2. About 1st 2nd and 3rd tier in China
 China has a population of more than 1.3 billion people. However the lifestyles, living
standards, education level and consumer needs of the population varies greatly from
region to region and from city to city. The mega cities of Beijing, Shanghai, Guangzhou,
Shenzhen are a world apart from the rural towns of western china. Despite these big
differences the smartphone has become ubiquitous throughout the country, Umeng now
tracks 780million active smart devices across China. Much is known about users in the tier
1 cities as well as the provincial capital 2nd tier cities, in this report Umeng brings into
focus some of the characteristics of mobile users in the smaller tier 3 cities and towns.
 First tier includes 4 biggest cities in China, maybe also “the most international” ones –
Beijing, Shanghai, Guangzhou and Shenzhen.
 Second tier includes 15 cities, namely, Tianjin, Chongqing, Nanjing, Hangzhou, Chengdu,
Wuhan, Xi’an, Qingdao, Shenyang, Dalian, Xiamen, Wuxi, Jinan, Changsha and Fuzhou.
They are all big cities with large populations and high GDP.
 The rest are third tier cities and below. Don’t be fooled into
thinking tier 3 means small, many tier 3 cities have populations
over 1million. Tier 3 city users represent the majority of
Chinese users and the future growth area for the mobile
internet market.
1st tier cities
2nd tier cities

3. 380
500
590
700 780
0
200
400
600
800
1000
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
The increasing trend of
domestic active devices
Nearly 60% of active devices located in third tier cities or smaller
 Umeng currently track over 780 million active smart devices in China, including phones
and tablets.
 58% of active devices are distributed in cities of the third tier and below, more than triple
of that in Beijing, Shanghai, Guangzhou and Shenzhen together.
By million
19%
23%58%
Distribution of active
devices in cities
（2014-3）
First-tier cities
Second-tier
cities
Third-tier cities
and below
Data Source: Umeng Analytics Platform www.umeng.com Data Source: Umeng Analytics Platform www.umeng.com

4. iOS devices in 3rd tier cities and below outnumber those in 1st and 2nd tier cities
 The number of devices in cities of the third tier and below is continuingly increasing.
 In the past the majority of iOS users where urbanites living in 1st and 2nd tier cities, this
year this has changed with 54% of iOS users now based in 3rd tier cities or below
 The Android market has also shown strong growth with 60% of all android devices now
in the hands of users living in lower tier cities.
Data Source: Umeng Analytics Platform www.umeng.com Data Source: Umeng Analytics Platform www.umeng.com
20% 18%
29%
22%
51%
60%
Mar 2013 Mar 2014
Distribution of active
Android devices
Third-tier cities
and below
Second-tier cities
First-tier cities
23% 21%
30%
24%
47% 54%
Mar 2013 Mar 2014
Distribution of active iOS
devices
Third-tier cities
and below
Second-tier
cities
First-tier cities

5. 27% growth in daily sessions in third-tier cities grow by 27%, catching up with
those in first and second tier cities
 The rapid growth smartphone usage means that Tier 3 city users now use their phones
just as much and just as often as users in first and second tier cities.
Data Source: Umeng Analytics Platform www.umeng.com
First-tier cities Second-tier cities Third-tier cities and
below
Annual changes daily session per user
2013
2014
Annual growth 10% Annual growth 27%Annual growth 18%

6. 0
1
2
3
Jan 2014 Feb 2014 Mar 2014 Apr 2014
Number of 4G sessions by
month (Android)
4G battlefield
 The roll out of 4G network across major cities by all network operators started last year
and many cities now benefit from 4G coverage. The number of 4G sessions has grown
by nearly 3 times since the beginning of 2014.
 Currently 4G is only available in 1st and 2nd tier cities however soon the battlefield will
move to 3rd tier cities too.
2.8 times of that
in January
Data Source: Umeng Analytics Platform www.umeng.com Data Source: Umeng Analytics Platform www.umeng.com
0%
20%
40%
60%
80%
100%
Jan 2014 Feb 2014 Mar 2014 Apr 2014
Monthly 4G traffic
distribution by province
Others
Jiangxi
Fujian
Zhejiang
Jiangsu
Hubei
Shanxi
Beijing

7. China Mobile has the largest share of internet data traffic while China Unicom
has seen the fastest growth in the past two years
 In Q1 of 2014, among the top three operators, China Mobile had the largest share of mobile
phone data traffic, accounting for 56% of the total.
 In 2011, data from Umeng shows that in the past two years, the share of China Unicom has
grown from 19% to 31%. The share of China Telecom didn’t change much.
 The share increase of China Unicom is down to the popularization of 3G network in the past
two years. Compared with the dominant position of China Mobile in the 2G network, the 3G
network traffic is almost equally divided by the three top operators. It can be seen that the 4G
network will become the next hot battlefield of operators.
Data Source: Umeng Analytics Platform www.umeng.comData Source: Umeng Analytics Platform www.umeng.com
28%
12%
34%
88%
37%
2G
3G
Traffic distribution among
the top 3 operators
（2014 Q1）
China Telecom China Unicom China Mobile
13%
15%
31%
19%
56%
66%
2014Q1
2011Q3
Traffic distribution among
the top 3 operators
through 2.5 years
China Telecom China Unicom China Mobile

8.  From the regional distribution of users, it can be seen that users in cities of the third tier
and below prefer wallpaper, system tool, video, music, game, entertainment and
photography apps, to meet their leisure and entertainment needs and manage their own
devices. These are perhaps more familiar types of apps for users upgrading from older
feature phones.
 The most popular apps used by users of cities of the first and second tiers are travel,
navigation, business, finance and education apps. Representing their higher incomes
and urban lifestyles.
Tier 3 city users access their phones for Entertainment and gaming
Data Source: Umeng Analytics Platform www.umeng.com
0%
25%
50%
75%
100%
Travel
Navigation
Finance
Education
Business
IM
Music
News
Photography
Health
E-commerce
SNS
Life
Books
Entertainme…
Games
Video
Systemtools
Wallpaper
Geographic distribution of vertical users
Third tier and below Second tier First tier

9. More “night owl” users in third-tier cities, with the night peak arriving one hour
later than that in first- and second-tier cities
 Most of users in cities of the third tier and below use apps after 22:00 while the peak
hours for users in cities of the first and second tiers start from 21:00. Users in cities of
the third tier tend to use mobile phones before the bed time to relax and entertain
themselves.
 There are less users in cities of the third tier and blow who use mobile phones between
7:00 and 11:00 than those in cities of the first and second tiers, which is to some extent
due to the fact that there is less users of navigation and business apps.
Data Source: Umeng Analytics Platform www.umeng.com
0%
2%
4%
6%
8%
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
24-hour distribution of app usage in
different cities
First-tier cities Second-tier cities Third-tier cities and below

10. Third Tier city users have different tastes in games
 Users in different cities prefer different types of mobile games. The most popular games
among users in cities of the first and second tiers are simulation business games, education
games and adventure games, while users in cities of the third tier and below prefer action
games, card games, sports games.
Data Source: Umeng Analytics Platform www.umeng.com
16% 18% 20% 22%
Adventure
Education & family
Simulation
First- and second-tier cities
39% 39% 40% 40% 41%
Sports
Board & Card
Action
Third-tier cities and below
Top 3 game categories in different cities (by session)

11. Strong showing from domestic brands
 The market share of Chinese brands Coolpad and OPPO surpassed that of HTC in Q1 of 2014.
so far, four of the top five brands of active Android devices in China are Chinese brands. But
the market dominance of Samsung still cannot be shaken.
Data Source: Umeng Analytics Platform www.umeng.com
23.8%
8.0%
7.7%
7.6%5.2%4.8%
3.9%
3.9%
3.7%
1.9%
29.4%
Distribution of active Android device
brands 2014 Q1
Samsung
Lenovo
Huawei
Mi
Coolpad
OPPO
HTC
BBK
ZTE
Sony
Others

12. Third tier cities shun big name in favor of competitively priced local brands
 Samsung grabs the biggest market share in all cities, with the highest of 33% in first-tier
cities while its market share in cities of the third tier and below is only 20%. It is followed by
Xiaomi in first-tier cities while by Lenovo in cities of the second and third tiers and below.
 The combined market share of the top five brands shows that most of the big name brands
are concentrated in first-tier cities and these users are more aware of big name brands
when making a choice; while in cities of the third tier and below, less Android brands are
used for users are more sensitive to the price.
Top 5 Android brands in different cities（2014 Q1）
Data Source: Umeng Analytics Platform www.umeng.com
5%
7%
8%
11%
33%
OPPO
Lenovo
Huawei
Xiaomi
Samsung
First-tier cities
5%
7%
8%
8%
26%
OPPO
Huawei
Xiaomi
Lenovo
Samsung
Second-tier cities
6%
6%
8%
8%
20%
Coolpad
Xiaomi
Huawei
Lenovo
Samsung
Third-tier cities and
below

13. Summary
 The number of active smart devices in China exceeded 780 Million by Q1 2014. 58% of active devices
are distributed in cities of the third tier and below, more than triple of that in Beijing, Shanghai,
Guangzhou and Shenzhen together.
 The rapid growth smartphone usage means that Tier 3 city users now use their phones just as much
and just as often as users in first and second tier cities. With living standards continuing to improve
and 4G rolling out across the country we can expect to see mobile use in tier 3 cities only grow
further.
 Users in cities of the first and second tiers expect mobile Internet to meet their living, working and
educational needs in life (travel, navigation, business, finance, education, etc.), while users in cities of
the third tier tend to use mobile apps to meet leisure and entertainment needs (videos, games,
entertainment and photography), and better manage devices (wallpaper and system tools).
 Users in 3rd tier cities are more likely to purchase a domestic device rather than from a big name
manufacturer
 Users in cities of the first and second tiers prefer simulation games, education games and adventure
games; meanwhile, action games, card games, sports games and music games are the favorite of
users in cities of the third tier and below.
 China Mobile has the largest share of internet data traffic while China Unicom has seen the fastest
growth in the past two years.

14. Recent Trends in China Market

15. iPad mini beats iPad 2 and becomes the most popular iPad device in China
 Since January 2014, the % of active iPad mini in China has surpassed that of iPad2 in China,
making iPad mini the most popular device of the iPad series. Meanwhile, the share of iPad Air
and iPad mini 2 released at the end of 2013 also keeps growing.
 As far as iPhone is concerned, the % of active iPhone 5s has surpassed that of iPhone 5, with
the “Luxury Gold” color proving popular with Chinese customers.
 The number of active iPhone 5c remain low with little or no growth in share.
Data Source: Umeng Analytics Platform www.umeng.com Data Source: Umeng Analytics Platform www.umeng.com
0%
10%
20%
30%
Nov
2013
Dec
2013
Jan
2014
Feb
2014
Mar
2014
iPad Series Distribution
Trend
iPad Air
iPad mini 2
iPad mini
iPad 20%
10%
20%
30%
Nov
2013
Dec
2013
Jan
2014
Feb
2014
Mar
2014
iPhone Series Distribution
Trend
iPhone 5s
iPhone 5c
iPhone 5

16. The percentage of jailbroken of iOS devices is 14.2%
 The ratio of jailbroken iOS phones reached an all time low of 12.7% in December 2013, but
has now climbed up to 14.2% as of March 2014.
 One of the popular reasons in China to jailbreak is to allow the use of 3rd party Chinese
character keyboard apps. Apple has recently announce at WWDC that they will support
party keyboards. It will be interesting to see if this translates into a further drop in the
number of jailbroken phones in China.
Data Source: Umeng Analytics Platform www.umeng.com
10%
12%
14%
16%
18%
20%
Oct 2013 Nov 2013 Dec 2013 Jan 2014 Feb 2014 Mar 2014
Jailbroken rate of iOS devices in China

17. Dec 2013 Mar 2014
The amount of active TV
box in China
The number of active android based TV boxes in the country exceeds 7 million
 The number of Android set top TV boxes installed with mobile apps has grown by 50% in
the past quarter. There are 7 million TV boxes in China, accounting for 1.4% of active
Android devices.
 The top five TV box brands are Xiaomi, Kaiboer, 10Moons, Tmall and Inphic.
1.5 times of that
in January
Data Source: Umeng Analytics Platform www.umeng.com Data Source: Umeng Analytics Platform www.umeng.com
5.7%
6.0%
6.4%
10.9%
25.4%
Inphic
Tmall
10Moons
Kaiboer
Xiaomi
Top 5 TV box brand
(2014.3)

18.  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.
Different tiers of cities: cities are divided into different tiers according to several indicators such
as population, GDP, and educational strength, rather than their mobile Internet development.
Specifically, first-tier cities include Beijing, Shanghai, Guangzhou and Shenzhen; second-tier
cities includes 15 cities, namely, Tianjin, Chongqing, Nanjing, Hangzhou, Chengdu, Wuhan,
Xi’an, Qingdao, Shenyang, Dalian, Xiamen, Wuxi, Jinan, Changsha and Fuzhou; the rest are
third-tier cities and below.
 Release Date:
June 2014
 Data Source:
Analysis data in the report is based on over 230,000 Android and iOS apps from the Umeng
platform. All data was collected from January to April 2014.
 Statement:
All data belong to Umeng platform. Any people and organization are permitted to quote the
report, please cite original source when using this data.
About

19.  Analytics
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