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Mobile ecosystem in China
                  place4BRICS
c.   1,000,000,000
      MOBILE   PHONE   SUBSCRIBERS   IN      CHINA




                                          Source: ComScore, Reuters, iiMedia, Dec 2011
Mobile evolution. The West vs. China
Typical “West”

  Phone    SMS   Games   Emails   News     Social   TV      Banking   Loyalty       Access


1980s            1990s                   2000                2010                  next...


                                                     2008 (China)
                                                     3G introduced




                                                                       Local app     Local
                                                                        stores      devices




                                                                In China:

                                                Mobile Internet … became the internet
What about app usage in China




                                Source: iiMedia, Apr 2011
What about the operating systems in China?
          2010                                   55%+

          2011                     39%



                   11%+

                      12%



                      14%+

                             31%



             7%+

                 8%

                                         Source: iiMedia 2011
700,000
A N D R O I D A C T I VA T I O N S E V E R Y D AY G L O B A L L Y
                                                                    +




                 China is big contributor




                                                                        Source: Google, 2012
Some key factors in China mobile eco-system

  Phones are purchased independent of contract (like most BRIC).
   Very limited contract-subsidies

  Buy device at full price, then buy SIM
    –  Like India, large pre-paid base                        No paid
    –  Like Brazil, high phone rotation                      app stores
                                                              in China
  Relatively low-cost internet bundles

  Phone seller recommends phones and apps
    –  “key influencer”
                                                  No Mobile Number Portability
                                                                        Expected in 2012
                                                     Creates sticky customers for carriers
40+          million

Smartphones will
                         One of the lowest cost barriers to
                       technology access for any consumer


be added next 2
years in China


“leap frog effect”
Connection of Mobile Phones to Internet in China
  Adding a 100 million more mobile internet connections every coming year




            Units sold in 100 million               Rate of growth

                                                                     Source: iiMedia, Apr 2011
South China is the largest mobile usage area
Is China just copying trends…

                or surpassing them?
Case Study: 3G.cn “GO Apps” (Android)

  Mobile-only internet portal:
    –  Created the mobile internet wave in China
    –  70% of Chinese mobile internet users (c.200m)
       have visited 3G.cn

  Vision to create mobile internet for the masses
  Focus on user experience
  Focus on content

                                International OEMs are licensing their IP now:


  Free GO apps.
  Over 100 million downloads
Case Study: QMobao – rapid apps

                           Self-service app
                           development platform


                           Featured in:




                           Disclaimer: This is a FabriQate product
China is actually leading the way in a couple mobile areas …



                                       Mobile Internet (3G.cn)

                                       Mobile Commerce
                                       (TaoBao.com)


                                       Mobile Search
                                       (mINFO)

                                       Mobile Revenue
                                       (alternate micro-payments)

                                       App Distribution
                                       (micro-app stores, eg: 91 Market)
1   This isn't Kansas anymore!


2   Cut out the features.


3   Localization isn't just changing the language.


4   New sub-ecosystems.


5   Different revenue models (Operator micro-payments?)
One final thought…

     it’s still a feature-phone world!
Feature phones are still in majority…
Over 50% in developed markets, less than 20% in EM
There is a sub-ecosystem for this as well

    Rural charger shops (collect, charge, return)
    Phone repair
    SIM collection
    Top-up (brokers)

  How to provide content and entertainment
  Internet on feature-phones (BRIC)

  Eg: Facebook Java apps gets 4x more time-spent on
   average per user than their smartphone apps
What is important in BRIC mobile ecosystem



     Devices                                                  3G isnt everywhere yet


               Mobile                              Internet
               compatibility                   dependency
                                     App




                               Pricing structure
                                                    Alternate methods of revenue
FabriQate has deep expertise in mobile technology



 Apple iOS                             Google Android                                     App
 iPhone and iPad apps. Part of Apple   Core Developer Network                     Development
 training network and HIG
                                       Early Release Program
 Since 2008                                                                       Design and UI


                                                                                   Component
                                                                                  Development

                                                                                        Quality
                                                                                     Assurance
 Windows Phone 7 & Nokia               HTML5 web apps
 Working with Microsoft & Nokia as a   Significant experience including world’s    Maintenance
 launch partner for Mango              first HTML5 car configurator in 2010        And Support
 Depp relationship with Nokia as for
 new products since 2008 including
 Symbian and Meego launches
CLIENTS:




   FMCG & Retail    Travel &     TV & media   OEMs &      Agencies &
                   hospitality                Operators    Partners
Award-winning credentials




Google Android 1000           Windows Phone 7 Mango                         GSMA
Core Developer Network        Launch Partner                (International body on
1000 early-launch partner                                 Mobile Phone standards)
                              Launch partner and Nokia
Google Early Release Access   approved developer         One of 2 agencies globally
T E C H N O L O G Y




LONDON   GUANGZHOU   MUMBAI   HONG KONG*

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FabriQate - Mobile Scene in China

  • 1. Mobile ecosystem in China place4BRICS
  • 2. c. 1,000,000,000 MOBILE PHONE SUBSCRIBERS IN CHINA Source: ComScore, Reuters, iiMedia, Dec 2011
  • 3. Mobile evolution. The West vs. China Typical “West” Phone SMS Games Emails News Social TV Banking Loyalty Access 1980s 1990s 2000 2010 next... 2008 (China) 3G introduced Local app Local stores devices In China: Mobile Internet … became the internet
  • 4. What about app usage in China Source: iiMedia, Apr 2011
  • 5. What about the operating systems in China? 2010 55%+ 2011 39% 11%+ 12% 14%+ 31% 7%+ 8% Source: iiMedia 2011
  • 6. 700,000 A N D R O I D A C T I VA T I O N S E V E R Y D AY G L O B A L L Y + China is big contributor Source: Google, 2012
  • 7. Some key factors in China mobile eco-system   Phones are purchased independent of contract (like most BRIC). Very limited contract-subsidies   Buy device at full price, then buy SIM –  Like India, large pre-paid base No paid –  Like Brazil, high phone rotation app stores in China   Relatively low-cost internet bundles   Phone seller recommends phones and apps –  “key influencer” No Mobile Number Portability Expected in 2012 Creates sticky customers for carriers
  • 8. 40+ million Smartphones will One of the lowest cost barriers to technology access for any consumer be added next 2 years in China “leap frog effect”
  • 9. Connection of Mobile Phones to Internet in China Adding a 100 million more mobile internet connections every coming year Units sold in 100 million Rate of growth Source: iiMedia, Apr 2011
  • 10. South China is the largest mobile usage area
  • 11. Is China just copying trends… or surpassing them?
  • 12. Case Study: 3G.cn “GO Apps” (Android)   Mobile-only internet portal: –  Created the mobile internet wave in China –  70% of Chinese mobile internet users (c.200m) have visited 3G.cn   Vision to create mobile internet for the masses   Focus on user experience   Focus on content International OEMs are licensing their IP now: Free GO apps. Over 100 million downloads
  • 13. Case Study: QMobao – rapid apps Self-service app development platform Featured in: Disclaimer: This is a FabriQate product
  • 14. China is actually leading the way in a couple mobile areas … Mobile Internet (3G.cn) Mobile Commerce (TaoBao.com) Mobile Search (mINFO) Mobile Revenue (alternate micro-payments) App Distribution (micro-app stores, eg: 91 Market)
  • 15. 1 This isn't Kansas anymore! 2 Cut out the features. 3 Localization isn't just changing the language. 4 New sub-ecosystems. 5 Different revenue models (Operator micro-payments?)
  • 16. One final thought… it’s still a feature-phone world!
  • 17. Feature phones are still in majority…
  • 18. Over 50% in developed markets, less than 20% in EM
  • 19. There is a sub-ecosystem for this as well   Rural charger shops (collect, charge, return)   Phone repair   SIM collection   Top-up (brokers)   How to provide content and entertainment   Internet on feature-phones (BRIC)   Eg: Facebook Java apps gets 4x more time-spent on average per user than their smartphone apps
  • 20. What is important in BRIC mobile ecosystem Devices 3G isnt everywhere yet Mobile Internet compatibility dependency App Pricing structure Alternate methods of revenue
  • 21. FabriQate has deep expertise in mobile technology Apple iOS Google Android App iPhone and iPad apps. Part of Apple Core Developer Network Development training network and HIG Early Release Program Since 2008 Design and UI Component Development Quality Assurance Windows Phone 7 & Nokia HTML5 web apps Working with Microsoft & Nokia as a Significant experience including world’s Maintenance launch partner for Mango first HTML5 car configurator in 2010 And Support Depp relationship with Nokia as for new products since 2008 including Symbian and Meego launches
  • 22. CLIENTS: FMCG & Retail Travel & TV & media OEMs & Agencies & hospitality Operators Partners
  • 23. Award-winning credentials Google Android 1000 Windows Phone 7 Mango GSMA Core Developer Network Launch Partner (International body on 1000 early-launch partner Mobile Phone standards) Launch partner and Nokia Google Early Release Access approved developer One of 2 agencies globally
  • 24. T E C H N O L O G Y LONDON GUANGZHOU MUMBAI HONG KONG*