Page 8 - SCBJ-201703
P. 8
South China Business Journal
CHINA BRIEFING According to a notice released by the Cyberspace
Administration of China (CAC), all mobile application
(“app”) stores in the country are required to register with the
government. By requiring app stores to register, the notice
clarifies that legal responsibility for app and app store content lie
with the app store. This latest attempt by the Chinese government
to increase regulatory control over the mobile information and
services underscore the growing importance of the industry.
China is gaining center stage in the so-called process of
“appification”. In other words, the mobile app is becoming the
main user interface, and in the process, changing the ways in
which people consume and businesses sell.
The growth of mobile apps
In 2016, total worldwide downloads from the iOS App Store and Photo from pixabay.com
Google Play increased by 15 percent, and smartphone users spent
almost 900 billion hours on apps, an increase of 25 percent from in China, allowing for several domestic firms to grow and prosper
2015. In fact, China contributed almost 50 percent to the iOS App in its stead. There are over 200 app stores in China, and about 54
Store’s annual growth. China now leads the market by more than percent of all app users go through third party app stores.
15 percent over the next largest market, the US.
Regulating the market
The mobile app market in China is particularly conducive for The fragmentation of the market makes it difficult for the
future growth. Compared to US or UK users, Chinese consumers government to regulate, and can lead to a proliferation of viruses.
use more apps on average per month. Chinese consumers now China is one of the markets most affected by malware infection.
spend five times more in the App Store than they did a mere two With the CAC notice, the government is signaling its intent to
years earlier. crack down on this issue, but whether it will have much effect still
remains to be seen.
A burgeoning Chinese mobile app market
App Annie predicts that China will have the largest revenue Key takeaways
growth of any country by 2020. Games were the most popular China’s growth in mobile app usage and the bright future of
downloads in the third quarter of 2016, making up 75 percent of the market is attracting app developers from all over the world.
all revenue. However, entertainment and video streaming apps However, industry competition is fierce, with top international
grew significantly, and mobile shopping apps show great promise. companies targeting the market, and strong performance from
local teams as well. Government regulatory oversight is likely to
Android is increasing its share of sales in the Chinese market, expand and continue to influence the development of the industry,
while iOS has had a harder time. However, Google Play is blocked making a clear understanding of China’s idiosyncratic cyber
security laws all the more important for foreign entrants.
SY FMC ’ M:AA6Appptprotoaoucrhreinginaghreiknreattsips obileByChinaBriefing
CHINA BRIEFING According to a notice released by the Cyberspace
Administration of China (CAC), all mobile application
(“app”) stores in the country are required to register with the
government. By requiring app stores to register, the notice
clarifies that legal responsibility for app and app store content lie
with the app store. This latest attempt by the Chinese government
to increase regulatory control over the mobile information and
services underscore the growing importance of the industry.
China is gaining center stage in the so-called process of
“appification”. In other words, the mobile app is becoming the
main user interface, and in the process, changing the ways in
which people consume and businesses sell.
The growth of mobile apps
In 2016, total worldwide downloads from the iOS App Store and Photo from pixabay.com
Google Play increased by 15 percent, and smartphone users spent
almost 900 billion hours on apps, an increase of 25 percent from in China, allowing for several domestic firms to grow and prosper
2015. In fact, China contributed almost 50 percent to the iOS App in its stead. There are over 200 app stores in China, and about 54
Store’s annual growth. China now leads the market by more than percent of all app users go through third party app stores.
15 percent over the next largest market, the US.
Regulating the market
The mobile app market in China is particularly conducive for The fragmentation of the market makes it difficult for the
future growth. Compared to US or UK users, Chinese consumers government to regulate, and can lead to a proliferation of viruses.
use more apps on average per month. Chinese consumers now China is one of the markets most affected by malware infection.
spend five times more in the App Store than they did a mere two With the CAC notice, the government is signaling its intent to
years earlier. crack down on this issue, but whether it will have much effect still
remains to be seen.
A burgeoning Chinese mobile app market
App Annie predicts that China will have the largest revenue Key takeaways
growth of any country by 2020. Games were the most popular China’s growth in mobile app usage and the bright future of
downloads in the third quarter of 2016, making up 75 percent of the market is attracting app developers from all over the world.
all revenue. However, entertainment and video streaming apps However, industry competition is fierce, with top international
grew significantly, and mobile shopping apps show great promise. companies targeting the market, and strong performance from
local teams as well. Government regulatory oversight is likely to
Android is increasing its share of sales in the Chinese market, expand and continue to influence the development of the industry,
while iOS has had a harder time. However, Google Play is blocked making a clear understanding of China’s idiosyncratic cyber
security laws all the more important for foreign entrants.
SY FMC ’ M:AA6Appptprotoaoucrhreinginaghreiknreattsips obileByChinaBriefing
