Trend review of china's mobile internet industry in 2015

TalkingData Data Centre, September 2015

Behind the 1.2 Billion: Further Development of Mobile Internet Industry Sends Lifestyle Apps Riding the Waves

A Trend Review of Mobile Internet Industry in 2015

The number of mobile terminal users are saturating with a slowdown in the growth of devicesAn overview of mobile internet industry

The number of mobile intelligent terminals in China in 2014Q4-2015Q3

Growth rate（ % ） The number of mobile intelligent terminals (100 million units)

The total number of mobile intelligent terminal reaches 1.24 billionBy Q2 2015, the number of China's mobile intelligent terminals has reached 1.18 billion, up from 120 million in Q4 2014. The number is expected to reach 1.24 billion in Q3 this year, but the overall growth will likely decelerate.

Data source: TalkingData Data Centre; mobile intelligent terminal users refer to the accumulative total of active mobile terminals, including smartphones, tablets, smartwatches and smart TV boxes.

Generations born in the 1990s and 2000s have become major new force of the mobile internet

An overview of mobile internet industry

Age Structure of Mobile Netizens

Dec. 2014 Jul. 2015 The generations born in the 1990s and 2000s take up a larger proportion of the totalBy July 2015, up to 36.6 percent of China's mobile intelligent terminal users are aged 25 and under, a slight increase from the level of last December. The younger generation of mobile netizens is becoming a major force of the market.

Data source: TalkingData Data Centre

Post-90s&

Post-00s

Post-80s

Post-70s Post-60s Pre-60s

Quickest growth witnessed in users in third-tier cities and smaller onesAn overview of mobile internet industry

Data source: TalkingData Data CentreNotes ： First-tier cities are Beijing, Shanghai, Guangzhou and Shenzhen, while second-tier ones refer to other provincial capitals, municipalities, Xiamen, Zhuhai and Shantou Special Economic Zone. The rest of the cities belong to the group of third-tier cities and under.

The number of users in first-tier cities has grown steadily, up 35.1 percent in July 2015 from six months ago;

The number of users in first-tier cities grows 33.2 percent in the same period, relatively slower than that of first-tier cities and third-tier cities ；

The number of users in third-tier cities and smaller ones have witnessed the fastest growth of 41.5 percent, higher than that of first-tier cities and second-tier onesUser scale in different tier of cities

First-tier cities Second-tier citiesThird-tier cities and smaller ones

35.1%Frost-tier cities

33.2%Second-tier Cities

41.5

%Third-tier cities and smaller

ones

Brand concentration in the mobile device market falls, while domestic brands start taking more market sharesAn overview of mobile internet industry

In July, 2015, the top 4 brands used by mobile terminal users have taken up 61.5 percent of the market, down from 64.3 percent in January. Among them, the market share of Apple devices declined 5.8 percentage points, while that of Samsung rose 1.4 percentage points. The market share of Xiaomi stayed steady, and that of Huawei grew 1.5 percentage points.

Market share of the Top 4 brands

Market shares of mobile intelligent device brands

January, 2015 July, 2015

Apple Samsung Xiaomi Huawei Others

61.5%

Market share trends of the Top 4 brands

Apple Samsung Xiaomi Huawei


Over 1 million Apple Watches possessed by Chinese consumersAn overview of mobile internet industry

The number of Apple Watch possessed by Chinese consumers and its growth


Coverage of top Apple Watch apps in following cataloguesSNS

70.0%

28.5%

Entertainment14.6%

3.4%

Finance14.2%

3.7%

Sports Dining2.6% 3.1%

WiFi is still most frequently used for internet connection, while 4G network is gaining popularity

An overview of mobile internet industry

Popularity of Internet Connection Methods

11.0%of the users chose 4G to connect with internet, up from 5.2 percent in January, 2015

2G

3G

4G

WIFI

54.9%of mobile terminal users still use WIFI to connect with internet;


Users in first-tier cities are the most active ones, while users in third-tier cities and smaller ones are still developing the habit of using mobile terminalsBehavior analysis of mobile internet users

The average numbers of apps installed and opened by users in different tiers of cities

• The average numbers of apps installed and opened by users in first-tier cities are the highest among all cities; the average numbers of apps installed and opened by users in third-tier cities and smaller ones are both lower than users in first-tier cities and second-tier ones, as they are still developing a habit of using mobile terminals.

Users in first-tier citiesaveragely install and open the highest number of apps

The number of apps installed The number of apps opened

First-tiercities Second-tier cities Third-tier cities and smaller ones

43.6 41.4 40.4

26.6 25.2 24.7


Mobile terminal users are spending less time on traditional apps and growing more dependent on lifestyle apps.Behavior analysis of mobile internet users

Average time a person spent on different types of apps in a day

Users are becoming less dependent on traditional apps like games, SNS and online shopping. Meanwhile, they are turning to apps that are close to daily life, like education & reading, health & fitness and finance. The average time a person spent on these apps has significantly increased from the level at beginning of this year.

Education & Reading Health &Fitness FinanceIncreaseDecline

(minute)


Activities of mobile terminal users tend to peak at different times on working days and weekends Behavior analysis of mobile internet users

Periods that mobile terminal users tend to be active on working days and weekends(hour)

On Working Days, users tend to be active during early morning (6:00-7:00), noon break (around 12:00) and after dinner (19:00-21:00);

Over the Weekends, users to to be more active during wee hours (0:00-3:00) and morning (10:00-11:00).


Working Days

After Dinner

Lunch Break

Early Morning

Morning

Wee Hours

Weekend

Before Sleep

Different groups of people may also vary in activeness during different periods of the dayBehavior analysis of mobile internet users

Gamer players in Beijing O2O business participants in Hangzhou Financial people in Shanghai

Sleep late and get up early Active before sleepActive in the morning and eveningBeijing ShanghaiHangzhou

Game players in Beijing are more active during the 22:00-3:00 period than other groups, and they are relatively active between 6:00 and 10:00 in the morning;

The activeness of O2O business participants in Hangzhou tend to peak at 10:00 in the morning and 21:00 in the evening;Financial people in Shanghai tend to be more active than other two groups between 21:00 and 22:00 in the evening.


Top 20 most popular appsBehavior analysis of mobile internet users

Tencent apps Alibaba apps Baidu apps Other apps

Among the top 20 most popular apps, 16 are works of Baidu, Alibaba and Tencent, which have developed careful market strategies. Among them, Tencent have taken up the largest share.

Data source: TalkingData Data Centre, ranking of Android apps in July, 2015

Trend review of china's mobile internet industry in 2015

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