIC)
 Eg: Facebook Java apps gets 4x more time-spent on
average per user than their smartphone apps

20. What is important in BRIC mobile ecosystem
Devices 3G isnt everywhere yet
Mobile Internet
compatibility dependency
App
Pricing structure
Alternate methods of revenue

21. FabriQate has deep expertise in mobile technology
Apple iOS Google Android App
iPhone and iPad apps. Part of Apple Core Developer Network Development
training network and HIG
Early Release Program
Since 2008 Design and UI
Component
Development
Quality
Assurance
Windows Phone 7 & Nokia HTML5 web apps
Working with Microsoft & Nokia as a Significant experience including world’s Maintenance
launch partner for Mango first HTML5 car configurator in 2010 And Support
Depp relationship with Nokia as for
new products since 2008 including
Symbian and Meego launches

22. CLIENTS:
FMCG & Retail Travel & TV & media OEMs & Agencies &
hospitality Operators Partners

23. Award-winning credentials
Google Android 1000 Windows Phone 7 Mango GSMA
Core Developer Network Launch Partner (International body on
1000 early-launch partner Mobile Phone standards)
Launch partner and Nokia
Google Early Release Access approved developer One of 2 agencies globally

24. T E C H N O L O G Y
LONDON GUANGZHOU MUMBAI HONG KONG*