Chinese Mobile Web users to be more than 520 million by the end of 2012

6 September 2012 17 h 54 min Comments Off

The number of China’s mobile Internet users is expected to be more than 520 million by the end of the year (from last year’s 429 million) and will exceed the number of desktop Web users next year, according to a report by Beijing-based research firm Zero2IPO Group.

In 2011, the revenue from China’s mobile Internet industry was 101.7 billion yuan ($16 billion), up 37 percent year-on-year, the report said. The increase was largely due to bigger investments in added-value mobile services by telecom carriers. In addition, the enthusiasm of third-party providers helped to develop attractive applications, which increased people’s willingness to pay for the services.

Mobile gaming is still one of the hottest sectors in the mobile Web industry. The number of mobile gaming players in China will be 178 million this year, with a market volume of more than 18 billion yuan.

$378 mn investment in the first half of the year

The rapid development of the mobile Web market in China has also attracted many venture capital and private equity investors. In the economic downturn, mobile internet becomes the hottest investment spot in China. With the development of mobile internet into large scale, large numbers of investors see great opportunities in the further development of this industry.

Data from Zero2IPO Database reveals that in the first half of the year, about 30 investments were made in China’s mobile Internet industry, with a disclosed investment amount of $378 million (a year-on-year increase of 18 percent), which means $22.25 million for each on average.

Due to the decreasing of participation costs for both personal users and enterprises and the open of application entrances and operation systems, mobile internet industry has entered into a high-speed development period.

“But it’s still not the harvest time for mobile internet at the moment”, said Ni Zhengdong, Chairman of Zero2IPO Group on the second China Mobile Internet Investment and Financing Forum on Sept 4.

“Although the total investment volume of VC and PE in the first half of the year has declined about 60 percent year-on-year, yet the investment in the mobile- Internet industry has risen and the momentum is expected to continue,” said Gavin Ni, founder and chief executive officer of Zero2IPO Group. “There will be at least five companies in mobile-Internet industry to be listed in the next three to five years in China, he added, and the market revenue of mobile Internet will rise to about 130 billion yuan ($20.5 billion) from last year’s 102 billion yuan”.

Zhou Kui, partner of Sequoia Capital China, said “despite global economic uncertainty, he is optimistic about investment in the mobile-Internet industry. We attach great importance to the development of the mobile- Internet industry, since it is of great potential” .

Xu Shengyuan, managing director of Intel Capital China, the investment arm of US-based chip giant Intel Corp, said “every sector related to mobile Internet could attract Intel Capital’s attention. The mobile-Internet industry provides much convenience to consumers and constitutes a huge vertical market. There will definitely be some new large-scale companies coming out of this industry.”

“At the end of the great revolution in IT industry, mobile internet will see a much greater and much longer increase”, said Chen Yizhou, CEO of Renren Inc. “The mobile-Internet market has great potential, representing the biggest trend in the information technology industry in the next 10 years,” Chen said.

Mobile e-commerce, wireless value-added services and mobile gaming services have attracted the most investment this year. Mobile e-commerce will become one of the major investment areas in the industry, said the report. VC and PE companies made five investments in mobile e-commerce industry in the first half of this year.

Source: Zero2IPO Group, chinadaily.com.cn (04 & 05/09/2012), morningwhistle.com (05/09/2012)

Related posts:

Comments are closed

Other News

  • China (mainland) film Brilliant future expected for Chinese cinema: interview

    Brilliant future expected for Chinese cinema: interview

    Jiang Wen (R), a well-known Chinese director, walks down the red carpet with his wife Zhou Yun at the opening ceremony of the 70th Venice Film Festival in Venice, Italy, Aug 29, 2013. [Photo / Xinhua] (Xinhua, 04 Sep, 2013)Chinese films have achieved over the past few years very positive results in terms of both quantity and quality, and will drive their technology-led development, 70th Venice Film Festival president Alberto Barbera told Xinhua in a recent exclusive interview. This venerable [...]

    Read more →
  • Breaking news China (mainland) film Cloudary extends script to movie industry

    Cloudary extends script to movie industry

    (chinadaily.com.cn, 26 Aug, 2013) Cloudary Corp – an online literature platform owned by interactive media giant Shanda Group – said on Friday that it reached a film script agreement with the Chinese movie firm Seven Stars Films. Seven Stars Films, a movie production and investment firm owned by Chinese media entrepreneu r Bruno Wu, will link Cloudary’s literature with the world’s movie industry. Wu, who is married to popular TV host Yang Lan, founded Seven Star Films in 2012. The [...]

    Read more →
  • Breaking news China (mainland) film China’s movie market booms with local content

    China’s movie market booms with local content

    ( Agencies, 23 Aug, 2013) In “American Dreams in China”, Cheng Dongqing is giving a lecture in an abandoned factory in Beijing . Snow falls through the damaged roof and a power cut sends students reaching for their flashlights. The movie , about how young Chinese in the 1990s tried every means to learn English so they could study overseas, is part of a boom in domestic productions that is outpacing foreign film s at the box office in China. [...]

    Read more →
  • Breaking news China (mainland) film Fast forward with film

    Fast forward with film

    (China Daily, 23 Aug, 2013) In the past year, Chinese films have galloped ahead like a dark horse, beating Hollywood imports. It is hardly surprising that most of these domestic hits are comedies. Comedy is mostly local. When Hollywood sent scouts to recover the secret formula, many of them reported that these Chinese movies were not particularly funny. Of course not. When you translate every line into English, you have lost much of the fun, leaving only a few sight [...]

    Read more →
  • Breaking news China (mainland) Digital Mobile game firms looking abroad

    Mobile game firms looking abroad

    (China Daily, 21 Aug, 2013) Intensifying domestic competition is driving Chinese mobile game developers into overseas markets, said Google Inc, owner of the world’s most used smartphone operating system. Japan and South Korea may become “sizeable” money-spinners for developers in China in the coming years, it added. “Tapping into South Korea and Japan makes sense for Chinese developers, because both countries have a large smartphone user base and high sales volume in the mobile gaming sector,” said Ben Zhang, China [...]

    Read more →
  • Breaking news China (mainland) tv PPTV denies buyout rumors

    PPTV denies buyout rumors

    (chinadaily.com.cn, 14 Aug, 2013) Online video provider PPTV has denied rumors it will be jointly acquired by e-commerce giant Alibaba Group Holding Ltd and Hunan Satellite TV. “We have noticed related media reports. PPTV is operating independently, well, and we have nothing to announce at present,” PPTV told China Daily on Wednesday. A report from IT industry portal 36kr.com said on Wednesday that the prospective deal is almost closed, with the transaction reaching $400 million. It cited venture capital sources [...]

    Read more →
  • Breaking news China (mainland) film Film industry needs long tail to grow

    Film industry needs long tail to grow

    (China Daily, 15 Aug, 2013) The domestic film market registered record half-yearly box office returns of 10.9 billion yuan ($1.77 billion) in the first six months of this year, up 35 percent year-on-year, and there have been excited voices saying that the Chinese film industry is about to boom in the international market. However, box office success is just part of the industry’s chain, and without the further development of licensed movie merchandising, the Chinese film industry is still in [...]

    Read more →
  • Breaking news China (mainland) Digital New WeChat game becoming painfully popular

    New WeChat game becoming painfully popular

    (chinadaily.com.cn, 15 Aug, 2013) A new mobile phone game on WeChat, a social network app in China, is proving so popular that it’s causing hand injuries for many Chinese users. The game, which was recently introduced to WeChat’s 400 million subscribers, allows users to compete online with their friends in aircraft battles. Within two hours after the release of the game on Aug 5, there were more than 180 million downloads. But Zou Cheng, an orthopedic doctor at Hangzhou First [...]

    Read more →