SLIDE 1
Agenda
- Quick self-intro (5 min)
- Chinese Mobile Market Overview
- Business Model
- Networking / Break (15 min)
- Trends to Watch
- Conclusion
- QA, Announcement & Networking
Mobile in China Shuai Quan & Kai Mai July 15, 2009 Agenda - - PowerPoint PPT Presentation
Mobile in China Shuai Quan & Kai Mai July 15, 2009 Agenda - - PowerPoint PPT Presentation
Mobile in China Shuai Quan & Kai Mai July 15, 2009 Agenda Quick self-intro (5 min) Chinese Mobile Market Overview Business Model Networking / Break (15 min) Trends to Watch Conclusion QA, Announcement &
SLIDE 2
SLIDE 3
Chinese Mobile Market Overview
- China has the largest 'pure mobile population' 670 million
‐ subscribers, 400 million of whom does not own a personal computer (MIIT 2009).
- China is also the largest mobile entertainment population – with
35% of the mobile subscribers in China who use their phones to listen to music, compared to 6% in the US (M:Metrics 2008).
- China also happens to be the largest mobile Internet population –
with 117 million mobile subscribers who have accessed Internet through mobile in China (CNNIC 2009).
- Lastly, China is the largest mobile operator feeding the 3G network
‐ with $6.2 billion in 2009.
SLIDE 4
Existing Business Model in Chinese Market
In US, content rules! Best example: iPhone App Within 9 months, iPhone application downloads have reached 1 billion.
Content
- Like Internet businesses in China, everything starts with content. In
the early days of Baidu, the largest Chinese search engine, over 70% of the traffic is brought by its 'free MP3 search & download' service.
- The Chinese youth have been hungrily searching for content for
years and they are the 'alpha users' of ring tone and WAP surfing. ‐
- As long as your content service is well packaged, those 35% of the
mobile subscribers who use their phones to listen to music will come.
- Mobile TV is also popular
- SMS & Ringtone Primary revenue drivers.18 million SMS sent over
Chinese New Year in 2009
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Existing Business Model in Chinese Market
Handset
- long waiting of 3G pushed the market to come up with alternative
business model other than content.
- In China, cell phones have never been sim-locked. Some phones
are bundled with plans and term agreements.
- Average cell phone turnover for Chinese youth is 6 month
‐
SLIDE 6
What to Watch in Chinese Mobile Market
- 3G
- Bandit cell phones
- Smart Phone Platforms
- Mobile Apps
SLIDE 7
3G
- January 2009, 3G licenses were issued to just 3 mobile companies in
- China. (China Mobile, China Unicom, & China Telecom)
- 3G coverage is not good at some cities. The network is still being
built out.
- 3G pricing consider expensive.
Examples of China mobile data plans:
50rmb ($7) for 500mb 100rmb ($14) for 1gb 200rmb ($28) for 5gb 300rmb ($42) for 10gb
SLIDE 8
Bandit Cell Phones
Good looking, practical and heavily loaded with all the latest technology functions available WiFi, Bluetooth, external storage, 4.0 Mega pixels ‐ ‐ Camera, dual sim cards, TV, and, let’s not forget, the 6 Stereo Speakers set built-in
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Bandit Cell Phones
SLIDE 10
Bandit Cell Phones – Olympic Theme
SLIDE 11
Agenda
- Quick self-intro (5 min)
- Chinese Mobile Market Overview
- Business Model
- Networking / Break (15 min)
- Trends to Watch
- Conclusion
- QA, Announcement & Pitch
SLIDE 12
Bandit Cell Phones
Closer look:
- Popular: 50% of the Chinese market; large export market in
developing countries
- Cheap but feature-rich, stylish: $80 - $200
- Creative: all the shapes, colors and trendy features
- Quick to market: 40 days to 60 days from concept to shipment
Why so cheap:
- Skip cell phone manufacture licenses from the Chinese government,
thus saving all the related costs
- Mediatek - key provider of bandit cell phone chipset components in
Taiwan; it has complete chain of core technology support for cell phones
SLIDE 13
Bandit Cell Phones
Trends:
- Smaller factories are dying due to the global recession and increased
regulation in the export market by foreign governments
- The bigger bandi phone manufactuers start to build their brands and
images. Bandit Cell Phone Platform
- Most of bandit phones are on Mediatek platform
- Lots of developers want to use Android, but it is not mature for
Bandit phones or other regular cell phones
- Rockchip will roll out new chipset supporting Android in Oct. It will
greatly lower the barrier of entry into Android-powered smart phones Opportunities:
- Low cost smart phones
- Special-purpose cell phones and devices
SLIDE 14
Smart Phone Platforms
- 1. Symbian & Windows mobile are popular
- 3. OPhone: OMS(open mobile system) developed by China Mobile,
based on Android and localized for China, tightly integrated with China mobile services (mail, music, contact, messaging, GPS, TV(CMMB)
- 5. OPhone: Lenovo O1 (2G version) scheduled to roll out later this
month.
- 7. China Unicom – Uniplus OS
- 9. Where is Apple (next page)
SLIDE 15
Where is Apple
- Rumored to work with China Unicom which has the most expensive
3G data plan, no wifi; iPhone 3GS, 2-year contracts, costs $1000 - $1100(appromiately $450 for the phone itself) Challenges for Apple:
- Apple requires a credit card ( people are not used to own or use
credit cards online. They are more used to use Alipay (the 3rd largest payment platform globally, has 200mil users, USA's population is 300 mil)
- Chinese users are used to pre-paid plans. So the app purchase
usages will be higher if some amount of app purchase credit is bundled with pre-paid plans.
- For business users, they don't want to purchase individual apps that
are billed on their company cards clearly.
- Chinese users are more used to billing through carriers (eg: purchase
ringtones, wallpapers)
- Government control.
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Top Free Apps from iTune China
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Top Paid Apps from iTune China
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Mobile Apps (Finding from iTune Store in China)
- Entertainment, books, education and games are the most popular
categories
- There are some categories that don’t have many apps that are
designed for Chinese or in Chinese: Health Care & Fitness, News, Business, Medical, Productivity, Sports
- Within Social Networking category, QQ, xiaonei, facebook, twitter and
fanfou are at the top ranks
SLIDE 19
Conclusion: What’s In It For Me?
Our take:
- There are definitely a lot of opportunities within Chinese Mobile
Market
- To be part of this journey, the best way is to be there, in the market!
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