Business Insider's analysis unit, BI Intelligence, has released a report after an in-depth study of China’s mobile Internet industry, disclosing some of its findings for free to the public.
The report indicates that China is nearing the "tipping point" for smartphones. At some point next year, smartphone sales in China will surpass those of feature phones. With the proliferation of modern handheld devices and 3G networks, China’s mobile Internet is set to welcome enormous opportunities across various sectors, including mobile advertising, mobile e-commerce, mobile payments, mobile platforms, and app markets.
China has a population exceeding 1.3 billion, but the growth rate of mobile phone users isn't fast enough.
(Mobile user growth in different markets)
This is because the overall mobile phone market in China is approaching saturation...
(Mobile penetration rate in China)
After reaching a 50% penetration rate, the growth rate begins to slow down.
However, smartphones are spreading rapidly and will soon overtake feature phones.
(Smartphone users in China)
Smartphones are driving people to seek faster internet speeds, thus increasing the number of 3G users.
(3G users in China)
China Mobile holds a leading position in the market with a significant advantage.
(Mobile users of different carriers in China)
However, competition among the three major carriers in the 3G sector is fierce.
(3G users of different carriers in China)
China Unicom and China Telecom have 45% of their total users as smartphone users, while this figure is only 25% for China Mobile.
(Smartphone user penetration rate of different carriers in China)
Why is this happening? Because China Mobile has an advantage in rural markets where users find it difficult to afford 3G costs.
Meanwhile, China Mobile's 3G network is much slower.
(3G network speed of different carriers in China)
Given that data services in China are still in their infancy, "the 3G network being too slow" will be a problem for China Mobile.
(Monthly data usage by mobile network users in China)
Mobile network users in China have already surpassed PC network users.
(Comparison of mobile network users vs. PC network users in China)
They are also spending more time accessing the web via mobile devices.
(Proportion of time spent on mobile devices vs. PCs)
Next, let's talk about devices. China accounts for 38% of global smartphone shipments, with shipment volume growing at a year-on-year rate of 98%.
(Trend in changes in smartphone shipment volumes in China)
Young people are becoming the early adopters of mobile networks. Currently, there are 464 million mobile Internet users in China.
(Age distribution of mobile Internet users)
Competition in China’s smartphone market is intense, with Samsung holding the highest market share at 17.6%.
(Market share of smartphone shipments in China by manufacturers)
To view the complete version of BI Intelligence's research report, a paid subscription is required.
The cover image and illustrations are from BI Intelligence.