Feeds

Bargain-hunting Chinese make life tough for iOS devs

App Store generates just THREE PER CENT of global revenue

High performance access to file storage

Apple iOS developers in China are struggling to make a living from the platform, with App Store revenues in the region accounting for just three per cent of the global total, despite scooping 18 per cent of worldwide downloads.

A new report from Shanghai-based analyst Stenvall Skoeld (via TNW) claims that Apple and its developers in the People’s Republic may have hit a brick wall in the form of high piracy rates and the reluctance of Chinese consumers to pay for digital content.

So far iOS app developers are struggling to make money in China. One reason is that a large amount of iOS devices in China are ‘jailbroken’, allowing users to download apps for free from alternative ‘app stores’. Another challenge is the fact that Chinese users tend to be reluctant to pay for apps, resulting in low revenue per user.

Although Apple doesn’t release App Store revenue data, the analyst combined figures from analytics firm App Annie with Cupertino’s Q3 earnings report to estimate that just 3.1 per cent, or $37m (£23.7m) was made from the Chinese App Store in the last quarter.

The low contribution is a result of a revenue per download just over three cents in China, compared with revenues per download of 28 cents in the US and 19 cents globally.

This does not mean that App developers should give up on China. The Chinese iOS app market looks set for strong growth in the next couple of year. Using a back-of-the-envelope calculation we arrived at a scenario that sees the China App Store market growing by 98 per cent in 2012 and 88 per cent in 2013, with 2013 sales reaching $321m (£205m).

Apple certainly has a great opportunity in the People’s Republic.

Although it now sits fifth in the handset table, Q2 shipments were up 100 per cent from the previous year, and total smartphone shipments in the country jumped a massive 199 per cent over the year, according to Canalys.

However, persuading Chinese customers to spend money on apps may take a while yet. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.